Someone might use Rocket Lawyer or LegalZoom for various reasons, including creating and managing legal documents quickly and cheaply, protecting their intellectual property rights, finding a specialized attorney, or getting access to other legal services.
One common use case for these types of platforms is their registered agent services. With Rocket Lawyer and LegalZoom, you can easily set up a registered agent in any state you want to do business in. This service allows companies to receive essential documents 24/7 without worrying about having an office located in that jurisdiction.
Rocket Lawyer and LegalZoom Compared to the Best
Although Rocket Lawyer and LegalZoom are two of the most popular registered agent services out there, neither one made our list of the top six. Northwest Registered Agent is the best overall option for anyone looking for a reliable registered agent service. You can form a business with them right now for just $39.
- Northwest Registered Agent – Best overall
- ZenBusiness – Best for LLCs
- Incfile – Best free registered agent services
- Swyft Filings – Most versatile registered agent services
- MyCorporation – Best for small businesses
- MyCompanyWorks – Best for switching registered agents
Rocket Lawyer vs. LegalZoom: High-Level Comparison
Rocket Lawyer and LegalZoom are two of the most popular online legal service providers, offering a wide range of services to help individuals and businesses with their legal needs. Both companies offer registered agent services that allow businesses to receive documents 24/7 without maintaining an office in the jurisdiction they do business in.
Rocket Lawyer also provides document storage, personalized forms for various types of contracts or agreements, and access to attorneys specializing in different areas of law. People use Rocket Lawyer’s suite of products and services for taxes, wills and trusts, and intellectual property protection as well.
LegalZoom specializes in forming corporations and LLCs quickly and cheaply while providing access to attorneys who can advise on any legal issue.
Products and Services Offered by Rocket Lawyer and LegalZoom
Rocket Lawyer and LegalZoom are quite similar in their registered agent service offerings, but they do have their differences.
Rocket Lawyer allows you to create an LLC, S-Corp, C-Corp, or Nonprofit in any state you need to register. They also offer a registered agent service and handle all of the paperwork for you. They also offer copyright and trademark protection, business and tax advice, document storage services, and the ability to review and edit documents created by their attorneys.
LegalZoom offers a similar range of services but with more emphasis on forming LLCs and corporations as quickly as possible. They provide many of the same residual services, but they also offer patenting and business licensing services.
Company Health and Stability of Rocket Lawyer and LegalZoom
Rocket Lawyer has helped over 20 million businesses and individuals since its formation in 2008, and it has been voted one of the best online legal services around. In 2021, the company announced a $223 million round of funding from venture capital firms and industry leaders.
LegalZoom is a publicly traded company with a market cap of $1.61 Billion. For over 20 years, they’ve helped millions of customers with their legal needs.
An increasing amount of people are starting online businesses, gaining awareness of the value of structuring their finances, and protecting their intellectual property in a digital landscape. But these people aren’t necessarily becoming business law aficionados. So, online services like Rocket Lawyer and LegalZoom will only become more popular as the digital revolution continues.
Rocket Lawyer vs. LegalZoom Pricing Comparison
Of course, pricing is a primary focus for most customers (especially when most companies offer the same basic services). Let’s take a look at the different pricing models of Rocket Lawyer and LegalZoom.
Pricing Structure of Rocket Lawyer and LegalZoom
When it comes to getting started with a business, Rocket Lawyer and LegalZoom both offer extensive services that can help you file formation documents in any state. However, the two differ in their pricing plans, so whatever your budget is for this particular service may decide which one to choose.
With Rocket Lawyer, you have the choice between membership or non-membership services. Non-members can purchase legal documents and pay as they go, while members can access exclusive discounts for only $39.99 per month.
What we love about LegalZoom is that you pay only for the services you need. Since the company doesn’t offer monthly memberships, you can save a lot of money if you only need help setting up specific functions within your company.
With both Rocket Lawyer and LegalZoom, you can also get assistance with family and personal legal matters. With a monthly membership to Rocket Lawyer, these services are included in your subscription fee. For non-members, the cost is on a per-document basis. On the other hand, LegalZoom does not offer memberships, so each service must be purchased separately.
It’s also worth noting that there is some lack of transparency with Rocket Lawyer.
Rocket Lawyer claims their service is worth $479.88 annually, but the number is slashed and replaced with $239.99 for their annual membership.
Customers can also sign up for a seven-day free trial. Upon clicking the $239.99 per year hyperlink and navigating their payment portal, we also noticed a disclaimer that stated a billing of $399 per year, which seems confusing and misleading.
The company’s registered agent services are available as an add-on. Non-members can purchase this service as a standalone offering for $149.99, but subscribers get 25% off.
LegalZoom is much more straightforward. The company offers a range of business formation plans that begin at just $79 for an LLC. The price will change depending on what type of company you are looking to launch, but these rates are competitive. An extra fee is also incurred when filing the final documents with your state government.
Other services can be purchased on an as-needed basis as follows:
- Legal Documents and Filing: $59 per document or $7.95/month for unlimited.
- Document Review: $39 per document
- Private Consultations: $375 for unlimited 30-minute consultations with attorneys
- Intellectual Property Applications: Starting at $179 per application (up to $2,400)
For $299 per year, they offer registered agent services without any caveats. This includes their registered agent service, mail forwarding, document storage, and $1 million in identity theft protection.
Cost Comparison of Rocket Lawyer and LegalZoom
Rocket Lawyer offers a seven-day free trial, meaning that users can cancel if they aren’t satisfied with the product after seven days. However, there’s a catch—you have to remember to cancel, or else they’ll bill for an entire year at $399 per year (or $39.99 per month) rather than the advertised price of $239.99.
However, Rocket Lawyer offers standalone registered agent services for non-members at $149.99 per year, making it much cheaper than most of LegalZoom’s plans.
LegalZoom offers registered agent services for a flat fee of $299 per year with no free trial. There are no upsells or hidden costs, unlike Rocket Lawyer, whose confusing pricing leaves customers often paying more than advertised. Of course, LegalZoom’s a la carte pricing will probably cost more depending on your exact needs, but the organization and transparency of their pricing model make it much easier to budget and plan for services.
Trials and Guarantees for Rocket Lawyer and LegalZoom
As mentioned, Rocket Lawyer offers a free trial period with no strings attached. If you cancel within seven days, you will not be charged. But if you forget to cancel, they will bill for a full year at $399.
LegalZoom doesn’t offer any kind of free trial, so you’re on the hook for the $299 whether you like the service or not. However, LegalZoom does provide a 60-day satisfaction guarantee, unlike Rocket Lawyer’s services, which do not come with any kind of guarantee.
Rocket Lawyer vs. LegalZoom: Core Criteria Comparison
Beyond pricing, there are plenty of factors that go into making a decision when it comes to choosing an online legal service. Some businesses may need a particular type of document or access to specific legal services, while others may want lawyers available with their subscriptions.
Let’s examine the core criteria below to compare Rocket Lawyer and LegalZoom.
Ease of Use — Rocket Lawyer Wins
If you wanted to know everything about business law, you would have become a lawyer yourself. Of course, business owners assume the responsibility of knowing the basics and maintaining compliance. Still, the actual process of forming an LLC or setting up a corporate structure can be complicated and time-consuming.
Rocket Lawyer’s layout is user-friendly, and guided instructions and step-by-step explanations make the process much easier. The platform has an extensive knowledge base that teaches you how to file forms and answer questions about business law, so you can do it yourself confidently.
LegalZoom’s platform is made for convenience and speed. It’s more straightforward than Rocket Lawyer and offers plenty of helpful information, but it doesn’t have the same guided approach to filing documents. This means you might need to do more of the work yourself, which might be challenging.
Web User Interface — LegalZoom Wins
Mobile apps are essential, but website navigability plays a significant role in whether you can use the service. Since the website is the first point of contact for most users, it’s one of the most important elements to critique.
Its outdated website design is among our least favorite elements of Rocket Lawyer’s platform. Despite the user-friendly features and abundant valuable information, it’s cluttered and difficult to navigate. The platform’s search feature and sitemap are cumbersome, and it can be hard to find the information you need.
LegalZoom, on the other hand, boasts a modern and attractive user interface. The company has invested heavily in making its website more intuitive, and they have been successful so far. You can easily find what you’re looking for within minutes, and their blog posts, videos, and other online content are both readily accessible and digestible.
Mobile App — Rocket Lawyer Wins
The majority of people will need to manage their business filings and documents while on the go. Having a solid mobile app is an absolute must.
Rocket Lawyer offers a fully-functional mobile app that syncs with the desktop version of their platform, so you can stay organized and up to date from anywhere. The app is available for both iOS and Android devices, and users can create contracts, register new businesses, and communicate with legal professionals in real-time.
LegalZoom’s mobile app is sufficient, but it doesn’t have the same features as Rocket Lawyer. The app has basic document filing capabilities but isn’t as built out as its competitor.
Customizability and Service Offerings — LegalZoom Wins
Every business has different needs, and the ability to customize services to fit those needs is key. On the one hand, adding standalone services can be a great way to get the specific help you need without paying for extra features you don’t. On the other hand, comprehensive service packages can save time and money in the long run.
When it comes to setting up an LLC, both Rocket Lawyer and LegalZoom provide basic business formation services that involve filling out paperwork in the state of your choosing. However, each company offers something unique: while LegalZoom provides a banking resolution to help you open a savings or checking account for your business, Rocket Lawyer’s exclusive addition is physical copies of all your filing documents.
When it comes down to it, Rocket Lawyer’s $39.99 monthly service offers plenty of excellent services, including free consultations with lawyers and the ability to access documents and contracts online. It also gives customers unlimited access to its vast library of legal templates. But paying for standalone services is a much better option for businesses that need specific help regarding taxes and formation without strings attached.
Customer Support — Rocket Lawyer Wins
As any business owner knows, time is money. It should not be wasted on trivial matters or paperwork. Quality customer service is always important, especially when dealing with something as serious as a business filing.
Rocket Lawyer and LegalZoom are so successful thanks to their comprehensive support systems. But like any large company, they might still miss some disgruntled clients because of the sheer volume of customers they serve.
LegalZoom’s customer support is available longer (including weekends), but Rocket Lawyer goes the extra mile to ensure that their customers are taken care of. The ability to ask a lawyer questions and get a response within the same day sets Rocket Lawyer apart, and we’ve found their customer service to be much more helpful.
Final Verdict — LegalZoom Wins
Ultimately, the business formation service you choose will depend on your company’s specific needs. Both Rocket Lawyer and LegalZoom offer comprehensive services at competitive prices, but LegalZoom’s ability to hand-pick the files and services you need ensures that you aren’t overpaying for unused features. Even if it ends up costing more, LegalZoom’s transparent pricing makes it easier to budget for, and you won’t find any surprise fees on your bill.
That said, Rocket Lawyer has superior customer support, knowledge base, and mobile app capabilities, making it the perfect choice for users who need help organizing their paperwork from anywhere. It’s a great way to get extra guidance without having to pay for every little detail.
Source: quicksprout
Rocket Lawyer vs. LegalZoom