The Quick Verdict
LegalZoom is best for people who want a big, familiar name and don’t mind paying more for extra legal services down the road. Rocket Lawyer is best for people who want ongoing access to attorney advice and a library of legal documents, not just a one-time LLC filing.
If your only goal is to form an LLC or corporation as cheaply and cleanly as possible, both of these companies will cost you more than you expect once you look past the headline price. They’re legal services companies first and formation services second — and that shows up in how they’re priced.
What Each Service Offers
LegalZoom
LegalZoom launched in 2001 and is one of the oldest names in online legal services. It has formed millions of businesses over the past two decades and is probably the most recognized brand in this space, mostly from years of TV and online advertising.
LegalZoom’s LLC formation packages typically break down like this:
- Basic — Around $0 to $49 plus your state’s filing fee. Covers the articles of organization (the document that officially creates your LLC) and basic name check.
- Pro/Standard — Around $249 plus state fee. Adds an operating agreement (the internal document spelling out how your LLC is owned and run) and an EIN (your business’s tax ID number).
- Premium — Around $299+ plus state fee. Adds expedited processing and some compliance tools.
What’s not included: registered agent service (the person or company legally required to receive official mail and lawsuits on your business’s behalf) runs about $249/year after a free first-year trial in some packages. Worldwide Express Shipping, extra copies of documents, and add-on legal consultations through their subscription legal plan (roughly $39.99/month) all cost extra.
Filing speed depends on the state, but LegalZoom’s standard processing is not fast. Expedited filing is an upsell in most packages.
Rocket Lawyer
Rocket Lawyer, founded in 2008, positions itself less as a formation company and more as a legal subscription service. Its core product is a monthly membership — around $39.99/month — that includes one business formation, access to a large library of legal document templates, and discounted attorney consultations through its network of “On Call” attorneys.
You can also form an LLC without the membership, but the one-time price (often around $99 plus state fee) isn’t always clearly advertised up front — the membership is pushed harder on the site because that’s Rocket Lawyer’s real business model.
What’s not included in the base membership: registered agent service is a separate paid add-on, and many document types and legal features are locked behind the ongoing subscription. If you cancel the membership after forming your LLC, you lose access to the tools you may have relied on to draft your operating agreement or handle compliance.
Both companies file in all 50 states. Neither is known for being fast — if speed matters to you, that’s worth knowing upfront.
What We Like
Brand recognition and support infrastructure. Both companies have large customer service teams, phone support, and years of institutional experience handling formations. That matters if you want to talk to a live person when something goes wrong.
Rocket Lawyer’s attorney access is a real differentiator. If you anticipate needing ongoing legal help — reviewing a contract, answering an employment question — the subscription model gives you a channel to a real attorney at a lower cost than paying hourly rates. Most formation-only companies don’t offer this at all.
LegalZoom’s document library and add-ons are genuinely broad. Trademark registration, business licenses research, compliance reminders — LegalZoom has built out a wide menu of legal products beyond just formation, which can be convenient if you want one vendor for multiple needs.
Both companies are established enough to not disappear. Newer, cheaper formation companies come and go. LegalZoom and Rocket Lawyer have been around long enough that you’re not taking a risk on a company vanishing mid-filing.
Name availability and basic compliance guidance is built in. Neither company will let you accidentally pick a name that’s already taken in your state without at least a basic check first.
What Could Be Better
Here’s where we have to be honest: neither of these companies is priced or structured to be your best value option, and the user complaints back that up.
The upsells are aggressive. Both companies use a “free” or “low-cost” headline price to get you in the door, then walk you through a checkout flow that adds registered agent service, expedited filing, operating agreements, EIN registration, and compliance tools one screen at a time. By the time you’re done, a “$0 LLC” from LegalZoom can easily run $300-$500 once state fees and add-ons are included. Rocket Lawyer’s membership model has the same effect — the $39.99/month fee adds up fast if you don’t cancel promptly.
Auto-renewal and cancellation complaints show up repeatedly. On Trustpilot, the Better Business Bureau, and Google reviews, a recurring theme for both companies is difficulty canceling subscriptions or registered agent renewals, and being charged again without clear warning. This isn’t universal, but it’s common enough that you should read your order confirmation email carefully and put a calendar reminder before any renewal date.
Processing speed is slower than newer competitors. Companies built purely around formation — without the legal-services overhead — often file faster because that’s their entire focus. LegalZoom and Rocket Lawyer are juggling a much broader product line, and standard filing times reflect that.
Registered agent pricing jumps after the first year. Both companies offer a free or discounted first year of registered agent service, then bill at close to $250/year afterward. That’s on the higher end of the market.
How It Compares
| | LegalZoom | Rocket Lawyer | Northwest Registered Agent |
|—|—|—|—|
| Starting price | $0-$49 + state fee | $99 + state fee (or $39.99/mo membership) | $39 + state fee |
| Registered agent (year 2+) | ~$249/year | Separate add-on, pricing varies | $125/year, flat |
| Filing speed | Standard, slower | Standard, slower | Generally faster |
| Attorney access | Add-on legal plan | Included with membership | Not offered |
| Upsell pressure | High | High (subscription model) | Low |
| Support | Phone, chat, large team | Phone, chat, attorney network | Phone, known for direct answers |
LegalZoom wins if you want one company for formation plus a wide menu of other legal products, and you’re comfortable paying more for that convenience. Rocket Lawyer wins if ongoing attorney access is genuinely valuable to your situation — a lot of small business owners never touch that feature, so don’t pay for it if you won’t use it. Northwest, included here for context, tends to win on pure price transparency and fewer upsells, though it doesn’t offer attorney consultations.
Pricing Breakdown
LegalZoom true cost example: Basic package advertised at $0 + state fee sounds appealing, but most people end up adding an operating agreement ($99), EIN service ($79, though this is free if you do it yourself directly with the IRS), and registered agent service (free year one, then ~$249/year). Realistic first-year total: $300-$450 depending on your state’s filing fee.
Rocket Lawyer true cost example: The $39.99/month membership adds up to nearly $480/year if you keep it running. Many people sign up, form their LLC, and forget to cancel — paying for months of a subscription they’re not using. If you cancel right after formation, your real cost is closer to $40-$80 plus state fee, but you lose access to the document library and attorney network you signed up for in the first place.
Hidden fees to watch for with both: expedited processing fees, physical document shipping fees, “rush” name reservation fees, and registered agent auto-renewal at a higher year-two price. Read the checkout screen line by line before you click through.
Who Should Use This Service
Best for:
- Someone who wants a well-known brand name and doesn’t mind paying a premium for it
- Someone who anticipates needing attorney consultations regularly (Rocket Lawyer)
- Someone who wants one vendor for formation, trademarks, and other legal document needs (LegalZoom)
Not ideal for:
- Anyone trying to minimize cost — you’ll pay more here than with formation-focused competitors
- Anyone who wants a simple, transparent, one-time price without a subscription or upsell flow
- Anyone in a hurry — neither company is known for fast turnaround
FAQ
Is LegalZoom or Rocket Lawyer cheaper?
On paper, LegalZoom’s basic tier and Rocket Lawyer’s one-time formation price look similar. In practice, Rocket Lawyer’s real cost depends on whether you keep the membership running, which can make it more expensive over time. LegalZoom’s cost depends on how many add-ons you accept during checkout.
Do I need the Rocket Lawyer membership to form an LLC?
No. You can pay a one-time fee, but it’s priced to make the membership look like the better deal, which is a deliberate sales design.
Can I use either service in every state?
Yes, both file in all 50 states.
How fast will my LLC actually be approved?
It depends on your state, not just the company you use. Both LegalZoom and Rocket Lawyer offer expedited processing for an extra fee, but standard processing with either can take one to several weeks depending on your state’s backlog.
Will I get stuck paying for registered agent service I didn’t want?
Both companies include a free first year in some packages, then auto-renew at their standard annual rate unless you cancel. Set a reminder.
Do these companies offer refunds if I change my mind?
Both have refund policies, but they’re limited once your state filing has been submitted, since state filing fees are non-refundable. Check the specific terms before you pay.
Our Recommendation
LegalZoom and Rocket Lawyer are both legitimate, established companies — you won’t get scammed using either one. But you will pay more than necessary if your only goal is a clean, one-time LLC or corporation filing, and the upsell flows and subscription structures are designed to add cost at almost every step.
If you want a more straightforward path — clear pricing, no subscription traps, and someone walking you through entity selection, state filing, EIN registration, and ongoing compliance in one place — that’s exactly what we built BusinessFormations.com to do. We help you figure out whether an LLC or corporation fits your situation, file directly with your state, get your EIN, and stay on top of the annual filings that keep your business in good standing. You can [get started here](https://www.businessformations.com/get-started/) and see the full picture of what’s included before you pay anything.