Bizee and LegalZoom have transformed how entrepreneurs start their businesses. LegalZoom has served over 4 million customers since 2001, and Bizee has helped more than 1 million since 2004.
These services want to make business formation simple, but they work quite differently. Bizee's Basic Package costs $0 plus state fees and includes a free registered agent for the first year. LegalZoom's packages are more expensive, starting at $79 and going up to $649. They also charge $249 yearly for registered agent services.
The two companies have other important differences. Bizee files your business documents the next day with all packages. LegalZoom takes longer, usually 5 to 14 days to process everything. Understanding these differences is vital for entrepreneurs to pick the right service for their needs.
Bizee vs LegalZoom: Core Formation Services Compared
Entrepreneurs need to look past simple pricing to get into what Bizee and LegalZoom actually provide for business formation. These companies have detailed business formation packages that show notable differences in features, processing times, and extra services.
Basic Formation Package Features
Bizee and LegalZoom help form various business entities like LLCs, C Corporations, S Corporations, and nonprofits in all 50 states [1][2]. Their entry-level packages are quite different. Bizee's Basic Package costs $0 plus state fees and has Articles of Organization filing, name verification, and free registered agent service for the first year [3]. LegalZoom's Economy package gives you simple formation documents but doesn't include registered agent service [4].
Document Processing Timeframes
Processing speed is a vital difference between these providers. Bizee wants to process formation documents within 1 business day after getting your order [1][5]. LegalZoom takes 5 to 14 days [2]. LegalZoom's turnaround depends on your package choice - Economy (30 days), Standard (15 days), and Express Gold (7-10 days) [3]. Note that state processing times apply after either service submits your paperwork.
Registered Agent Service: Pricing and Features
Legal business entities need a registered agent who receives important legal documents and stays available during business hours [6]. Bizee gives you a free year of registered agent service with all formation packages, even their Basic $0 plan [3]. This service costs $119 yearly after the first year [2]. LegalZoom's registered agent service costs $249 per year with no free period [3]. Both services manage document reception, compliance monitoring, and forward important paperwork.
State Filing Fee Handling
Whatever provider you pick, you'll need to pay state filing fees. Each state has different fees that add to any service package prices. Bizee's Basic Package only requires the state filing fee since their service costs nothing [1]. Notwithstanding that, their premium packages need both service and state filing fees. LegalZoom works the same way - you pay their service fee plus the state's filing fee [7].
The comparison shows Bizee has clear advantages in processing speed and included registered agent service, which makes it attractive for budget-conscious entrepreneurs.
Pricing Structure Analysis: Which Offers Better Value?
The price structure's true value plays a significant role in choosing a business formation service. Bizee and LegalZoom both have tiered packages with distinct differences in what you get for your money.
Basic Plan Cost Breakdown ($0 Offerings)
These companies provide entry-level formation services for $0 plus state fees [1]. Bizee's simple package has free registered agent service for the first year (a $119 value) [1]. LegalZoom's basic plan doesn't include registered agent service and charges an extra $249 yearly [8]. Bizee processes orders in one business day [9], while LegalZoom's basic plan only guarantees 30-day processing [8].
Mid-Tier Package Comparison
The mid-range offerings show bigger differences. Bizee's Standard package costs $199 plus state fees and has an EIN, operating agreement, banking resolution, business bank account, and tax consultation with faster filing in most states [1]. LegalZoom's Pro package costs $249 plus state fees and has a custom operating agreement, EIN, and unlimited eSignatures for 12 months [1]. Bizee's mid-tier package delivers more business essentials at $50 less.
Premium Package Features Worth the Price?
The premium offerings from both companies cost $299 plus state fees [1]. Bizee's package has everything in their Standard package plus faster filing, web domain, business email address, and business contract template access [1]. LegalZoom's Premium plan focuses on legal support with attorney guidance and 30-minute legal consultations [1]. Your choice of premium package should depend on your need for legal guidance or business tools.
Hidden Fees and Additional Costs
Package prices don't tell the whole story. State filing fees vary by location and both services require these payments [1]. LegalZoom charges $249 yearly for registered agent service [10], while Bizee costs $119 per year after the first free year [11]. Trademark registration costs $299 with Bizee and $599 with LegalZoom [10]. Annual report filing costs $99 from both providers [10], and business license research starts at $99 [12].
Bizee provides better overall value for entrepreneurs who want affordable formation with essential business tools.
Registered Agent Services: Critical Differences
Registered agent services are a basic legal requirement for every business entity. Bizee and LegalZoom take different approaches that affect both cost and convenience for entrepreneurs.
First-Year Free vs Paid Options
Bizee makes a strong first impression by giving away free registered agent service for the first year with all formation packages, including their $0 basic tier [1]. New businesses can quickly establish their legal presence without extra costs. LegalZoom's approach differs as they charge for registered agent services right from the start, with no free trial period [1]. This is a big deal for startups with tight budgets since registered agent service is required to stay legally compliant with the state [13].
Annual Renewal Pricing ($119 vs $249)
Bizee charges $119 annually after your free first year [1]. This price aligns with what most companies charge for similar services [2]. LegalZoom just needs $249 per year for the same core service [1], making them one of the most expensive registered agent providers available [2]. Both companies offer similar basic registered agent functions, but the $130 yearly price difference can really add up for small businesses over time.
Document Handling and Notification Systems
Both services handle and process legal documents, but their notification systems work differently:
Bizee provides:
- Digital scanning with email notifications for all documents [1]
- SMS text alerts for especially important documents [1]
- Lifetime company alerts for compliance deadlines [1]
- A personalized dashboard for document management [1]
LegalZoom scans virtual mail for digital delivery and monitors compliance with alert systems for tax and annual report deadlines [1]. On top of that, it has unlimited cloud storage for business documents as part of their service [1].
Quick notification delivery is vital for time-sensitive legal matters. Bizee's instant notifications through multiple channels (text and email) give business owners an edge [7]. This ensures they never miss critical correspondence that could affect their company's standing.
Additional Features
Both Bizee and LegalZoom go beyond basic formation and registered agent services to give you extra features that will shape your business setup experience.
Banking Support
Financial organization matters a lot for new businesses, and both providers know this well. Bizee helps build financial credibility by setting up business banking from day one with a one-time payment and no monthly fees [4]. LegalZoom takes a different approach and just connects you with banking institutions, which often leads to unwanted sales calls instead of real help [2]. International business owners should note that banks have different fee structures and minimum balance requirements, so you'll need one that can handle international transfers [14].
Virtual Address
You can get a virtual address service from Bizee for a small monthly fee [4]. Remote business owners and those without a physical location find this service really helpful. LegalZoom doesn't directly offer virtual address services, but they stress that foreign entrepreneurs need a U.S. address.
Service for Non-Residents
Both services let non-U.S. residents start their businesses. Bizee clearly states that foreign persons can own an LLC in the U.S. without living there [6]. They help you deal with state-specific rules and keep up with U.S. regulations. LegalZoom makes it easier to get an EIN by filling out paperwork correctly so it won't get rejected [14].
Upsale Pressure
These companies handle extra services quite differently. Bizee keeps things simple with reasonably priced add-ons: $99 for Business License Search, $99 for DBA filing, and $199 for Trademark application filing [2]. LegalZoom bundles many upsells into packages and makes customers say no multiple times to offers. They push their Legal Protect Plan, Total Compliance package, and business tax consultations that mostly turn into sales pitches from other companies [2].
Business Compliance and Legal Support
Business owners face ongoing challenges to stay compliant with state and federal regulations after forming their company. Bizee and LegalZoom provide support services that guide entrepreneurs through these requirements.
Annual Report Filing Services
Good standing requires regular state filings. Both Bizee and LegalZoom charge $99 for annual report filing services [3]. Their compliance reminder systems work quite differently though. Bizee's formation packages come with lifetime compliance reminders at no extra cost [12]. You'll get automatic alerts when tax and annual report deadlines are approaching [3]. LegalZoom's Compliance Calendar costs an extra $69 yearly [3]. It sends deadline notifications by phone or email.
Operating Agreement Creation
Operating agreements are the foundations of business operations. Some common templates are free with Bizee, while their $299 Premium Package has premium access to their Business Contract Library [12]. LegalZoom packages come with operating agreement templates. They pride themselves on attorney-reviewed documents throughout their services.
Business License Research
Legal operation depends on having the right licenses and permits. Bizee's Business License Research Package costs a flat $99 [12]. This helps entrepreneurs find all local, state, and federal permits needed to comply with laws. Bizee explains this service helps avoid potential penalties [12]. LegalZoom's documentation doesn't detail their approach explicitly, but business license research is part of their broader compliance services.
Legal Consultation Availability
The biggest difference between these services shows up in legal consultation access. LegalZoom has an extensive library of educational resources written by legal experts. These cover everything from trademarks to taxes [3]. They also connect customers with qualified experts, including tax professionals and attorneys who can represent you in person [5]. Bizee does things differently. They give everyone a free 30-minute tax consultation, whatever their business formation status [12].
Both services want to help you avoid the potential risks of non-compliance. These can range from late fees to complete business dissolution [15].
User Experience and Customer Support Quality
Customer interaction and digital experience shape how business owners notice formation services. Let's get into how Bizee and LegalZoom match up in these key areas.
Platform Interface and Usability
Bizee's accessible interface guides entrepreneurs through the formation process smoothly. Their dashboard makes it easy to find important business documents and filing updates [16]. LegalZoom's website looks sleek and modern, but you'll need to click through several pages to find what you need. This can make the whole process more complicated.
Support Hours and Availability
Both companies give you multiple ways to reach them:
- Bizee: Phone, email, and live chat support available Monday-Friday from 9 AM to 6 PM CST [1]
- LegalZoom: Extended hours with phone, email, and live chat support Monday-Friday from 5 AM to 7 PM PST, plus weekend availability from 7 AM to 4 PM PST [1]
LegalZoom stands out with longer support hours, especially when you have weekend availability.
Customer Satisfaction Ratings, Trustpilot, Reddit Reviews
Bizee scores 4.6-4.7 out of 5 on Trustpilot from over 21,000 reviews [17]. LegalZoom rates slightly lower at 4.2-4.4 out of 5 from about 17,000 reviews [17]. Reddit users generally speak well of Bizee, though some mention upselling attempts [18].
Common Issues and Reported Problems
Both services face criticism for pushing too hard with upselling [19]. Some Bizee customers talk about delays during busy filing seasons [16], while others point out EIN processing delays [18]. Most problems pop up during complex business formations or when customers make mistakes while entering information [17].
Mobile Access Options
Right now, neither company shares much about their mobile options. Users say Bizee's platform works well on mobile devices and praise how it adapts to different screen sizes [3]. LegalZoom also works on mobile, but neither company heavily promotes specific mobile apps.
Comparison Table
| Feature | Bizee | LegalZoom |
|---|---|---|
| Simple Package Price | $0 + state fees | $79 + state fees |
| Premium Package Price | $299 + state fees | $299 + state fees |
| Processing Time | Next-day business filing | 5-14 days (varies by package) |
| Registered Agent Service | Free first year, then $119/year | $249/year (no free period) |
| Document Processing | 1 business day | Economy: 30 days Standard: 15 days Express Gold: 7-10 days |
| Annual Report Filing | $99 | $99 |
| Compliance Alerts | Lifetime compliance reminders included | $69/year for Compliance Calendar |
| Support Hours | Mon-Fri, 9 AM - 6 PM CST | Mon-Fri, 5 AM - 7 PM PST Weekends 7 AM - 4 PM PST |
| Trustpilot Rating | 4.6-4.7/5 (17,000+ reviews) | 4.2-4.4/5 (3,000+ reviews) |
| Business License Research | $99 flat rate | Included in compliance offerings |
| Trademark Filing | $299 | $599 |
| Banking Support | Direct business banking setup | Banking partner referrals |
| Virtual Address | Available (subscription-based) | Not specifically mentioned |
| Non-Resident Support | Explicit support for foreign owners | Available with EIN assistance |
Conclusion
Bizee stands out as the budget-friendly and quickest way for entrepreneurs to start their business. The company offers a $0 basic package with next-day processing and free first-year registered agent service. This provides great value when compared to LegalZoom's higher-priced services.
LegalZoom has decades of experience and complete legal support options. Their extended processing times and steeper costs for core services make them less attractive to budget-conscious owners. The registered agent fees tell the story - $249 versus Bizee's $119 per year. On top of that, Bizee's easy-to-use interface and lifetime compliance alerts make it a more user-friendly service.
Your choice between these providers comes down to your specific business needs. Entrepreneurs who want quick, affordable formation with simple business tools will find Bizee's efficient services ideal. Business owners who need extensive legal consultation and can afford premium prices might prefer LegalZoom's complete legal support.
Both services help entrepreneurs launch their businesses successfully. However, Bizee's mix of speed, affordability, and included features makes it the better choice for most small business formations.
FAQ
Bizee offers a $0 basic package plus state fees, including free registered agent service for the first year. LegalZoom's packages start at $79 and can reach $649, with a separate $249 annual fee for registered agent services. Bizee generally provides faster processing times and more included features at lower price points.
Bizee provides free registered agent service for the first year and charges $119 annually thereafter. LegalZoom charges $249 per year for registered agent service with no free period. This makes Bizee a more cost-effective option for most businesses needing this essential service.
Bizee aims to process formation documents within 1 business day after receiving your order. LegalZoom's processing time typically ranges from 5 to 14 days, depending on the package selected. This significant difference in speed can be crucial for entrepreneurs looking to start their businesses quickly.
Both services provide various add-ons, but their approaches differ. Bizee offers reasonably priced add-ons like business license searches and trademark filings. LegalZoom tends to bundle numerous upsells into packages and may require customers to decline offers multiple times during the process.
Bizee maintains a slightly higher customer satisfaction rating on Trustpilot, with a 4.6-4.7 out of 5 rating based on over 17,000 reviews. LegalZoom scores a 4.2-4.4 out of 5 rating from approximately 3,000 reviews. Both services receive some criticism for upselling strategies, but overall customer feedback tends to be positive.
References
[1] - https://venturesmarter.com/bizee-vs-legalzoom/
[2] - https://www.llcuniversity.com/incfile-vs-legalzoom/
[3] - https://www.smbguide.com/legalzoom-vs-bizee/
[4] - https://bizee.com/
[5] - https://www.howtostartanllc.org/incfile-vs-legalzoom/
[6] - https://bizee.com/articles/bizee-help-another-country-open-llc
[7] - https://www.forbes.com/advisor/business/best-registered-agent-services/
[8] - https://llcbuddy.com/legalzoom-vs-incfile/
[9] - https://howtostartanllc.com/reviews/legalzoom-vs-incfile
[10] - https://www.werockyourweb.com/bizee-vs-legalzoom/
[11] - https://thelawdictionary.org/article/bizee-vs-legalzoom/
[12] - https://bizee.com/articles/is-bizee-better-than-legalzoom
[13] - https://bizee.com/business-management/registered-agent
[14] - https://www.legalzoom.com/articles/how-to-start-a-business-in-the-united-states
[15] - https://bizee.com/business-management/annual-report
[16] - https://boostsuite.com/bizee-llc-review/
[17] - https://www.headwestguide.com/bizee-incfile-vs-legalzoom
[18] - https://www.reddit.com/r/llc/comments/1gwjy0y/bizee_review_is_it_worth_the_money/
[19] - https://startupsavant.com/incfile-vs-legalzoom
For more insights and comparisons on LLC formation services, visit my website at HowStartLLC.com.