For legal matters, it can be very costly to pay an attorney. That’s where LegalShield and LegalZoom come in. Both are online legal service providers, helping entrepreneurs start a business and maintain it successfully in compliance with the law.
If you’re considering online legal services, we’ll provide a detailed comparison between LegalZoom vs. LegalShield to help you decide which is a better choice for your small business.
LegalShield or LegalZoom?
- Offers HR services for businesses
- Affordable access to 900+ lawyers
- 24/7 legal assistance
- Various legal services plans
LegalZoom
- Offers per service payment
- Affordable pricing packages
- Provides registered agent services
- Allows online processing
Features of LegalShield and LegalZoom
Offers
LegalZoom
If you’re a business owner looking for assistance with business documents, annual reports, or a go-getter trying to start your non-profit organization, our industry experts recommend LegalZoom as it offers many different legal services, including:
- Business formation services
- Business changes and filing
- Copyright
- Divorce
- Non-profit
- Power of attorney
- Registered agent
- Taxes, contracts, and licensing
- Trademark or business name registration
- Wills and testimonies
LegalShield
LegalShield offers various services, including online and in-person legal assistance, attorney advice, and legal protection. Here are some of the company services, among others:
- Trial defense
- Debt collection letters
- Debt collection services
- Advice and legal consultation
- Legal document review
- Registered agent service
- Resolve financial disputes
- Reduce fines
- Wills and testaments
- Member discounts
Both the two providers offer almost the same services, our industry experts noted that LegalZoom has the edge as they offer registered agent services and business entity formation which LegalShield do not.
Winner: LegalZoom
Pricing
LegalZoom
LegalZoom charges per service, and has no hourly fee. Price may vary depending on the package category your case will fall under. The package includes:
Economy Package (State Filing Fees Not Included)
Services include:
- Articles of organization
- Financial account authorization letter
- Lifetime customer support
- LLC's next step guides
- Business filing and name check
Standard Package (State Filing Fees Not Included)
Services include everything included in Economy plus:
- Deluxe organizer
- LegalZoom VIP processing
- Official certificates and seals
Express Gold Package (State Fees Not Included)
Services include everything under Economy and Standard plus:
- Express shipping
- Rush processing with Secretary of State
LegalShield
LegalShield offers monthly membership plans not just for businesses but also for families and more. What we’re impressed about LegalShield is each plan features various legal coverage available to all customers.
Family Plan
Services include:
- Speeding ticket assistance
- Unlimited contract review and consulting
- Trial defense services
- Uncontested adoption representation, divorce, or separation
- Power of attorney
- Collections, guarantees, and warranties
- Audit legal services
- Demand letters
- 24/7 emergency assistance
Small Businesses Legal Plan
Services include:
- Legal support, advice, and consultation
- 25% member discount
- Five debt collection letters
- Designated consultation
- Legal document review
- Flat fee services
Commercial Driver Plan
Services include:
- Violations defense
- Traffic accident representation
- Hazmat violations and spills
- Inspections
Identity Theft Plan
Services include:
- 24/7 access to the customer service team
- 12-month credit score tracking history
- $1M identity theft protection coverage
- 1-bureau credit monitoring
- Unlimited access to legal consultations
Note: LegalShield offers additional services for each plan, which you can request for an additional cost.
When it comes to pricing, we can clearly see that LegalShield offers more affordable plans for its pre-paid legal service, which you can pay monthly. On the other hand, although LegalZoom offers per service payment, the fees are quite high compared to LegalShield.
Process and Turnaround Time
These two companies have varying processes and turnaround times.
In LegalShield, there’s just a four-step process to start. First, you’ll need to answer some legal questions and tell basic information about your business. After that, the attorney will prepare all your legal documents and file them in your state. The turnaround time may vary depending on your case. But, the review process typically takes 12-24 hours.
On the other hand, with LegalZoom, everything can be done online. Once you have selected a business name, LegalZoom will check to make sure that it is available. After making the payment, LegalZoom will complete all of the necessary steps for you, including filing your paperwork and getting the documents approved by the State.
This procedure can take weeks, depending on the package you choose. In addition to reviewing your paperwork, LegalZoom will also check to make sure that all of the errors are corrected.
If we compare the two companies, we can conclude that LegalShield has the faster review processes, which also means that turnaround time will be quick as well. Though the processing time of LegalZoom is just normal, we still recommend LegalShield.
Differences
If we compare the differences between LegalZoom and LegalShield, both providers offer different payment plans and types of services, including:
- LegalZoom provides numerous legal needs that you can per service, whereas LegalShield offers prepaid legal plans that come with a monthly fee.
- LegalShield offers HR services to businesses that subscribe to their legal plans, while LegalZoom does not offer HR services.
- LegalZoom provides registered agent services while LegalShield does not.
Pros and Cons
LegalZoom
Pros
- No membership fees monthly.
- Available attorney plans if you need more advice.
- Per service pricing which is suitable for businesses that don't need full legal services.
- You can get a copy of all the documents filed on your behalf.
Cons
- No edits and download of any documents.
- Attorney access is not free and does not come with other package options.
LegalShield
Pros
- Unlimited access to many attorneys.
- Trial defense assistance
- Guides you with everything to establish your business.
- Offers member perks and discounts.
Cons
- Quite tricky to cancel a membership.
- Limited law firm options
Customer Reviews
LegalZoom
Most of the complaints about LegalZoom revolved around hidden charges and the lack of clear communication about what could be excluded from the service. As per our researchers, many customers expressed disappointment in getting in touch with LegalZoom’s customer service due to long wait times.
But, despite the negative feedback, some customers noted that the company was able to provide them with the necessary documents and advice they needed in a short time. This is a huge plus for small business owners as it eliminates dealing with multiple companies.
LegalShield
Some negative reviews about LegalShield were about the company’s quality of service. Those who were previously customers of the company noted that they had experienced issues with the LegalShield’s lawyers.
Due to the company’s MLM business (multi-level marketing) model [1], which involves selling products through various marketing channels, LegalShield cannot control how certain aspects of its lawyers are handled.
But still, many people have left positive reviews about LegalShield praising the company’s lawyers for their attention to detail and for providing them with sound advice. They also noted that the company’s prepaid legal services are cheaper than hiring an attorney from outside law firms.
FAQ
What is usually covered in a LegalShield legal plan?
A LegalShield plan can usually cover access to various legal services, such as advice and letters from attorneys.
How long can LegalZoom hold an order?
An order with LegalZoom can usually hold up for a year. If you have questions or are in need of assistance, contact their Customer Care.
Overall Winner: LegalShield
Between LegalZoom vs. LegalShield, our business experts can say that the latter comes as the better option. With all the services they are offering as an online legal service provider and as formal legal counsel, LegalShield makes it easier for people to get the assistance they need at an affordable price.
Now, you can run your small business more efficiently by having unlimited access to lawyers through LegalShield.
