Economic data from October 2020 has revealed that new and independently owned businesses accounted for more than 65% of new job openings between 2000 and 2019. This resulted in more than 37 million small businesses, with fewer than 500 employees, according to the United States Small Business Administration (SBA) contributing to the overall economic growth taking place in the U.S.

The data compiled by the SBA reveals a striking image of how important small businesses are to the American economy, and the large role they play in employing American citizens. The rise of startups across the world has seen a sharp increase in new business formations taking place, and although the U.S. still holds firm to having the best startup environment to date, young entrepreneurs are seeking easier and more convenient ways to form their new Limited Liability Companies (LLCs). We looked at what formation service provider, LegalZoom has to offer and if some of the LegalZoom alternatives is a better choice?

LegalZoom: A Brief Overview

Although LegalZoom has been around since 1999, the company has seen some notable strides in their time, offering entrepreneurs an affordable and convenient service to help them file and form their new LLC.

Some critics within the industry have raised concern in recent years over the lack of services and product offerings LegalZoom has brought on in the digital age, but as the company pursues to bring clients the best customer service, it's become clear that the service provider is more client-focused as compared to some LegalZoom alternatives.

The company covers a range of industry-related services that have been designed to meet the needs of new-age clients. These services include: beyond LLC formation, incorporation services, registered agent services, and Employee Identification Number acquisition, to name but a few. Overall, it's clear that LegalZoom has an offering for nearly every type of business owner and entrepreneur.

Using LegalZoom: The good and the bad

Like many other formation service providers, there are both positive and negative aspects to each of them. Although each is unique in its offering, the final consideration should be based on client needs and resource availability.

The good of LegalZoom

• Dedicated online customer service and assistance.
• Business name search engine.
• Tier-priced system.
• 100% money-back guarantee.

The bad of LegalZoom

• Prices aren't competitive and can be more expensive than other formation service providers.
• Smaller packages or subscriptions will only cover a limited amount of services and features.

What does LegalZoom offer above other competitors?

Because the services and features rendered by each of these companies are so closely related, one will need to look closely to find differences in the offerings housed by each. Compared to other market or industry contenders, LegalZoom has one major aspect that sets them aside from others - their longstanding history and reputable reputation.

LegalZoom has been around for more than 20 years, and have helped thousands of new business owners form their new LLC ventures. Because LegalZoom has been around for such a long time, they have a longstanding relationship within the industry, previous clients, and of course have a plethora of knowledgeable employees. In this regard, we can see that experience can somewhat triumph over affordability.

Why should you form an LLC with LegalZoom?

The company has years of experience, and have been well-equipped with the knowledge and know-how of the industry. More so, their service offering is focused to provide the best possible experience from start to finish for every client, making customer satisfaction their number one priority.

There are of course LegalZoom alternatives that might suit the needs and budget of entrepreneurs better, but overall they have gained trust in the industry which others may lack.

The Verdict

Whether you're looking to start a Limited Liability Company or incorporate your new business ventures, LegalZoom has been around for more than two decades and have gained trust and experience in an industry that can help set up entrepreneurs for success. Finally, depending on the needs and requirements of each customer, there are services and features solely offered by LegalZoom which might come at an extra cost but will be difficult to find with other leading formation service providers.