LegalZoom has 965 Better Business Bureau complaints about LLC formation. Customers report hidden monthly charges, overpriced registered agent fees around $250 yearly, and bait-and-switch pricing where $79 advertised costs balloon to over $700. Many also face filing delays and poor customer service.
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Here's why you should think twice before using LegalZoom to start your LLC. If you go to the Better Business Bureau website, which is bbb.com, you'll see that there are 965 complaints filed against LegalZoom. And here are some of the most common complaints. The first is that the customer realizes that they signed up for various monthly services that they did not need, and they're having a hard time getting out of those monthly charges. The second is that the customer realizes that they got locked into LegalZoom's registered agent service, which costs $250 a year, which is way way overpriced. The third is that the customer is very unhappy with LegalZoom's customer service and they find it very difficult to get in contact with the company. The fourth is that the customer feels that they were bait and switched, meaning that the LegalZoom's advertised price of $79 ends up being over $700 to get the LLC properly set up. And lastly, the customers are complaining that LegalZoom took way too long to register the LLC or messed up the filing. Overall, my company is pretty grateful to LegalZoom because they bring us business inadvertently when we have to fix the mistakes that LegalZoom made or the mistakes that the customer made when using LegalZoom's service. And if you are going to use LegalZoom, make sure that you read the fine print and know what you're doing when answering the questions.