LegalZoom Review

How to Use LegalZoom for Business or LLC Formation

We’ll walk you through, step by step on how to register your business. It’s extremely fast and easy – even if you’ve never done it before.

1. Getting on LegalZoom

Click on the link below to get started with registering your business:

https://www.legalzoom.com/business/business-formation/attorney-assist.html

You’ll see the following:

As you can see, they give you options to create the following entities:

• LLC
• Corporation (Inc)
• Nonprofit

Most people will want to create an LLC. If you’re unsure, it’s likely that you’ll want to make an LLC as that is the standard business entity most people will want to form. It is also the easiest to run and maintain, as there are stricter rules with Corporations and VERY strict rules for Nonprofits.

Each of the 3 entities has a DIY option as well as an option to get attorney help. Using a LegalZoom attorney is still cheaper than hiring one yourself, but is unnecessary. Try to Do it Yourself first to save a few hundred dollars.

In this guide, we’ll move forward by selecting LLC (Do it yourself).

2. Selecting LLC Name and State

Next, you’re prompted to input the name you want for your LLC:

Enter a name – here we’ll just put ‘The Legality’.

After clicking GET STARTED you’ll be prompted to enter the state.

As LegalZoom states, many people choose the same state that they live in. Other popular options are Wyoming and Deleware. If you’re unsure, please consult a lawyer as this is not legal advice, and every case is different.

When you enter the state and hit search, Legal Zoom will check to make sure there is not a registered LLC in that state. If it’s taken, you’ll be prompted to enter a different name or state. If you’re good, they’ll ask for an email so you can “secure your order”, which is optional:

Click “Get my LLC” to move forward.

3. Misc. Questions

Don’t worry, we’re about halfway there. Up next they just have a few more prompts:

• When do you want to launch?
•  Great – let’s make that dream a reality! (hit Continue)
• Is {Company Name You Selected} your first LLC?

Just answer honestly as your answers don’t change the flow or pricing.
Then we’re finally asked something more important –
What does our company do?

You’ll enter some text, and the website will begin to autofill some options.
Then, LZ will ask if your company will have employees in its first year. For the purpose of this guide, we’re going to select “No”. Then, you’ll be shown some things that you need to successfully create the LLC:

It’ll first direct you to select a registered agent, covered int he next section.

4. LegalZoom Registered Agent

LegalZoom’s Registered Agent Services lets this premier legal service provider accept and store all your legal documents and allow you to view them online. With all your documents online, you’ll never miss a thing.

Like all business owners, you get important legal documents delivered by mail or served in person. However, most states require you to have a registered agent (RA) – a third-party who receives those documents on your behalf.

You CAN be your own registered agent, but there are legal implications and heavy fines if you mess up.  For example, you need a physical location and be able to have a representative on site during normal business hours, Monday through Friday.

Here is why it’s beneficial to LegalZoom as your RA:

• A Registered Agent ensures that you receive filing notifications from the state’s agencies, helping you avoid penalties.
• It gives you the freedom to run your business without interference when receiving items by mail.
• It offers a layer of privacy as the public record shows your RA’s address.
• LegalZoom offers you unlimited storage space to enable you to upload and store all your important legal documents in one place.

Selecting “Continue With Legal Zoom” means you’ll use them, which costs additional money. They are cheaper than most services and we recommend you use them if you want to save money and not be fined.

5. Selecting Your Documents

Next, you’re shown the following options:

There IS an option to not select any of these at the bottom, but we only recommend that if you are experienced in writing operating agreements.
If you’re selling physical goods you’ll want the RIGHT MOST option – ‘Operating Agreement, EIN, and Licenses’. If not, you can simply get an Operating Agreement – it’s easy to get your EIN for free so there is no need to select the middle option.

You’ll then be asked some misc. questions, which are actually upsells by the site. We hit no thanks to all of them since we’re just a website.

6. Choosing Your Package

Don’t worry, we’re almost done. Now it’s time to select the package you want, based on how fast you need your corporation. You’ll see the image below:

If you’re not in a rush, just choose Economy. It’s by far the cheapest. Notice the + $70 in this case – that’s the standard price to file. Each state has its own fees to incorporate and maintain the business so your number may be different. Select the option you want (we went with Economy).

Checkout and Payment

If you just selected economy and you followed all of our selections, you’ll then be prompted to checkout for the cheapest option possible. While this is what we chose during this guide, this is not legal advice for selecting any choice during registration – you must make your own decisions that make sense for your business and location. If you are unsure, it is best to consult a Lawyer.

After paying you’re officially done. Congratulations!

Make sure to get your EIN from the IRS and wait 2-5 weeks to get your papers.

Overall, setting up your business entity can take 15-30 minutes just from using our guide as you’ve seen. Below are more important things to know about the offers LegalZoom has and how it can be used for your business.