LegalShield vs LegalZoom: Which is Worth Your Money? [2024] (2024)

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?

Best Reliability

LegalShield

Offers HR services for businesses
Affordable access to 900+ lawyers
24/7 legal assistance
Various legal services plans

Check Today's Price

Best Value For Money

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 aboutLegalShieldis 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 itspre-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.

Winner: LegalShield

Process and Turnaround Time

These two companies have varying processes and turnaround times.

InLegalShield, 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.

Winner: 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’sprepaid legal servicesare cheaper than hiring an attorney from outside law firms.

See Also: IDShield vs Lifelock

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

Check Today's Price

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 throughLegalShield.