Starting a business is an exciting venture, but navigating the legal and administrative side of things can be overwhelming.
One of the first major steps in this process is forming your LLC (Limited Liability Company), and the right service can make this a lot easier.
ZenBusiness is one of the most well-known LLC formation services, providing a variety of packages and tools designed to simplify the setup process. Whether you’re an entrepreneur launching your first business or an experienced owner expanding your operations, choosing the right platform can make a big difference.
ZenBusiness has quickly gained popularity due to its affordable pricing, user-friendly interface, and range of services beyond just LLC formation, including EIN acquisition, registered agent services, and more. But, like all services, it has its pros and cons, and what works for one person may not be ideal for another.
In this review, we’ll dive deep into ZenBusiness’s features, customer experiences, pricing, and more, helping you determine if this service is the right fit for your business needs. Before making your decision, be sure to read on for a comprehensive breakdown of everything ZenBusiness offers.
ZenBusiness Review: A Quick Summary
ZenBusiness is an LLC formation service founded in 2015 that has quickly gained popularity for its user-friendly platform and affordable pricing. Based in Austin, Texas, the company aims to simplify the business formation process for entrepreneurs by offering a range of services designed to help new businesses get up and running. ZenBusiness specializes in providing LLC formation services but also offers a variety of add-ons such as operating agreements, EIN acquisition, registered agent services, and business website creation.
One of ZenBusiness’s standout features is its competitive pricing, with a free LLC formation plan that only requires payment of state filing fees. This makes it an attractive option for entrepreneurs on a budget. For those who need more comprehensive services, ZenBusiness offers paid plans that include expedited filing, additional legal documents, and business tools like a domain name, website, and email address.
The company prides itself on its excellent customer support, which is available via chat, phone, and email. ZenBusiness has also gained attention from investors, including Mark Cuban, which adds to its credibility. Despite some upselling and additional fees for premium services, ZenBusiness remains a popular choice for small business owners looking for an affordable, efficient, and reliable way to form their LLC.
The Good
Affordable Pricing
ZenBusiness offers a free LLC formation package, where you only pay the state fees. This makes it a highly attractive option for entrepreneurs who are just starting and looking to minimize upfront costs.
User-Friendly Interface
ZenBusiness has an incredibly easy-to-use platform. Whether you’re a first-time entrepreneur or seasoned business owner, the website simplifies the LLC formation process, guiding you step-by-step. Their intuitive design allows for a smooth experience that avoids the usual confusion of legal paperwork.
Comprehensive Services
Unlike other services that just help you form an LLC, ZenBusiness provides additional tools that are crucial for business operations. From operating agreements to EIN acquisition and registered agent services, they offer a full package.
Strong Customer Support
Customer support is critical, especially when dealing with legal documents and the complexities of business formation. ZenBusiness provides responsive customer service through chat, email, and phone, ensuring you have assistance whenever you need it.
Money-Back Guarantee
ZenBusiness offers a 60-day money-back guarantee on their paid services, excluding state fees. This provides a safety net for customers, allowing you to try the service risk-free.
The Bad
Upselling During Checkout
Some customers have reported feeling bombarded by upsell attempts during the checkout process. While it’s understandable that a company needs to offer add-on services, it can be a bit off-putting to be offered services like registered agent fees and EIN acquisition when you’re just trying to complete the basic LLC formation.
Additional Costs for Essential Services
While ZenBusiness offers free LLC formation, key services like a registered agent or acquiring an EIN come at an additional cost. While these services are important, some users feel the need for transparency in pricing up front, rather than learning about these additional fees after the fact.
Mixed Customer Experiences
Like many online services, ZenBusiness has garnered mixed reviews. While many customers praise its user-friendly service, others have reported issues with billing and customer support, especially when issues arise outside of the standard LLC formation process.
Packages Offered by ZenBusiness
ZenBusiness offers three main service plans to cater to different business needs and budgets. Let’s break down these packages in detail.
Starter Plan
Price: $0 + state fees
Features:
- LLC formation: ZenBusiness will file your LLC with the state.
- Name availability search: The service checks whether your desired business name is available.
- Standard filing speed: Your formation documents will be filed at the regular processing speed.
- 100% accuracy guarantee: ZenBusiness guarantees that your formation documents will be accurately prepared.
- Phone and email support: Access to customer service for any questions or concerns you have during the process.
Best for: Entrepreneurs who just want to set up an LLC with no frills and are looking to keep costs as low as possible. The Starter Plan offers the basics you need to legally form your LLC without paying a premium.
Pro Plan
Price: $199/year + state fees
Features:
- All Starter Plan features: You get everything in the Starter Plan, including LLC formation and name search.
- Operating agreement: ZenBusiness will provide you with a customizable operating agreement to outline the rules for your LLC.
- Employer Identification Number (EIN): This plan includes the filing and acquisition of an EIN, which is necessary for tax purposes.
- Expedited filing: You’ll receive faster processing of your LLC formation documents, which can be a huge benefit if you need to get your business up and running quickly.
Best for: Entrepreneurs who need a bit more than just the basics, such as an operating agreement and an EIN. The Pro Plan is ideal for those who are serious about getting their business started without delay and want additional legal documents for a more professional setup.
Premium Plan
Price: $299/year + state fees
Features:
- All Pro Plan features: The Premium Plan includes all the features of the Pro Plan, including an operating agreement, EIN, and expedited filing.
- Business website: ZenBusiness will create a professional-looking website for your business, helping you establish an online presence.
- Domain name: This plan includes a domain name registration to ensure your business has its own web address.
- Domain privacy: Protect your personal information by ensuring that your domain registration is private.
- Business email address: With the Premium Plan, you’ll receive a professional email address tied to your domain, further enhancing your business’s professionalism.
Best for: Entrepreneurs who need a full-service package, including website, email, and domain registration. This plan is ideal for those who want to hit the ground running with an online presence and professional tools right out of the gate.
Add-ons Offered by ZenBusiness
In addition to the core services provided in their packages, ZenBusiness offers a range of useful add-ons that you can purchase to further enhance your business formation process:
- Registered Agent Service: ZenBusiness offers a registered agent service for $199/year. This service is required by most states and ensures that legal documents are properly received and forwarded to you.
- Operating Agreement: If you’re not opting for the Pro or Premium plans, you can purchase an operating agreement for $99. This is a crucial document that outlines the management structure and operational procedures of your LLC.
- EIN Acquisition: If you need an Employer Identification Number (EIN), ZenBusiness can assist with the process for an additional $99.
- Business Website Builder: For those who need a website, ZenBusiness offers a website builder with pricing that varies based on the features you need. This tool can help you create a professional-looking website for your business.
- Business License Report: This service costs $99 and helps you identify any business licenses or permits you need to operate legally in your state.
ZenBusiness Service Plans: At a Glance
| Plan | Price (Annually) | Features |
|---|---|---|
| Starter | $0 + state fees | LLC formation, name search, standard filing, accuracy guarantee |
| Pro | $199 + state fees | All Starter features + operating agreement, EIN, expedited filing |
| Premium | $299 + state fees | All Pro features + website, domain, email, domain privacy |
Verdict: Should You Choose ZenBusiness or Not?
ZenBusiness is an attractive option for many entrepreneurs, but it’s not perfect. Whether it’s the right choice for you depends on your specific needs, business goals, and budget.
When Should You Choose ZenBusiness?
- If you’re on a budget: ZenBusiness offers an affordable starting point with its free LLC formation plan. If you don’t need a lot of extra services, this is an excellent option.
- If you need additional services: If you need more than just the basic LLC formation, ZenBusiness offers packages with essential services like operating agreements, EINs, and registered agent services.
- If you value customer support: ZenBusiness has earned praise for its responsive customer service, making it a good choice for first-time entrepreneurs who may need assistance during the process.
When Should You Not Choose ZenBusiness?
- If you only need basic LLC formation: If you just want to form an LLC without the need for additional services, there are other services that may be a better fit for your needs.
- If you want all-inclusive pricing: While ZenBusiness is affordable, it can become costly once you factor in add-ons like the registered agent and EIN services. If you want everything included in one price, you may want to consider other options.
- If you dislike upselling: If you’re not a fan of upsell attempts, ZenBusiness might not be the best option, as they tend to offer additional services during checkout.
ZenBusiness Alternatives
If ZenBusiness doesn’t seem like the right fit for you, there are several alternatives worth considering:
- LegalZoom: LegalZoom is another popular service for LLC formation, but it tends to be more expensive than ZenBusiness. It’s ideal if you need extensive legal services beyond just LLC formation.
- IncFile: IncFile offers free LLC formation, with the option to pay for additional services. It’s another solid choice if you’re looking for an affordable option.
- Northwest Registered Agent: Known for its excellent customer service, Northwest Registered Agent is a more premium option with a focus on personalized service. It’s a good fit for entrepreneurs who want more hands-on assistance.
Conclusion
ZenBusiness offers a solid service for entrepreneurs looking to form an LLC without breaking the bank. While there are some areas for improvement, particularly in terms of upselling and additional fees for essential services, the overall value, customer support, and ease of use make it a great choice for many. Before making a final decision, assess your needs and budget to determine if ZenBusiness is the right partner for your business formation.
FAQs
Is ZenBusiness truly free?
Yes, ZenBusiness offers a free LLC formation plan. However, you will still need to pay state fees, and you may need to purchase additional services depending on your needs.
How long does it take to form an LLC with ZenBusiness?
The time it takes to form your LLC depends on your state. ZenBusiness offers expedited filing for faster processing.
Does ZenBusiness offer a money-back guarantee?
Yes, ZenBusiness offers a 60-day money-back guarantee on its paid services, excluding state fees and third-party processing fees.
