LegalZoom and Rocket Lawyer are the two biggest names in online legal services. Both offer similar solutions for forming an LLC, drafting contracts, and getting basic legal advice.
We cut through the promotional offers to see which one truly provides the better value—especially when you consider the hidden annual fees that can drastically inflate your costs over time.
⚠️ Essential Legal Disclaimer
The content on BizShieldTech is for informational purposes only. We are not lawyers and cannot provide legal advice. Always consult with a licensed attorney before making any business formation or contractual decisions.
Affiliate Disclosure: This review contains affiliate links for LegalZoom and Rocket Lawyer. We may earn a commission from your purchase, which supports our independent comparisons, at no additional cost to you.
Quick Comparison: Subscription vs. À La Carte
The single biggest difference between LegalZoom and Rocket Lawyer is their pricing model, which determines your long-term cost.
| Feature | LegalZoom | Rocket Lawyer | Winner for Startups |
| Business Model | À La Carte / Package-based | Subscription-based (Best value as a Member) | Rocket Lawyer (If you need documents/advice) |
| LLC Formation (Basic) | $0 + State Fee | $99.99 + State Fee (Free for Members) | LegalZoom (For simplest, one-time filing) |
| Registered Agent (RA) Fee | $249 – $299/year | $149.99/year $124.99 for Members | Rocket Lawyer (Significantly cheaper long-term cost) |
| Legal Advice | Paid consultations or separate plan $40 - $50/month | Unlimited Ask-a-Lawyer (Member benefit) | Rocket Lawyer |
| Legal Document Library | Available for a monthly fee or $59 per document | Unlimited Access (Member benefit) | Rocket Lawyer |
1. The Registered Agent Trap: Analyzing the Hidden Annual Cost
The initial cost to form your LLC is cheap from both providers, but the real expense is the mandatory annual Registered Agent (RA) renewal fee. This is where the price difference between the two becomes staggering.
LegalZoom’s RA Cost
LegalZoom is known for high pricing across the board. While they may offer a $0 initial LLC filing, their annual Registered Agent renewal fee is one of the highest in the industry, often costing $249 to $299 per year.
- The Trap: A founder pays $0 upfront (plus state fee), thinking they got a deal, only to get hit with a $299 RA bill twelve months later.
- Best For: Founders who only need the one-time filing and plan to handle the Registered Agent duties themselves or switch to a cheaper RA service after Year 1.
Rocket Lawyer’s RA Cost
Rocket Lawyer's pricing structure is much more favorable for the long run, especially if you subscribe to their legal plan $39.99/month.
Member RA Fee: The annual RA renewal drops significantly to roughly $124.99 per year for subscribers.
The Advantage: This fee is half the price of LegalZoom’s fee. If you need a professional Registered Agent (which most small businesses do), Rocket Lawyer offers protection for far less money over three to five years.
Best For: Founders prioritizing long-term savings and privacy for their compliance needs.
2. Pricing Model: Subscription vs. Transactional
Rocket Lawyer: The Membership Model (Best Value for Ongoing Needs)
Rocket Lawyer is structured around an all-inclusive membership plan. While the non-member price for an LLC filing is $99.99, the membership price is highly attractive for an active business
Cost: Approximately $39.99 per month $479.88 annually).
Value: This fee includes your first LLC formation for free (plus state fees), unlimited legal documents (contracts, NDAs, etc.), unlimited legal questions answered by attorneys, and a 25% discount on the RA fee.
Verdict: If your business requires frequent contracts, legal templates, or occasional attorney advice, Rocket Lawyer’s subscription provides far better value than buying those services à la carte
LegalZoom: The À La Carte Model (Best for One-Time Users)
LegalZoom’s primary strength is the ability to pay a one-time fee for a specific service
Cost: Packages range from $0 Basic to $299 Premium plus state fees.
Value: If you only need your LLC filed and nothing else, their $0 option is an unbeatable entry price. However, adding basic features like an Operating Agreement or EIN registration can quickly drive the cost above $200.
Verdict: LegalZoom is ideal only if you are confident you will never need their legal library, attorney advice, or compliance services—or if you plan to hire an independent attorney for those tasks.
3. Legal Support and Document Access
This is the tie-breaker for any business that signs contracts or has employees.
| Feature | LegalZoom | Rocket Lawyer |
| Attorney Access | Paid consultations, or included in separate, expensive plans. | Unlimited "Ask a Lawyer" questions included with membership. |
| Document Library | $99 per month for unlimited access, or $59 per document. | Unlimited access to all documents (Operating Agreements, contracts, etc.) included with membership. |
| Verdict | LegalZoom provides access to vetted attorneys, but Rocket Lawyer provides affordable, immediate access to legal advice and documents, which is crucial for a startup. |
Conclusion: Who Wins?
Both companies offer reliable filing, but they appeal to different founders based on their needs:
Choose LegalZoom if: You only want the cheapest initial filing cost $0 + State Fee and plan to manage your own compliance and contracts afterward.
Choose Rocket Lawyer if: You require ongoing legal support, unlimited document creation, and the cheaper long-term Registered Agent fee. The membership model offers a significantly stronger protective shield for the active small business.
For the modern small business that needs flexibility and continuous compliance resources, the long-term value provided by the Rocket Lawyer membership—especially the savings on the mandatory Registered Agent renewal—makes it the superior long-term choice.
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