Rocket Lawyer vs. LegalZoom: Which is Best for Your LLC?

There comes a moment for every creator when the "hobby" starts looking like a business. Usually, that moment involves a check you need to deposit or a contract you need to sign. That is when the three-letter acronym starts calling your name: LLC.

Forming a Limited Liability Company is the standard way to protect your personal assets from your business risks. But unless you have a law degree, you probably don't want to handle the state filings yourself. This leads most of us to the two giants of the industry: Rocket Lawyer and LegalZoom.

In 2026, both services have evolved into massive platforms. But they approach the "business of law" in very different ways. One wants to be your lifelong legal partner; the other wants to be the shop where you buy exactly what you need, when you need it.

LegalZoom: The Industry Veteran

LegalZoom is the brand everyone knows. They have formed millions of businesses since 2001, and that experience shows in their interface. It is incredibly polished and easy to navigate.

How the Pricing Works:

LegalZoom has shifted toward a "Basic" plan that starts at $0 plus state fees. This is a great hook, but you have to be careful with the add-ons. By the time you add an Operating Agreement, an EIN (tax ID), and a Registered Agent, that "free" plan can quickly climb toward $300 or $400.

The Best Feature:

The "Satisfaction Guarantee." LegalZoom offers a 60-day window to get your money back if you aren't happy with their service. This provides a lot of peace of mind for someone doing this for the first time. They also offer a banking resolution in their basic packages, which makes opening a business bank account much easier.

Rocket Lawyer: The Subscription Model

Rocket Lawyer takes a fundamentally different path. They aren't just a filing service; they are a legal subscription.

How the Pricing Works:

For **$39.99 per month**, you get access to their entire library of legal documents, the ability to ask a lawyer questions, and—critically—they will often file your first LLC for free (you just pay the state fees). If you are a member of their "Rocket Legal Plus" plan ($239/year), you also get significant discounts on registered agent services.

The Best Feature:

The "Attorney Q&A." As you grow, you will have questions. "Can I fire this contractor?" or "Is this NDA valid in California?" Rocket Lawyer lets you ask these questions to real attorneys as part of your membership. For a business owner who is constantly signing new deals, this ongoing access is incredibly valuable.

The Comparison: Head to Head

The Hidden Trap: The "Registered Agent"

Every LLC is required by law to have a Registered Agent. This is a person or entity that receives legal documents on your behalf. While you can sometimes act as your own agent, most entrepreneurs choose to hire a service to keep their home address off public records.

Both LegalZoom and Rocket Lawyer charge significantly for this service. LegalZoom usually sits around $249/year, while Rocket Lawyer is about $125/year if you are a member. If privacy is your main goal, this is a recurring cost you must factor into your yearly budget.

The Final Verdict: Which One Should You Choose?

The choice depends entirely on how you plan to run your business over the next 12 months.

Choose LegalZoom if:

You just want to get your LLC paperwork filed correctly and you don't anticipate needing much legal help in the future. Their $0 "Basic" plan is a solid way to get started if you are willing to handle the EIN and Operating Agreement yourself to save money.

Choose Rocket Lawyer if:

You know you will be signing contracts, hiring contractors, or dealing with trademarks. The $39.99/month subscription feels like an "insurance policy" for your business. Having a lawyer on standby to answer quick questions is worth far more than the monthly fee if it keeps you out of legal trouble.