ZenBusiness LLC Formation Service Review

ZenBusiness LLC Service Review

Written by:

Carolyn Young has over 25 years of experience in business in various roles, including bank management, marketing management, and business education.

Reviewed by: Sarah Ruddle

For over 15 years, Sarah Ruddle has been a noteworthy leader in the business and nonprofit world.

ZenBusiness LLC Service Review

ZenBusiness LLC Service Review

Starting a business is exciting – and a lot of work. A crucial early step is forming a business entity with your state to make it official. Most entrepreneurs create a limited liability company (LLC) because of the many benefits, including personal liability protection. 

LLCs come with complex laws that vary from state to state, so forming one takes some doing. As a result, many entrepreneurs hire a professional business formation service to save time, ensure the process is handled correctly, and free themselves up to focus on making money.

ZenBusiness is one of the top options. We’ve done a thorough review of ZenBusiness, looking at every aspect from a customer’s point of view so that you can decide if it’s the right choice for you.

ZenBusiness Services Overview

 
Name of the Service
ZenBusiness
Plans and Pricing
3 plans, $0 – $349 annually plus state fees
Registered Agent Service
Not included, $199 annually
Operating Agreement
$99 as an add on to the free plan, included in paid plans
Annual Report Service
Worry free compliance included for one year in free plan, renews at $199 annually. Included in paid plans. Service includes annual report filing.
Processing Time
Varies by state, standard or rush depending on the plan
Customer Support
Chat, email, phone; Mon – Fri 8 am – 8 pm, Sunday 9 am – 6 pm
Business Documents Online Library
Yes, for $99 one time fee, included in Premium plan
Other Services Offered
Domain name registration, business website creation and business email address, business banking, business credit cards, online payments
Number of Business Served
500,000
Money Back Guarantee
60 days

Our Verdict on ZenBusiness

The ZenBusiness Starter and Pro Plans offer excellent value, their service is prompt and reliable, and their customers seem highly satisfied. Information about plans could be a bit more accessible on the website, and some customers had trouble canceling. 

Overall, ZenBusiness stands out as a high-quality provider in an increasingly competitive market, and we confidently recommend their services to anybody interested in LLC formation.

Plans and Pricing

Customer Support

Ease of Use

Turnaround Time

Overall Score: 4.2/5

We recommend ZenBusiness because of the value they offer, as well as their excellent customer support and industry reputation.
Learn More

Pros and Cons

Pros

  • Starter and Pro Plans are excellent value
  • Strong BBB and TrustPilot ratings
  • Quality customer service
  • PBC that aims to boost entrepreneurship

Cons

  • Reviews mention cancellation issues
  • Information on the site can be difficult to find

ZenBusiness Services

ZenBusiness provides an intuitive platform that simplifies the steps of setting up a business and ensures adherence to state rules. For those venturing into business, ZenBusiness emerges as a strong partner.

Business Formation Process

To establish your LLC, you need to submit articles of organization, also known as a certificate of organization or certificate of formation, to your state government. This filing process can be completed either online or through mail. ZenBusiness offers assistance in managing the online filing procedure on your behalf. It’s worth noting that the time it takes for your LLC to be approved can vary depending on the state.

ZenBusiness ensures that your chosen business name is available before initiating the filing process. If the name is unavailable, they will get in touch with you to explore suitable alternatives.

Once your LLC is approved and officially recognized, you will have constant access to your formation documents through the ZenBusiness website.

Registered Agent Services

When establishing an LLC in any state, it is a requirement to have a registered agent. A registered agent can be an individual or a business entity authorized to receive legal, tax, and financial documents on behalf of your business. 

ZenBusiness offers a registered agent service for an annual fee of $199. By opting for this service, ZenBusiness will act as your registered agent and handle all official correspondence and documents for your business. They take the responsibility of ensuring timely communication and maintaining copies of important documents. Additionally, they monitor crucial deadlines and send reminders for essential filings such as tax forms or annual reports, providing valuable assistance in managing your administrative tasks.

Utilizing a registered agent service not only ensures compliance with legal requirements but also saves you time by overseeing important documents and filing deadlines. This allows you to focus on growing your business while ZenBusiness provides support.

Note that if you purchase registered agent services as a standalone product, the fee is $99 for the first year, then $199 annually. If you purchase them with one of the business formation plans, you don’t get the first year discount.

Operating Agreement

ZenBusiness offers an operating agreement service that can greatly simplify the process for you. An operating agreement is a vital legal document for an LLC as it defines business ownership and outlines member responsibilities. 

This agreement establishes the financial connections among business owners, known as “members,” and sets out the core dynamics between these owners and the managers who oversee day-to-day operations.

By utilizing ZenBusiness’s operating agreement service, you can conveniently complete a pre-structured form, eliminating the need to hire an attorney to create the agreement from scratch.

If you opt for the Starter Plan, there is an additional cost of $99 for the operating agreement. However, the operating agreement is included in the Pro and Premium plans.

Although only a few states legally require an operating agreement, it is strongly recommended to have one in place.

EIN

An employer identification number (EIN) is a tax identification number assigned to your business. It is necessary if your LLC has multiple members or employees. To obtain an EIN, you need to submit an application to the IRS.

ZenBusiness offers assistance in the application process and takes care of the necessary steps on your behalf. Once your EIN application is approved, they will promptly send you the assigned EIN. The service fee for this assistance is $99 with the Starter plan. It’s included in the Pro and Premium plans.

Annual Reporting

In the majority of states, LLCs are obligated to submit periodic reports, typically on an annual basis. ZenBusiness offers a service to manage these filings on your behalf, with a cost of $100 per year.

Worry-Free Compliance

ZenBusiness offers a comprehensive business compliance service that focuses on keeping your venture in compliance. This service includes:

  1. Preparation and submission of annual reports.
  2. Two amendment filings per year, allowing easy updates to your business documents in the event of changes like business name, address, or ownership.
  3. Support from the ZenBusiness team if your business loses its good standing with the state.

For an annual fee of $199, ZenBusiness provides proactive notifications to alert you about upcoming compliance requirements and filing deadlines, ensuring that your business remains protected. The service is included in the Pro and Premium plans, and for one year in the Starter plan.

Online Document Library

ZenBusiness offers several free guides:

  • A startup cost guide
  • A guide to market research
  • A business plan template
  • A business licensing guide
  • A guide to government grants
  • Accounting and banking guides

You can also purchase access to a business documents library for $99 (included in the Premium plan), which includes:

Contractor and Service Documents:

  • Individual liability waiver
  • Company liability waiver
  • Waiver – release of liability (minor)
  • Website maintenance agreement
  • Freelancer agreement
  • Service agreement
  • Marketing agreement
  • Consulting agreement
  • Graphic design agreement

Business and Intellectual Property Documents:

  • Non-compete agreement
  • Confidentiality agreement
  • Employment offer letter
  • Employment termination
  • Employment agreement
  • Employee compensation agreement
  • Loan agreement
  • Purchase order agreement
  • Termination of agreement and release
  • Breach of contract notice
  • Partnership dissolution agreement
  • Amendment to agreement
  • Letter of intent (transaction)
  • Purchase agreement
  • Business purchase agreement
  • Joint venture agreement

These document templates can save you a small fortune in attorney fees.

Other Business Services

ServiceStand-alone CostIncluded in Plans
Domain Set Up$25 annuallyIncluded in Premium
Domain Privacy$10 annuallyIncluded in Premium
Business email address$25 annuallyIncluded in Premium
Business website$129 annuallyIncluded in Premium
Business Licensing$99 one time feeNot included
New York publication$200 one time feeNot included
Amendment filing$100 one time feeIncluded in Pro and Premium as part of worry free compliance
Certificate of Good Standing$100 one time feeNot included
Business banking$5 monthlyNot included
Money pro$30 monthlyNot included
Banking resolution$30 one time feeNot included
Business name reservation$50 one time feeNot included

Plans and Pricing

StarterProPremium
PriceState fees only$199 annually$349 annually
Business name searchIncludedIncludedIncluded
Business formationIncludedIncludedIncluded
Filing time2 – 3 weeks1 – 2 days1 – 2 days
Customer supportIncludedIncludedIncluded
100% accuracy guaranteeIncludedIncludedIncluded
Operating agreementNot included, $99IncludedIncluded
Worry free complianceIncluded for one year, then $199 annuallyIncludedIncluded
EINNot included, $99IncludedIncluded
Business document libraryNot included, $99Not included, $99Included
Business website builderNot included, $15 per monthNot included, $15 per monthIncluded
Domain name registration with privacyNot included, $35 annuallyNot included, $35 annuallyIncluded
Business email addressNot included, $25 annuallyNot included, $25 annuallyIncluded

Note that state LLC formation fees are charged in addition to the package fees.

Expedited or rush filing also usually comes with state fees.

Starter Plan

The Starter Plan offers free name availability search and business formation with standard filing times. It also includes worry-free compliance for one year, which then renews at $199 annually. 

At the cost of state filing fees only, ZenBusiness’ Starter Plan is a fantastic value compared to some competitors, which charge a fee for their entry-level package. This plan should deliver a bit of zen to the new entrepreneur looking for an affordable business launch. 

Pro Plan

The Pro Plan offers everything in the Starter Plan plus expedited filing, a customizable operating agreement template, and worry-free compliance for free for as long as you like, including two free document amendments. It also included their EIN service and rush filing. 

At an annual $199, this plan is a good value if you’d like help with your operating agreement and appreciate the compliance assistance.

This plan is best for business owners who could use some help keeping up with reporting due dates.

Premium Plan

With the Premium Plan, you get everything in the Pro Plan plus rush filing and a business website, email, and domain name, as well as access to their business documents library. 

At $349 annually, the plan is not a bad value, particularly because it includes the document library. If you want a one-stop shop for your compliance and website needs, the Premium plan will be your best option.

Turnaround Time and Cancellation

Turnaround times for business formation, according to the ZenBusiness website, are as follows:

  • Standard, as in Starter Plan: Two to three weeks
  • Rush, as in Pro and Premium Plans: One to two days

Customers can cancel their ZenBusiness plan or services anytime by emailing [email protected] or calling customer support at 1-844-493-6249 Monday through Friday 8 am – 8 pm or Sunday 10 am – 7 pm CST. There are no fees or penalties to cancel.

Website Usability

When you enter the site, you’re prompted to get started, but if you scroll down you can see the plan information.

If you go ahead and get started, the chatbot will start to make recommendations.

Once you choose a plan, the site begins to offer you additional services.

Once you’ve made your service selections, you’ll have a chance to review everything before making your payment.  

Note that in tiny print at checkout under Registered Agent Service, it says “Billed after formation.” Indeed, this $199 will be charged only after your LLC formation is complete. So be prepared for that additional charge a week or two later. 

Setting up an account took just under 15 minutes, and the site was easy to use. The navigation is simple and intuitive, so our overall experience was good. 

Customer Support

We tested all the customer service options by asking real questions through chat, email, and phone.

Chat Support

On the chat app, I asked if worry-free compliance was included in all the packages for one year and received a prompt and helpful response.

Chat Support Rating:

Response time:

Very quick

image

Email Support

 I emailed to ask what’s included in the registered agent service and received a helpful response just under 48 hours later, which is a bit on the slow side. 

Email Support Rating:

Response time:

Reasonable

image

Phone Support

Finally, I called ZenBusiness’ customer service on a Wednesday, was put on hold for ten minutes, and hung up. Calling back the next day, I was put straight through to an agent, asked how long LLC formation would take, and received a prompt answer that it would take four to six days. 

Phone Support Rating:

Response time:

Very quick

Customer Reviews

The best way to learn about ZenBusiness is to see what real customers thought of their experience. We visited Google reviews, the Better Business Bureau and TrustPilot.

We found that ZenBusiness averages about 4.5 stars out of 5 and has around 10,500 total reviews. 

The reason for the high number of reviews may be that ZenBusiness customer service reps strongly encourage clients to give positive reviews. But generally speaking, the 4.5 rating suggests its customers are very satisfied with the service.

Alternatives to ZenBusiness

ZenBusinessLegalZoomSwyft FilingsIncfile
Plans and Pricing3 plans, $0 – $3493 plans, $0 – $2993 plans, $0 – $2993 plans, $0 – $299
Registered Agent ServiceNot included, $199 annuallyNot included, $249 annuallyNot included, $199 annuallyIncluded for one year, $119 annually
Processing TimeStandard, or rushStandard state timesNext day processing, standard state timesStandard state times, expedited with top tier plan
Money-Back Guarantee60 days60 days60 days60 days
Our Rating4.24.24.24.2

LegalZoom

ZenBusiness and LegalZoom have very similar offerings, but LegalZoom’s plans offer a few more services.

Swyft Filings

Again, ZenBusinss and Swyft Filings are very similar, but ZenBusiness provides a better overall experience.

Incfile

In terms of price, ZenBusiness and Incfile are similar, but Incfile’s plans offer registered agent services for one year.

About the Company

ZenBusiness, based in Austin, Texas, was formed in 2017 and is managed by:

  • Mitch Wilde, Chief Customer Officer
  • Ross Buhrdorf, Founder/CEO

As a PBC, ZenBusiness aims to benefit the public with grants to entrepreneurs from underserved groups and support for organizations that help underserved communities.

Their mission statement is as follows:

Diversity provides different points of view for us to consider and helps bring out our best ideas. A diverse team performs better than one composed entirely of similar people. We focus on doing things differently to create a culture that values inclusion and equity, so everyone feels appreciated, valued, and respected across every level of our company.

How We Approached Our Review

We take our reviews seriously, examining these services from the customer’s perspective to evaluate: 

  • Website ease of use
  • The quality of customer service
  • The value of the services for the price
  • What real customers think

Combining these elements, we craft a comprehensive review and critique to help you make an informed decision. 

ZenBusiness FAQs

Why should I use ZenBusiness to form my LLC?

ZenBusiness can take the hassle out of business formation and offers several additional services to help you start and run your business.

What’s good about ZenBusiness?

ZenBusiness has very competitively priced plans and strong customer service. Their thousands of positive customer reviews inspire confidence in their services and abilities.

Is ZenBusiness expensive?

The ZenBusiness Starter Plan has a cost of state fees only, making it a fantastic value. Their Pro Plan is also competitively priced. We would not, however, recommend their Premium Plan to most entrepreneurs, as it does not offer much more than the Pro Plan at $100 more per year.

What will I get with the ZenBusiness Starter Plan?

The ZenBusiness Starter Plan, at the cost of state fees only, includes a business name availability search and business formation, plus a year of worry-free compliance, a tax consultation, and more.

What will I get with the ZenBusiness Pro Plan?

The ZenBusiness Pro Plan includes expedited business formation plus a customizable operating agreement template.

What will I get with the ZenBusiness Premium Plan?

The ZenBusiness Premium Plan includes rush business formation, a customizable operating agreement, a business website, a domain name, and an email address.

How much are ZenBusiness’ registered agent services?

ZenBusiness offers registered agent services at $199 per year. Their services can save you considerable time and ensure no key documents or notices are missed.

What do real customers think of ZenBusiness?

ZenBusiness has primarily positive reviews at both the Better Business Bureau and TrustPilot. Customer reviews highlight an excellent customer service experience and the service’s ease of use.

How can I cancel my account with ZenBusiness?

Customers can cancel their ZenBusiness plan or services any time by emailing [email protected] or calling customer support at 1-844-493-6249 Monday through Friday, 8 AM – 8 PM or Sunday, 10 AM – 7 PM CST. There are no fees or penalties to cancel.