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Written by: Natalie Fell
Published on August 13, 2022
Updated on December 29, 2022
If you’re starting a business, the business entity formation process is one of the first and most significant hurdles. This step can be terribly complex and time-consuming, which is why many entrepreneurs turn to a professional formation service.
One of the top options is LegalShield. But is it the best service? And is it the right choice for you? This review takes a closer look — putting ourselves in the shoes of an entrepreneur — to help you choose the formation service that will put your business on the road to success.
Pricing
Turnaround Time
Help and Support
Customer Satisfaction
Ease of Use
Overall Score: 3.4/5
LegalShield handles the business formation process for you, making it nearly seamless while offering additional services that can make life easier for a new business owner. Whether you’re forming a limited liability company (LLC) or a corporation, LegalShield takes care of all the red tape so you can focus on building a successful business.
LegalShield is a well-known provider of personal legal services with several different membership plans available to serve a variety of different needs. The company offers one signature LLC formation service called Launch for a one-time fee of $149.
| Launch Plan Services | Included |
|---|---|
| Formation of Single-member LLC | √ |
| Consultation w/business lawyer | √ |
| Business name check | √ |
| Federal Tax ID (EIN) | √ |
| Legal document filing | √ |
| Articles of Organization | √ |
| 3mo ongoing legal support | √ |
| Business permit assistance | √ |
Note that state filing fees still apply with all these plans. Fees vary by state, which we have listed in a section below.
The $149 Launch program includes formation of a single-member LLC, a business name check, EIN, and assistance with business permits. You also get three months of ongoing legal support, making it a great value.
LegalShield’s Launch plan takes care of all of the basics when it comes to forming your LLC. It includes formation of a single-member LLC and a business name check to make sure your desired name is available before officially filing. The plan also includes a federal tax ID number, which is often sold as a separate service in many other competitor plans.
The Launch package also includes filing of your articles of organization as well as any other legal documents required by the state, such as an operating agreement. You’ll get a consultation with a business attorney as well as three months of ongoing legal support to assist with getting your venture off on the right foot. LegalShield will also assist with determining which business permits you might need to stay in compliance with state and local regulations.
Note that this plan does not feature registered agent services. LegalShield offers registered agent services for $120 in the first year and $99 annually thereafter. You’ll have the opportunity to add these services when you finalize your purchase.
Your LLC must be formed with your state by filing articles of organization, sometimes called a certificate of organization or a certificate of formation. This can be done online or by mail. Legal Shield handles the filing for you online, and the LLC approval time varies by state.
This can be a time-consuming and difficult process for an entrepreneur and getting customer support from your state government office is often a challenge. With Legal Shield, you have access to customer support during normal business hours, M-F 8am – 6pm CST.
Once your LLC is approved and official, you can access your formation documents on the Legal Shield website at any time.
When you form your LLC, depending on the state where you want to register your business, there will likely be an added state fee. Below we have listed the fees for each state so you can calculate the overall expenses for creating your LLC.
Please note that the state fees are costs that you will pay in addition to the LegalShield formation service costs, or any other formation service you choose.
Use our dropdown calculator to check how much LLC formation will cost using LegalShield. Simply select the Launch Package plan and the state where you want to form an LLC to calculate the exact cost based on your needs and preferences.
In most states, when you form an LLC you need a registered agent. A registered agent is a person or business authorized to accept and respond to legal, tax, and financial documents on behalf of your business.
For $120 in the first year and then $99 annually going forward, LegalShield can act as your registered agent and ensure that all official correspondence is handled on time and properly filed. They also keep track of deadlines and send reminders of things you need to file, such as tax forms and annual reports.
A registered agent service will help keep you in compliance with the law and save you time by keeping track of key documents and filing deadlines. The agency will also provide support if any issues arise.
LegalShield’s registered agent services will enable you to have flexible hours. If you are your own registered agent, you must be personally available from 8 AM to 5 PM at your registered agent address. If you use an agency, they are available during those hours so you can focus on growing your business.
If you use a national agency like LegalShield, you can also form an LLC or corporation in another state or multiple states where you do not have residency. Using LegalShield also offers you a level of privacy, as you would never be served with a summons at your business in front of customers or employees.
The lawyers at LegalShield can assist you with creating an operating agreement customized for your state. An operating agreement for an LLC is an important legal document that details who owns the business and provides essential information on member duties.
An LLC operating agreement establishes the financial relationship between business owners (“members”) and the basics of the working relationships between those owners and the managers who oversee daily operations.
Access to business formation attorneys who can draw up an operating agreement for you is included in the Launch Plan. Only a handful of states require an operating agreement, but having one is highly recommended.
We tested the LegalShield customer service experience from every angle. Here’s what we found.
When you first go to the LegalShield website, click on the Start a Business menu at the top of the page, then click Forming an LLC.
Next, click on the Form Your LLC Now button. You will notice the service has been added to your shopping cart. You will also receive LegalShield’s Personal Legal Plan and Home Business Supplement packages for three months at no additional charge. Review your selections, then click Checkout.
You will then be prompted to create an account to continue the purchase process. Enter your contact information then click Sign Up.
You’ll then be asked to input your personal information. LegalShield collects your date of birth and the last four digits of your social security number to verify your identity. After you enter your information, click Save and Continue.
Note that when you purchase the Launch product, you are also enrolled in LegalShield’s monthly subscription, which costs $44.90. However, at checkout you are only responsible for the one-time payment of $149 and applicable state filing fees.
The purchase process itself was quick and easy and could be completed by providing less information than some competitor services. But it’s unclear what happens after you submit payment, unless you do a good amount of research or reach out to customer service. There is a page called How to Launch By LegalShield Works that details the process, but it is separate from the payment process, leaving the customer unsure.
After your purchase, you get access to an account portal where you’ll provide more detailed information to prepare in advance of your first attorney consultation. According to LegalShield, you can schedule your appointment within four hours of signing up and completing your purchase.
According to the LegalShield website, membership applications are typically processed the same day information and payment are submitted, but it can take up to 48 hours excluding holidays and weekends. During the checkout process, you’ll be asked to select a time for your small business lawyer to contact you.
Once your membership application is processed, a lawyer will reach you in as little as four hours or at the time you’ve selected. After your consultation, the rest of the filing process takes three to five business days. Keep in mind that each state has its own turnaround times, which vary greatly.
Overall, the site is easy to use if you’re ready to go and just want to complete the process. Otherwise, information can be difficult to find. The website isn’t as user-friendly as some competitor sites and we found customer service to be inconsistent, especially when it came to helping us understand registered agent services.
Launch by LegalShield offers a 100% Satisfaction Guarantee. If you are not satisfied with their services, contact customer service at (844)-699-7076 during normal business hours. They will work to correct the situation, provide a refund or offer credit toward future LegalShield orders.
All requests must be made within 60 days of purchase for refunds to be honored. Requests will be processed within two business days after they’ve received all related documents. LegalShield is unable to refund or credit any money paid to government entities, such as filing fees or taxes, or to third parties with a role in processing your order.
We tested all three forms of Legal Shield’s customer support, and detail our findings below.
When we tested the customer service response time through the online chat option, we received a response within three minutes. We asked the first agent if registered agent services were included in the Launch plan, but the agent left the chat a few minutes later without responding.
We refreshed the chat and asked the same question to another agent who told us that LegalShield no longer offered registered agent services. However, there is a lot of information throughout the website about the services, so we decided to ask the same question over the phone as well.
Support Rating:
Response time:
Very quick
We called LegalShield and after moving through a prompt, we reached a customer service agent right away without being put on hold. We asked the agent about the registered agent services and let her know that the agent we spoke to in live chat said that they were no longer available.
She let us know that LegalShield does offer registered agent services for $129 in the first year and $99 annually thereafter. We asked if she could point us to where that was listed on the website and she let us know that it’s available as a choice when we go through the online formation process.
We also asked about the operating agreement and whether it’s included in the Launch plan or only as a separate a la carte service. The agent said that, through the legal consultation services included with Launch, an attorney would be able to assist us with drafting a custom operating agreement.
The customer service representative was very professional and polite. She tried to get us to form an LLC with her assistance over the phone, but wasn’t pushy when we told her we’d come back to it later.
Support Rating:
Response time:
Immediate
We asked the same question via email about registered agent services and received the same response as the agent on the phone call provided. We got a response within a few hours of submitting the initial inquiry.
Support Rating:
Response time:
Very quick
To understand how real LegalShield customers feel about the service, we examined countless customer reviews at the Better Business Bureau and Trust Pilot.
LegalShield has an A+ rating on BBB.
LegalShield has an A+ rating from the BBB, yet only 1.97/5 stars based on 140 customer reviews. They are not currently an accredited BBB business. They have received 314 complaints which were closed in the last 3 years, and 142 complaints have been closed in the last 12 months.
Positive reviews were mostly focused around how helpful the attorney services were. Keep in mind that LegalShield provides a host of legal services, and not just business formation. Most of the positive reviews were focused on satisfaction with services related to personal legal matters. They also highlighted how fast customer service responses were.
Negative reviews expressed frustrations with customer service and attorney responsiveness. Some also referred to the lawyers as “rude” and “condescending”. People also complained about continuing to be charged for services after they’d canceled. Once again, the negative reviews were mostly centered on matters not related to business formation.
You can read reviews on the BBB website.
LegalShield has a high trust score rating on Trustpilot.
The Trustpilot score for LegalShield is 4.5/5 stars out of 2,304 customer reviews.
LegalShield reviews at Trustpilot break down as follows:
Positive reviews focused on ease of use, professional and informative service when dealing with attorneys, and responsiveness from customer service. One person appreciated the proactive follow-up from an attorney on a personal legal matter. A handful of the reviews were from people who claimed to have been a member for several years and always happy with their experience.
Negative reviews called LegalShield services a “waste of time”, with some people mentioning they could have saved money by handling matters on their own. Other reviews referred to poor customer service and attorney response times, getting poor advice from an attorney, and difficulty with cancellation.
Like the reviews from the Better Business Bureau, many of the TrustPilot reviews were focused on personal legal issues and services and not business formation services.
You can read reviews on the TrustPilot website.
Overall, LegalShield’s services offer advantages and drawbacks, as detailed below.
LegalShield is an American corporation that sells legal service products directly to consumers throughout the United States and Canada. LegalShield develops and markets pre-paid legal service plans through a network of more than 6,900 independent provider attorneys across the U.S. and Canada.
The company was founded by Harland Stonecipher in Ada, Oklahoma, where it remains headquartered today. In 1976, it was incorporated as Pre-Paid Legal Services, Inc., and made its initial public offering in 1984. In 2011, Pre-Paid Legal went from being traded on the New York Stock Exchange back to being a private company when it was acquired by MidOcean Partners, which changed the name to LegalShield.
Current Leadership Team:
We explored several services similar to LegalShield to see how they stack up.
LegalShield does a good job in terms of offering exactly what is needed to form your new LLC, but it pales in comparison to competitors with a more robust line of services and a la carte offerings. If you’re looking for a straightforward way to file without all the bells and whistles, LegalShield may suit you.
LegalZoom has three packages of services available.
None of the LegalZoom plans come with an operating agreement service, which costs $99 extra. Annual compliance services are also not included in LegalZoom plans. Turnaround times with LegalZoom tend to be longer.
Swyft Filings is not a subscription service like LegalShield. They charge a one-time fee for business formation services of $49, and other ongoing services can be added. The differentiating factor for Swyft Filings is their speed. Their signup process is quick, and they have faster turnaround times.
Incfile has very competitive pricing. Their basic plan, the Silver Package, is free and includes registered agent services for a year. Their Gold Package is only $149 and includes an operating agreement as well as a banking resolution. Their Premium Package is $299 and includes some additional services that LegalShield does not.
Overall, LegalShield provides extremely valuable services for aspiring business owners, especially when it comes to legal advice. They can ensure that your new business gets off on the right foot. Their Launch product contains all you need to form your business, which we learned from testing their support services and reading countless customer reviews.
If you’re looking for additional personal legal services along with your business formation, LegalShield might be the right product for you. At the same time, several competitors offer a more robust platform at the same price point and are better suited for new business owners.
As a leading entrepreneurial advisory site, we take our responsibilities seriously. We understand that countless entrepreneurs, and potential entrepreneurs, rely on our judgments and insights, particularly when it comes to creating their business.
As a result, our writers do their utmost to gain a comprehensive understanding of the services offered and the actual customer experience. In this case, we:
Thanks to this full immersion in the actual customer experience, our reviewer and team are able to provide the most complete and insightful review of LegalShield LLC formation services.
A service like LegalShield can make the business formation process easy for you and ensure that it’s done correctly. They provide customer support and additional services to support your business.
LegalShield offers a business formation service to handle the paperwork and cut through the red tape with your state, so you don’t have to. They also offer additional services, including registered agent services and a monthly legal services membership.
The Launch product from LegalShield includes formation of a single-member LLC, a business name check, EIN, and assistance with business permits. You also get three months of ongoing legal support, making it a great value.
Launch by LegalShield costs a one-time fee of $149 plus state fees. You will also be charged a monthly membership fee of $44.90 going forward.
The LegalShield registered agent service is a professional service that will handle official correspondence and documents for your business. They will ensure that all correspondence is handled on time and keep copies of documents for you. They will keep track of deadlines for you and send you reminders of things you may have to file, such as tax forms or annual reports.
Registered agent services from LegalShield cost $120 for the first year and $99 annually thereafter.
LegalShield has an A+ rating from the BBB with 1.97/5 stars in customer reviews. They are not currently an accredited business with the BBB.
Launch by LegalShield offers a 100% Satisfaction Guarantee. If you are not satisfied with services, contact customer service at (844)-699-7076 during normal business hours to correct the situation. If you decide to cancel, LegalShield will provide a refund or credit toward future orders, as long as your request is made within 60 days of purchase.
After you purchase the Launch service, you can schedule your initial consultation with a business lawyer to start the process in as little as four hours. After your consultation, the rest of the filing process takes three to five business days. Keep in mind that each state has its own turnaround times, which vary greatly.
Yes, overall LegalShield offers good value and legal support for business owners. However, they do not offer as many benefits as other LLC formation competitors. Their customer service and website experience is, however, not at the level of industry leaders like ZenBusiness and LegalZoom.
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