ZenBusiness LLC Review: Is It the Right Service for Your Business Needs?
Registering your business is a critical step for any aspiring entrepreneur. Although you can typically file the paperwork yourself, often for free, many business owners seek the services of a business formation service to avoid mistakes and gain access to additional support and tools. ZenBusiness is among the most popular options for those looking to register an LLC, S-Corp, or C-Corp. This review explores how ZenBusiness works, examines its pricing and features, weighs the pros and cons, and compares it to a few of its competitors, helping you decide if it’s the right fit for your business needs.
How Does ZenBusiness Work?
ZenBusiness is a business formation service designed to help you complete the paperwork for registering your business as an LLC, S-Corp, C-Corp, or DBA (Doing Business As). Choosing one of these business structures can offer significant tax advantages and provide legal protections that you wouldn’t have otherwise. In addition to formation assistance, ZenBusiness provides other services to help you with compliance and legal tasks. These services include:
- Beneficial Ownership Information (BOI) report filing
- Registered agent service
- Operating agreement filing
- Employer Identification Number (EIN) application
- Annual report filing
- Amendment filing
- Certificate of good standing
- Business license report filing
The platform also offers services to enhance your marketing efforts, such as:
- Logo kits
- Website-building tools
- Domain registration
- Business email
To get started, navigate to the ZenBusiness website and select the business entity type you want to form. Then, you’ll answer a few questions concerning the nature of your business and your planned launch date. As part of the process, you can also decide whether to appoint ZenBusiness as your registered agent (for an added yearly fee of $199). Finally, you’ll select a pricing plan. While the process is relatively straightforward, it’s essential to know your business name and structure before you start.
ZenBusiness Pricing and Features
ZenBusiness offers three pricing plans: Starter, Pro, and Premium. Here’s a breakdown of the features and cost of each plan:
ZenBusiness Pricing Plans
- Starter:
- Cost: $0 + state fees
- Features:
- Formation filing with the state in 7–10 business days
- Compliance for annual report filings and up to two amendments
- Pro:
- Cost: $199/year + state fees
- Features: Everything included in the Starter plan, plus:
- Processes within one business day
- Operating agreement
- EIN
- Rush filing availability
- Premium:
- Cost: $299/year + state fees
- Features: Everything in the Pro plan, plus:
- Processes within one business day
- Access to over 25 business document templates
- Domain name
- AI website builder
- Business email address
- Premium support available
If you’re looking to keep initial costs as low as possible, the Starter plan may be a good option. However, note that this plan doesn’t include a template for your business operating agreement. Five states—New York, California, Missouri, Maine, and Delaware—require this document if you form an LLC in the state.
ZenBusiness Pros and Cons
Before deciding on ZenBusiness, consider the following pros and cons:
Pros:
- Offers a basic plan for $0 (you just pay the state fee)
- Offers expedited filing with a turnaround time of one business day (available through Pro and Premium plans only)
- Offers compliance support across all tiers
Cons:
- Registered agent service costs more than some competitors and does not offer the first year free
- The Basic plan doesn’t include a Business EIN (you’ll pay $99 for this add-on)
- Business document templates are only available with the Premium plan
- BOI report filing is more expensive than some other competitors
ZenBusiness Alternatives: How Does It Compare?
ZenBusiness is a popular choice for business formation, but it’s helpful to compare it with its competitors to make an informed decision. Here’s how it stacks up against a couple of alternatives:
ZenBusiness vs. Northwest Registered Agent
Northwest Registered Agent
- Cost: $39 + state filing fee for LLC formation, corporation, and nonprofit
- App available? No
- Standout features: Northwest Registered Agent offers mainly business formation services and services for registered agents, trademarking, mail forwarding, EINs, business websites, and business emails
- Pros:
- Simple pricing plan
- Allows for multiple registered agents with a discount of $100/year per additional registered agent state
- Offers website building and business email service
- Offers one free year of Registered Agent service
- Cons:
- Doesn’t offer an app
- Registered Agent service is an additional $125/year after the first year
Unlike ZenBusiness, which packages its services into three pricing plans, Northwest Registered Agent takes an à la carte approach. You can choose from options such as business registration filing, domain registration, website and business email offerings, EIN application service, compliance, and registered agent services. Business registration includes your operating agreement and articles of organization for $39 plus your state’s fee. This is worth noting, as ZenBusiness’s basic plan doesn’t include an operating agreement.
Northwest Registered Agent provides a free year of its registered agent service and then charges $125 each year. In comparison, ZenBusiness charges $149 for the same service and does not offer the first year free. Northwest also has a more affordable price for EIN registration, costing $50 if you already have a social security number, compared to ZenBusiness’s $99 fee.
One advantage that ZenBusiness has over Northwest is that it provides templates for documents like employment offer letters, non-compete agreements, and more. This service is found in the Premium plan and can be beneficial as your business expands and you need professional templates.
Northwest Registered Agent is a good option if you’re looking for a few specific services. However, ZenBusiness can be a stronger option if you want access to a more comprehensive range of features.
ZenBusiness vs. Bizee
Bizee
- Cost: $0 + state filing fee for Basic; $199 + state filing fee for Standard; $299 + state filing fee for Premium
- App available? No
- Standout features: Bizee offers several valuable features, including a free year for a Registered Agent service. The platform also offers compliance alerts, business banking, business tax consulting, and more.
- Pros: Offers one free year of Registered Agent service; offers lifetime compliance alerts included in all packages; Premium package includes expedited filing
- Cons: Doesn’t offer an app.
Like ZenBusiness, Bizee offers three pricing tiers: Basic, Standard, and Premium. Bizee’s most basic plan includes articles of organization, registered agent service (free for one year), a business banking account, and a business tax consultation. That’s a lot of value compared to the ZenBusiness Starter plan, and both share a base price of $0 (plus the state fee). However, Bizee’s Starter plan lacks the compliance services found in ZenBusiness. If that’s important to you, ZenBusiness is the better choice.
ZenBusiness also includes website-building tools and domain registration in its Premium plan. Bizee doesn’t offer these services. As is often the case when choosing between competing products, you must assess your company’s specific needs before deciding. If you require help with compliance management or creating your web presence, ZenBusiness provides those services. Conversely, Bizee is a valuable consideration if neither is a priority.
Frequently Asked Questions
Why is an LLC a good idea?
An LLC is a legal structure that separates the business owner’s personal assets and debts from the business’s assets and debts. This structure protects an individual’s personal assets if the business is sued or faces bankruptcy.
How much does it cost to get an LLC?
The cost of an LLC depends on your state’s filing fee, which can range from around $50 to a few hundred dollars. You can handle the paperwork yourself or use a business formation service. If you use a service, there may be an additional service fee on top of the state filing fee. However, some services only charge the state fee.
Final Thoughts
Choosing a business formation service is an important decision that can significantly impact your business’s launch and ongoing compliance. ZenBusiness offers a robust suite of services, from basic filing to comprehensive compliance support, making it a compelling option for entrepreneurs. While the pricing is competitive, the features and added support could make the investment worthwhile for many business owners.
