Forming a Limited Liability Company (LLC) takes your business to the next level. Savvy business owners research the best LLC formation options when it’s time to grow. We’ve compiled everything you need to know about one of the most recommended LLC formation options, ZenBusiness, to see if this top-rated company is the right choice for you.
Read our review to see the pros and cons, as well as all the options available, to professionals working with ZenBusiness to create their new LLC.
ZenBusiness Pros and Cons
- Affordable Pricing – ZenBusiness is one of the most affordable LLC formation options available. With bottomline a priority for many small businesses, the budget-friendly price of ZenBusiness’ quality services is often the deciding factor for many.
- Ongoing Support – Maintaining an active LLC requires annual reporting and filing. ZenBusiness can help with all aspects of your LLC, from formation to annual requirements.
- User-friendly Setup – ZenBusiness partners simplify the LLC formation process so that even those without any prior experience can understand what is required from start to finish. They also outline the annual requirements clearly so that business owners know how to grow their business in the future.
Cons of ZenBusiness
- Customer Service Unavailable on Saturdays< – If you are starting a business on the side, chances are you work on the weekends to take care of your new business. With ZenBusiness customer support unavailable on Saturdays, this can cut into your available time to interface with their customer services if you ever need them.
- Up-Sells After Formation – If you choose ZenBusiness, be ready for frequent targeted up-sells during the LLC formation process. To be fair, this is common with all LLC formation companies and ZenBusiness is no exception.
- More Expensive than DIY – You can take care of all steps to form an LLC on your own, often for free (plus the state fee). Getting an Employer Identification Number (EIN) is free through the IRS. ZenBusiness charges for these services. If your only goal is saving money, going the DIY route is the most economical.
We recommend ZenBusiness for its value and available services during the LLC formation process. It offers the same services as many of its competitors at a more budget-friendly price.
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ZenBusiness Pricing and Packages
ZenBusiness offers multiple packages to help you set up your business with the details and features you need while saving money. Each one of their packages can be used as a one-time service or renewed annually to get continuing customer support that keeps your business running.
As a top-rated LLC formation service, ZenBusiness has grouped its services into three packages that cater to businesses of different sizes and needs. You can also go from one plan to another as your business grows without any interruption in services.
ZenBusiness Starter Package
For businesses just starting out, the appropriately-named Starter package includes the essentials that you need to form your business. Each state has different forms and requirements, which is why it helps so much to have a service walk you through the process. This includes:
- Standard filing service
- Registered Agent service
- Operating Agreement template
- 100% Accuracy Guarantee
To file as an LLC, ZenBusiness will complete the Certificate of Formation and the Articles of Organization with your state. They use a standard template with input from you, the business owner. If you don’t need a lot of help with advertising or growth, but only need the liability protection that comes with an LLC, the Starter package is perfect for you.
The Starter package also includes the Registered Agent service. As your Registered Agent, ZenBusiness is on file with your state authority to receive correspondence related to your LLC filing. This frees you up from having to keep track of these documents, although it is still good practice to have them in your own files. All LLCs are required to have a Registered Agent on file, either the business owner or a third-party service.
You also have access to the Operating Agreement template from ZenBusiness with this package. All LLCs are required to have an Operating Agreement on file, which outlines how their business will operate and run. While not a complicated document, there are a few things that must be included. The ZenBusiness template covers everything so that your business stays in compliance.
At $39 for the first year, the Starter package is a budget-friendly option that gets your business off the ground. When it renews, the price goes up to $119 per year, which is still the cheapest option available from ZenBusiness.
Who is the ZenBusiness Starter Package Best For?New business owners who want the essential services to form a business, but don't need a lot of specialized features
ZenBusiness Pro Package
The Pro package includes everything associated with forming an LLC in your state at an expedited speed, plus the federal tax documents needed to create your LLC with the Internal Revenue Service. When creating your LLC, you will need to apply for an Employee Identification Number (EIN), which ZenBusiness does on your behalf. Many business owners don’t want to spend their time filling out and sending in forms to the IRS, which is one of the reasons why this package is the most popular.
This package also includes the Operating Agreement template and a Banking Resolution template. To open a business bank account, you must have a document that has all owners in the LLC authorizing the business to open the account. It also details who can sign on behalf of the business for the account. Having this financial document is crucial to running a business and will protect both you and your business from fraud.
All LLCs are required to file and pay a fee annually to their state. The Pro package takes care of this annual requirement to keep your business in compliance with state regulations. This makes sure that your time and money are not spent on late fees or other headaches.
This plan is more expensive at $149 annually. But when you consider how much time and money you will save by not having to take care of your state’s annual filing requirements, it may be worth the extra cost for this service.
Who is the ZenBusiness Pro Package Best For?Business professionals who want support with formation, tax documents, and banking
ZenBusiness Premium Package
If you want everything related to starting your business taken care of, the ZenBusiness Premium package is what you need. Your filing application goes to the front of the queue at ZenBusiness, creating your LLC in days rather than weeks. Keep in mind that expedited or rush service refers to the handling of your documents at ZenBusiness. State processing times may be delayed, which ZenBusiness cannot control.
Businesses also get the Registered Agent service, an Operating Agreement template, Banking Resolution template, and EIN. This covers all of the things needed to get your business going. You also get the annual compliance service so you don’t need to be hassled with any of the annual filing requirements as long as you keep this service.
For businesses that are ready to market themselves or their products, the Premium package also covers a business domain name, business website, and business email address. Most businesses decide to establish an online presence pretty early. If you expect to need a way for customers to find you or reach out, it may be worth getting these things set up by ZenBusiness as well.
This is the most expensive package option from ZenBusiness at $249 annually. Considering that website hosting fees and email addresses can run $100 or more each year when purchased from another provider, getting the Premium package with ZenBusiness may actually save you money. Just make sure that your business needs these extras before you opt for the all-inclusive package.
Who is the ZenBusiness Premium Package Best For?Businesses who want to establish their online presence early with a website and email hosting
ZenBusiness Reviews Across the Web
TrustPilot ranks ZenBusiness 4.8/5. Out of a total of 6.061 reviews, 87% of users rank Zenbusiness as “Excellent”.
The Better Business Bureau gives ZenBusiness an A rating.
We rank ZenBusiness as #1 in our review of the Top LLC Services. Other services that competed against ZenBusiness were:
- Legal Zoom – Read full Legal Zoom Review
- Northwest Registered Agent – Read full Northwest Registered Agent Review
- Incfile – Read full Incfile Review
Frequently Asked Questions (FAQs)
Why Should I Use an LLC Formation Service?
Creating an LLC is a paperwork process, which any reputable company like ZenBusiness can take care of for you. ZenBusiness is one of the best in both customer experience and value. This frees you up to focus on growing your business, something only you can do. Spend your time on your business and let a third-party service take care of the filing paperwork and compliance.
Is ZenBusiness legit?
Yes, with an A rating from the Better Business Bureau and over 6,000 “Excellent” reviews from customers on TrustPilot, ZenBusiness is one of the most respected and reputable companies in the industry. ZenBusiness customer support will answer any questions you may have about keeping your information secure before you work with them to create your business.
Is ZenBusiness Reliable?
Every ZenBusiness package includes a 100% accuracy guarantee. You can get a refund if your information is incorrect. The responsibility is still on you as the business owner to make sure that your business remains in good standing, but ZenBusiness has a long history of being a reliable provider of these services.
One of the great things about ZenBusiness as a company is their focus on educating their customers so that they are equipped with the knowledge they need to be successful business owners. Before choosing a package, you can read through many FAQs about LLCs and other formation options offered through ZenBusiness.
Can you cancel ZenBusiness?
Your contract with ZenBusiness is on an annual basis, so you have the opportunity to cancel their services each year. You will still be responsible for any costs that the company incurred on your behalf, such as filing fees with your state authority or the IRS, but you do have the option to manage these aspects of your business yourself in the future if you decide to go that route.
Should I use a Registered Agent?
All LLCs are required to list a Registered Agent when they file and when they update their documents annually. However, it is not required that the Registered Agent be a different entity or person than the business owner. This means that you can act as your own Registered Agent. For small businesses or those with just a single owner, this may be simple enough. But if you have any ongoing correspondence with your state or the IRS, it can be a good idea to delegate this role to a service like ZenBusiness.
Are There Hidden Fees with ZenBusiness?
ZenBusiness is upfront about their pricing, including the additional state fees that will be charged to form an LLC. These vary by state and are detailed once you look into a specific package and state. You can purchase additional services a la carte, even if you choose a lower-tier plan. Keep in mind that this may end up more expensive than going with a higher-tier plan in the beginning.
Information on this page has been gathered by a multitude of sources and was most recently updated on June 2021.
Any Information on this site is not guaranteed or warranted to be correct, accurate, or up to date. StateRequirement and its members and affiliates are not responsible for any losses, monetary or otherwise. StateRequirement is not affiliated with any state, government, or licensing body. For more information, please contact your state's authority on insurance.
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