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ZenBusiness LLC And Business Formation Review

ZenBusiness LLC And Business Formation Review

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Registering your business is a small but vital step on your journey to becoming an entrepreneur. You can typically do this yourself for free, but if you’re worried about making a mistake or just want some additional support and tools, it can be worth the money to sign up for a business formation service. 

ZenBusiness is one of the most popular services for registering an LLC, S-Corp or C-Corp. Read on to learn more and see if it’s the right fit for you.

ZenBusiness

  • Cost

    $0 + state filing fees for Starter plan; $199/year + state filing fees for Pro plan; $299/year + state fees for Premium plan

  • App available?

  • Standout features

    ZenBusiness offers a wide selection of services that range from formation offerings to compliance, managing your finances and building a website and logo.

Pros

  • Order processing within one business day available for Pro and Premium packages; otherwise order processing takes 7–10 business days
  • Offers business document templates (included within the Premium plan only); other plans pay an additional fee for access

Cons

  • Registered agent service costs an additional $199/year
  • Charges a base price plus state filing fee for some pricing plans; some competitors only charge a state filing fee

How does ZenBusiness work?

ZenBusiness is a business formation service that will help you file the paperwork for registering a business entity as either an LLC, S-Corp, C-Corp and DBA (Doing Business As). When you choose one of these business structures, you potentially gain tax advantages and legal protections you wouldn’t otherwise get.

ZenBusiness also offers other services to help you complete various legal and compliance tasks, like 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 and business license report filing.

The platform also sells services to enhance your marketing, such as logo kits, website-building tools, domain registration, business email and more.

To get started, go to the ZenBusiness website and select which entity you’d like to form. You’ll then answer a few questions, like what kind of business you’re forming and when you plan to launch. You can also decide whether you want to appoint ZenBusiness as your registered agent (for an added fee of $199 per year).

Lastly, you’ll just choose a pricing plan. Getting started takes just a few minutes, but you should know what type of business you’d like to start and what you’re naming your business before you begin.

ZenBusiness pricing and features

ZenBusiness offers three pricing plans: Starter, Pro and Premium. Here’s a breakdown of what each of those plans offers.

ZenBusiness Pricing Plans

Plan Cost Features
Starter $0 + state fees – Formation filing with the state in 7–10 business days
– Compliance for annual report filings and up to two amendments
Pro $199/year + state fees Everything in Starter plus:
– Processes in 1 business day
– Operating agreement
– EIN
– Rush filing available
Premium $299/year + state fees Everything in Pro plus:
– Processes in 1 business day
– Access to over 25 business document templates
– Domain name
– AI website builder
– Business email address
– Premium support available

If you want to get started as cheaply as possible, the Starter plan may be your best bet, but keep in mind that it doesn’t include a template for your business operating agreement. This is a document that five states — New York, California, Missouri, Maine and Delaware require if you form an LLC in the state.

ZenBusiness pros and cons

Before signing up for ZenBusiness, consider these pros and cons.

Pros

  • Offers a basic plan for $0 (you’ll just pay the state fee)
  • Offers expedited filing with a turnaround time of 1 business day (available through Pro and Premium plans only)
  • Compliance support offered across all tiers

Cons

  • Registered agent service costs more than some competitors  and (unlike other platforms) doesn’t offer the first year free
  • Basic plan doesn’t include 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

ZenBusiness is certainly one of the more popular names in business formation with quite a bit to offer in one convenient place, but here’s how it stacks up to a few of its competitors.

ZenBusiness vs. Northwest Registered Agent

Northwest Registered Agent

  • Cost

    $39 + state filing fee for LLC formation, corporation and nonprofit

  • App available?

  • 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 services
  • 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

While ZenBusiness packages its services into three pricing plans, Northwest Registered Agent takes an à la carte approach to selling its offerings. You can pick from 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 filing fee. Remember that ZenBusiness’s basic plan doesn’t include the operating agreement.

Northwest Registered Agent gives you a free year of its registered agent service, and then charges $125 a year. This is more affordable than ZenBusiness, which charges $149 a year for the same service and doesn’t offer the first year for free.

Northwest also offers a more affordable price point when it comes to EIN registration. It costs only $50 if you already have a social security number, versus the $99 that ZenBusiness charges.

One thing ZenBusiness offers that Northwest doesn’t is access to templates for documents such as non-compete agreements, employment offer letters and more. Available through the Premium plan, this service can come in handy as your business grows and you want professional templates for new needs.

While Northwest Registered Agent makes sense if you want access to just a few services, ZenBusiness can be the stronger option if you want to access a wider array of features for your money.

ZenBusiness vs. Bizee

Bizee

  • Cost

    $0 + state filing fee for Basic plan; $199 + state filing fee for Standard plan; $299 + state filing fee for Premium plan

  • App available?

  • Standout features

    Bizee offers several valuable features, including one year free 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

Like ZenBusiness, Bizee offers three pricing plans: Basic, Standard and Premium. Bizee’s most basic plan comes pretty stacked with offers like 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 with the ZenBusiness Starter plan, and both plans share the price point of $0 (plus the state fee). However, Bizee’s Starter plan lacks the compliance services that ZenBusiness offers, so if that’s a stickler for you then ZenBusiness may be a better choice.

ZenBusiness also offers website-building tools as well as domain registration in its Premium plan, two services that Bizee doesn’t provide. As is often the case when choosing between two competing products, you have to decide what your company really needs before making a decision. If you want help with managing compliance or creating your web presence, ZenBusiness has those services. But if neither is a priority, Bizee is definitely worth a look.

FAQs

Why is an LLC a good idea?

An LLC is a legal structure that lets business owners separate their personal assets and debts from the assets and debts of their business. So if your business were to be sued or went bankrupt, this wouldn’t impact your personal assets. An LLC offers this layer of protection for personal assets.

How much does it cost to get an LLC?

The cost can depend on your state’s filing fee, which can range anywhere from $50 to a few hundred dollars. You can file the paperwork yourself or use a business formation service, which might charge you a service fee on top of your state’s filing fee. Some services will only collect the state fee, though.

Why trust CNBC Select?

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.





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