LegalZoom
Legal Solutions Trusted By Millions
Business Initiative
Business Intelligence That Forms Your Business
Side-by-side comparison. Data as of 2026-02-16.
Company Background
LegalZoom
HQ: Glendale, California (101 N Brand Blvd)
Ownership: Public (NASDAQ: LZ)
Employees: 964+
Formations: 4,000,000+ businesses
Key Milestones
- Founded 2001 in California
- Pioneered online LLC formation
- Went public (NASDAQ: LZ) in 2021
- Acquired law firm operations
- Expanded to 4M+ formations with attorney-backed services
Business Initiative
HQ: New York, NY (virtual/nationwide operations)
Ownership: Private (founder-owned)
Employees: 1
Formations: Not publicly disclosed (quality-focused, low volume)
Key Milestones
- Launched 2021 as educational platform
- Evolved to full-service formation + RA services
- Built AI tools, stats library, and provider directory
Core Services
LegalZoom Services
Formation types:
- ✓ LLC
- ✓ Corporation (C-Corp, S-Corp)
- ✓ Nonprofit
- ✓ Foreign Qualification (all states)
- ✓ Change of Registered Agent
Differentiators:
- Privacy-focused RA (uses company address)
- Attorney-backed legal forms & reviews
- All-in-one legal ecosystem
- Corporate Veil protection guarantee
- 24/7 chat during formation
Business Initiative Services
Formation types:
- ✓ LLC
- ✓ Corporation (C-Corp, S-Corp)
- ✓ Partnerships
- ✓ Foreign LLC/Corp qualifications
- ✓ Change of Registered Agent
Differentiators:
- All state/federal fees included upfront
- Business intelligence platform (stats, AI selector, education)
- Directory of other providers
- Founder-led, transparent education
Both offer nationwide RA coverage. Compare differentiators above to see where each shines.
Pricing & Value
| Category | LegalZoom | Business Initiative | Winner |
|---|---|---|---|
| First Year Total | ~$249-$548+ (Pro + RA; state fees extra) | ~$310+ (LLC formation + RA) | Business Initiative |
| RA Annual Fee | $249/year (not included; mandatory for privacy) | $125/year per state (multi-company discounts) | — |
| Value Score | 7.5/10 | 8.5/10 | Business Initiative |
Speed & Performance
LegalZoom
Avg formation: 1-5 business days standard
Expedited: Same-day ($20+)
Business Initiative
Avg formation: 7-14 business days standard
Expedited: 1-3 business days ($25-$200); same-day before 1 PM EST
Pros & Cons
LegalZoom — Pros
- ✓ 4M+ businesses formed
- ✓ Privacy-first RA
- ✓ Comprehensive legal ecosystem
- ✓ 24/7 chat support
- ✓ Trusted since 2001
LegalZoom — Cons
- ✗ RA $249/year
- ✗ No free Year 1 RA
- ✗ High overall costs
- ✗ Aggressive upsells
- ✗ Basic for simple needs
Business Initiative — Pros
- ✓ All fees included (transparent value)
- ✓ Privacy-first RA ($125 flat)
- ✓ Educational platform (stats/AI tools)
- ✓ Fast human support
- ✓ Nationwide + foreign quals
Business Initiative — Cons
- ✗ Newer (fewer formations track record)
- ✗ Limited review volume
- ✗ Basic add-ons
- ✗ No 24/7 chat
- ✗ Virtual-only operations
The Verdict
Choose LegalZoom if: The go-to for comprehensive legal services with privacy focus—ideal if you want forms, attorneys, and RA in one trusted place. Pricey but reliable for those valuing the brand.
Choose Business Initiative if: Beats competitors on all-in costs and smarts—perfect for informed operators who want a partner, not just a filer.
Higher rating: Business Initiative (8.7/10)