User experience & onboarding
Onboarding for LegalZoom aims to demystify legal services with respect to business formation. Optionality is built-in to the flow with micro-chat questionnaire to help business owners determine the right type of business formation along with options to pick from a set menu with transparent pricing. Add-ons populate throughout the onboarding, but given the transparent pricing up front, it isn't a surprise to any prospective business owner.
Clerky mimics the flow of their target customer very seamlessly, prompting an account creation. While slightly inconvenient, it's worth noting that the account creation doesn't incur any fees until particular legal products are purchased. Clerky also makes a fairly binary choice for prospective customers - a one time all-inclusive package or an a-la-carte option with transparent pricing for each product.
LegalZoom, true to their price point, makes a seamless onboarding experience that helps a business owner swiftly and easily decide on the right legal products for themselves. Clerky, on the other hand, prompts account creation before subjecting an entrepreneur to an onboarding flow, a minor inconvenience but one all the same. LegalZoom earns the nod here for a more user-friendly design that helps discern the relative costs and value from various legal products available to a business owner, at a fraction of an attorney's cost.
Both companies are in the LegalTech space, in addition to the Business Formation industry, so you would expect lengthy processing times. With LegalZoom, you'd be right with twenty business day formation speeds being the norm. Clerky disrupts those expectations significantly, aligning its operating practices more with the Silicon Valley startups it serves than the Legal origins of its service, providing business formation processing speeds of two to three business days.
LegalZoom's twenty business day processing time is in the highest range for formation services. When compared to lawyers in general, this speed might seem swift, and indeed their services are indicative of the 'legaltech' market that reduces the cost of traditionally expensive legal advice. However, their formation speed is not up to scratch when compared to Business Formation-specific services that promise processing in a handful of days.
Not quite as swift as one day, Clerky's two to three day processing time is still up there with the fastest in the space. With a narrow band of well-targeted products, it makes sense that their processing times are fairly prompt, by industry standards.
Are they worth the cost?
LegalZoom is geared towards both the SMB and Solopreneur markets, with a strong emphasis on the individual business owner themselves. Their positioning is indicative of trying to be a one-stop-shop for businesses that have legal needs but are fearful of the costly retainers incurred by an in-house counsel or legal contractor. LegalZoom's products look to cover the breadth of what an SMB or Solopreneur business owner would need - not only professionally such as formation, trademarks, and ongoing contracts, but also personal with products for estate planning, family law, and real estate.
Not shy about their target, Clerky bashes you over the proverbial head with their ideal customer: Silicon Valley Startups. The score of recognizable names including Zapier, Segment, Coinbase, Gusto, feature heavily in their positioning as Silicon Valley's go-to for legal paperwork. Their products cover the suite of likely legal considerations for a Startup beyond Formation including Fundraising, Hiring, Structural Changes and NDAs.
NanoGlobals editor's rating for LegalZoom reflects its comprehensive nature of legal services for an aspiring business owner. LegalZoom earns points for being more cost-efficient than regular attorney services along with ease of onboarding via chat and helpful introductory flows to their products. Unfortunately, they miss the mark on pricing and processing times when compared to the industry average, outweighing any perceived advantage of being legal experts since, like with all services in this formation niche, their recommendations don't constitute legal advice.
NanoGlobals editor's rating show Clerky as a great option within their particular niche. While clearly not for every entrepreneur, their Silicon Valley experience shines through with transparent pricing that is substantially lower than other Silicon Valley-oriented services, especially with respect to ongoing fees. Minor deductions for a slightly slower processing time, although not by much, and an onboarding flow that insists on account creation up front.