LegalZoom vs Corpnet

Features, pricing, and contract terms compared

Patrick Ward Patrick Ward Follow Published: Sep 27, 2022

LegalZoom provides holistic legal products to an SMB or solopreneur business owner, focusing on the legal headaches they are likely to encounter in their professional and personal lives. CorpNet, instead, hones in on the second audience of the two aforementioned ones, the solopreneur. CorpNet prefers to help solopreneurs start their own ventures from scratch and guide them through that process, understandably given its the brainchild of two entrepreneurs with successful multi-million dollar exits.

Content on this page does not constitute financial advice. It is intended for general information purposes only.

LegalZoom

3.4/5 stars

LegalZoom is similar to CorpNet in the formation service offering, but differs when it comes to extra services and personal legal templates. LegalZoom is more full-service when it comes to general legal services, although their processing times tend to be high relative to the market.

CorpNet

3.1/5 stars

CorpNet's processing times, similar to LegalZoom, are surprisingly high especially considering how the market has shifted to an almost on-demand speed of business formation. Nevertheless CorpNet differs from LegalZoom by focusing on the entrepreneur, helping them navigate the hurdles of starting an entrepreneurial venture from scratch.

Summary of key differences

FeatureLegalZoomCorpNet
Entry price$79 + state fees$79 + state fees
Standard processing time20 business days30-40 business days
Foreign qualification fee $229 $199

Pricing Analysis: LegalZoom vs CorpNet

LegalZoom is more aligned with CorpNet on its pricing strategy than others in the industry, and indeed you can't split the difference with both LegalZoom and CorpNet costing $79 + state fees for its basic product. The difference starts to make itself more pronounced in an ongoing engagement with LegalZoom's annual registered agent renewal rate of $299, substantially higher than CorpNet's $149 fee. The two firms pricing converges again at the foreign qualification point with LegalZoom's marginally higher charge of $229 compared to CorpNet's $199.

LegalZoom pricing

The base pricing from LegalZoom is the same as CorpNet. However, note that pricing is impacted by state fees. For example, LegalZoom customers setting up an LLC in Delaware will see an initial cost of $169 (package cost plus the state LLC fee). In Wyoming, the same package would cost $279 because of the higher state fee.

CorpNet pricing

The base pricing from LegalZoom is the same as CorpNet. However, note that pricing is impacted by state fees. For example, CorpNet customers setting up an LLC in Delaware will see an initial cost of $169 (package cost plus the state LLC fee). In Wyoming, the same package would cost $279 because of the higher state fee.

LegalZoom vs CorpNet market value analysis

Market average based on analysis of 9 formation services providers.
MetricMarket AverageLegalZoomCorpNet
Lowest package price$156 before state fees$79 + state fees$79 + state fees
Formation processing time9 business days20 business days30-40 business days
Registered agent annual cost$152 $229 $199

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.

CorpNet's initial onboarding flow is extremely straight forward - additional information is placed below the fold, but within a few clicks you are picking between 3 basic packages for your business formation. In standard 'Good, Better, Best' format, the selection of product is made extremely easy via transparent pricing and feature comparison.

LegalZoom's chat flow builds transparency into a traditionally opaque business model of legaltech, suggesting but not forcing a variety of add-ons with clear pricing for the SMB target audience. In most instances, LegalZoom would win for their transparency in the business formation space, however CorpNet is seldom rivalled when it comes to its clear display of pricing and packaging that explicitly states the products an entrepreneur is receiving and not getting for their money.

Formation speed

LegalZoom is not known in the industry for its fast turnaround times for business formation processing. Ironically enough, LegalZoom's twenty business day formation speed actually beats CorpNet. CorpNet has a positively snail-paced formation speed of thirty to forty business days, although they will accelerate the process for a fee.

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.

CorpNet's thirty to forty business day processing time is extremely high for formation services. It appears that they have not kept up with the industry which has tended towards swift processing times (knowing that there are additional state processing times after the formation service completes their portion)

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.

Solopreneurs are the explicit target of CorpNet in both their messaging and imagery. Social proof from the publications of choice for Entrepreneurs (Inc and Forbes) abounds and they focus on making the process simple for individuals looking to start a business. Consultations are also offered to help walk prospective entrepreneurs through the complexity of business formation and ongoing compliance.

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.

The CorpNet rating by our NanoGlobals editorial team represents that they are a solid option, but that there are significantly better options on the market. Their ongoing pricing is fairly transparent and cost-effective compared to the market. CorpNet's onboarding flow is one of the easiest to follow but that's offset by initial packages that are on the mid-high end of the market. CorpNet loses substantial points for its exorbitantly long processing times, falling behind the contemporary industry norm of 1-3 business days.

Author Credentials

Patrick Ward is an expert on working with startups and new businesses. He has 8 years experience serving tech-enabled companies with staffing and growth.

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