ZenBusiness LLC 2022 Review: How the Service Really Works

In this Zenbusiness LLC review, we delved deep into the essentials of hiring their online incorporation service to form your LLC or corporation.

zenbusiness llc

One of the top services on the market for LLC and incorporation formation is ZenBusiness, which has so far assisted in the formation of more than 300,000 enterprises.

We’ll go over all you need to know in this ZenBusiness review so that you can choose the right program for your company.

In contrast to other organizations that help you register an LLC, ZenBusiness lets you set up a yearly membership account that costs as little as $39 per year.

About ZenBusiness

ZenBusiness’s business approach allows them to offer LLC creation at a lower price than rival companies while still providing ongoing support.

The bulk of other LLC formation companies send you the paperwork via mail and provide scant help following the initial filing.

ZenBusiness is a good choice if you appreciate the possibility of ongoing support along with a cheap filing fee for an LLC.

In this review, we go into pricing strategy, advantages and disadvantages, a summary of user feedback, and a walkthrough of the filing procedure with ZenBusiness so you know what to expect.

Based on all the reviews I’ve written so far for LLC services, ZenBusiness currently has the highest overall rating. Here is my complete evaluation.

ZenBusiness Overall Pricing and Value

Everything starts with our Starter plan, which is cost-free (you only need to pay your state’s fee) and comes with our ZenBusiness Money Essential expense and deduction tracking program.

It also includes complete preparation and filing of your articles of incorporation, a statement of the organizer/incorporator, a risk-free accounting assessment, and other necessary documents.

A guided operating agreement or business bylaws, ongoing compliance advice, and quicker processing are all included in our $199 Pro package.

Our Premium package, which is appropriately named, is our most expensive plan offered by ZenBusiness and costs $299/year.

It includes a business website bundle that comes with a business email account, domain name registration, and privacy.

Additionally, ZenBusiness will accelerate our internal processing to the highest rates possible.

ZenBusiness Track Record

ZenBusiness was established in 2015 and has its headquarters in Austin, Texas.

Because of our staff’s usage of technology, ZenBusiness has managed to stand out in this crowded field.

ZenBusiness employs automation to carry out a range of commercial services, allowing us to charge less than many of our rivals.

In the coming years, ZenBusiness hopes to develop over one million new firms, having already formed over 300,000 of them.

Customer Support and Refund Policy

Although ZenBusiness charges an annual fee for its services, consumers are allowed to cancel them at any time and receive a prorated refund.

Within a few days of receiving the customer’s cancellation notice, ZenBusiness will begin processing the reimbursement.

You won’t lose much money if you decide to cancel and request a prorated refund because this program has a modest annual fee ($39 for the starter plan).

Beyond 90 days after creating an LLC, I couldn’t discover any other company that grants refunds.

ZenBusiness customer service can be reached at 1-844-493-6249 toll-free. Representatives are accessible from 8:00 a.m. to 8:00 p.m.

Central Standard Time Monday through Friday and from 10:00 a.m. to 7:00 p.m. on Sunday (CST).

On the ZenBusiness website, customers can opt to engage in real-time chat with a representative by selecting the Chat Now button.

On weekdays from 8:00 a.m. to 8:00 p.m. CST and on Sundays from 10:00 a.m. to 7:00 p.m. CST, live chat is accessible.

The email address to reach customer support is [email protected]. The company states that customers can expect a reply within one business day.

Placing an Order on ZenBusiness

The majority of people who use these services to incorporate or launch an LLC are novices at creating companies.

You might not want to deal with the trouble, or the formation procedure may seem a little difficult.

No matter the motivation, using services like ZenBusiness ought to be straightforward.

The sole purpose of using a formation service is to delegate this important step, saving time and effort.

However, some rival service providers still need so much work that it would be better to just do it yourself. Thankfully, ZenBusiness avoids this problem.

The order form for the ZenBusiness formation service may be completed in a short amount of time, and it has straightforward instructions.

Simply select the package you want to buy, provide us with some basic information about your company, and we’ll take care of the rest.

Advantages of ZenBusiness

Fewer Corporate Formalities

Companies are required to preserve written corporate minutes, hold regular meetings of the board of directors and shareholders, and submit yearly reports to the state.

On the other side, an LLC’s managers and members are not required to hold frequent meetings, which lessens the hassle and paperwork.

No Ownership Restrictions

Companies are required to preserve written corporate minutes, hold regular meetings of the board of directors and shareholders, and submit yearly reports to the state.

On the other side, an LLC’s managers and members are not required to hold frequent meetings, which lessens the hassle and paperwork.

Cash Method of Accounting

Most limited liability companies can use the cash method of accounting, unlike a C-corporation, which frequently has to use the accrual method.

It follows that receiving money does not count as earning money.

Membership Interests in a Living Trust

Most limited liability corporations can use the cash method of accounting, unlike a C-corporation, which frequently has to use the accrual approach.

Receiving money does not count as earning money.

Ability to Deduct Losses

The membership interests of an LLC’s members may be held in a living trust at their discretion. Shares of an S-corporation are challenging to transfer into a living trust.

Tax Flexibility

For tax reasons, LLCs are automatically regarded as “pass-through” entities, similar to a sole proprietorship or partnership.

Therefore, LLCs are not subject to double taxation. Furthermore, an LLC owner is exempt from paying taxes on his or her own salary for unemployment insurance.

However, an LLC has the option to decide to be regarded for tax purposes as a corporation, either a C-corporation or an S-corporation.

Disadvantages of ZenBusiness

Social Security and Medicare Taxes

In some cases, LLC owners may wind up paying higher taxes than corporation owners.

Self-employment taxes, which now amount to a total of 15.3%, are levied on the salaries and earnings of an LLC.

With a corporation, these taxes only apply to salaries (and not profits).

This drawback is especially noticeable for business owners who earn less than $97,500 in pay for the tax year 2007.

Owners Must Immediately Recognize Profits 

A C-corporation is not required to pay out dividends to its stockholders right away.

This indicates that the profits of a C-corporation are not necessarily taxed to the shareholders.

They automatically included the profits of an LLC in a member’s income because an LLC is not subject to double taxation.

Fewer Fringe Benefits 

Employees of an LLC are required to treat any fringe benefits, such as parking, parking reimbursement schemes, group insurance, and medical insurance, as taxable income.

Employees who own over 2% of an S-corporation are in the same boat. However, C-corporation employees

Alternative ZenBusiness Services

Many companies offer services that are comparable to ZenBusiness. The following highlights two of these companies:

There are three plan options offered by both Harvard Business Services and ZenBusiness, but the pricing is very different.

For $179, $229, and $329, respectively, Harvard provides the Green, Basic, and Standard plans. Harvard has a BBB rating of A+.

Each business provides efficient business formation form processing as well as registered agent services. In the previous review, we rated Harvard Business Services 34 out of 40.

Rocket Lawyer

Only one business formation package, starting at $99.99 annually, is available from Rocket Lawyer.

Since its founding in 2008, this company has served 20 million clients; however, not all of them are businesses, given that Rocket Lawyer also provides legal services.

Although Rocket Lawyer has slightly faster creation times, both services provide live customer support every day of the week, 24 hours a day.

While ZenBusiness has been in operation for seven years less than Rocket Lawyer, it is on par with the last two categories in terms of time in business, clients served, and good ratings. Rocket Lawyer received a 33 out of 40.

Swyft Filings

Three business formation plans are available from this company that is comparable to ZenBusiness.

Without factoring in state filing fees, the annual cost of the Basic Package is $49, the Standard Package is $149, and the Premium Package is $299.

The majority of the more than 20,000 online evaluations for Swyft Filings are favorable.

Swyft Filings has one advantage over ZenBusiness in that it can assist people in forming 501(c)(3) non-profit organizations. In our evaluation, Swyft Filings received a strong 30 out of 40 points.

ZenBusiness Mode of Operations

ZenBusiness uses automated technologies along with our own small-team philosophy to assist startup companies.

You may anticipate an easy process when placing an order for a package from ZenBusiness.

A summary of what to anticipate after clicking our “Start Now” button is provided below:

1. Give Information About Yourself

Your name and contact information are among the fundamental pieces of information ZenBusiness require in order to formally register your firm and set things up. 

2. Select your Package

There are three different packages available. List the state you’re selecting and the type of business you have at the start of the page to get an accurate estimate of your costs.

3. Tell ZenBusiness About Your Business

This is typically the stage of the procedure that takes the longest.

But it’s simple; all you have to do is tell ZenBusiness everything about the LLC or company you want to form, including the preferred name, the location of the business, the owners and managers, and more.

By using this data, ZenBusiness can more easily complete your paperwork for the Secretary of State and other required governmental bodies.

4. Provide Payment Information

You’ll need to have a credit card on hand to complete your order. This will cover both our service charge and any.

In Summary

Simple legal filings are made simpler and more economical for small business owners by ZenBusiness.

Undoubtedly, you can create and submit your own business formation documents with ZenBusiness, saving money by forgoing the services of lawyers or other potentially expensive specialists.

On the other hand, unlike some of our major rivals, like Rocket Lawyer or LegalZoom, we have not yet created millions of businesses.

However, ZenBusiness is a really wise choice if you’re beginning a business on a low budget and are seeking an incorporation service with excellent overall value.

Their many advantages far outweigh their few drawbacks.

Frequently Asked Questions

Whatever your need is, ZenBusiness is one of the best choices for business owners looking to form an LLC or a corporation

Overall, ZenBusiness is a great option due to its pricing, transparency, products offered, and easy-to-use dashboard.

ZenBusiness offers an annual compliance service that audits your business formation documents to assess what you need to do to maintain good standing with your state.

ZenBusiness is the best LLC service for any business. Although there’s no free plan, there’s a price point that will work for almost any budget.

Social Security and Medicare Taxes, Owners must immediately recognize Profits and Fewer Fringe Benefits 

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