LegalZoom is the name most founders reach for when they decide to incorporate. It has been forming companies since 2001 and has filed for millions of businesses, so it is a safe, recognizable default. But "recognizable default" and "best fit for a startup" are not always the same thing. This post compares LegalZoom's formation service against looch Start honestly, including the places where LegalZoom is genuinely the better choice.
Both are formation services that file your company with the state and help you get set up. The difference is what comes bundled, what you pay over the first year, and what happens after the paperwork clears. LegalZoom is a legal-services company with formation as one product among many. looch Start is the front door to a financial platform, so formation flows straight into accounts, cards, payments, and accounting.
What you actually pay: The all-in price
The sticker price on a formation service rarely tells the whole story. The number that matters is what you pay to walk away with a fully usable company: state filing, the EIN, an operating agreement or charter docs, and a registered agent for year one.
looch Start is $249 all-in. That includes the state filing fee, the EIN, a registered agent and virtual office for the first year, and the formation documents. Entity options are a VC-ready Delaware C corp, a Delaware LLC, a Wyoming LLC, or a Florida LLC (source: looch.money/start).
LegalZoom's formation is tiered. The entry Basic tier is advertised at $0 plus state filing fees, but the EIN and several essentials are paid add-ons on that tier. The mid Pro tier is $249 and the Premium tier is $299, both plus state filing fees (source: legalzoom.com). Once you add the pieces looch bundles by default (the EIN, a year of registered agent, and an S corp election), looch's published comparison puts a usable LegalZoom setup at about $587 all-in (source: looch.money/start). The EIN by itself runs $79 (source: legalzoom.com). State filing fees are charged on top of the package on every tier.
The gap widens in year two. looch renews the registered agent and virtual office together at $49 per year (source: looch.money/start). LegalZoom's registered agent service is $249 per year and renews at that rate (source: legalzoom.com). That recurring difference is larger than the one-time price difference, and it repeats every year you keep the company open.
What is included, side by side
The headline price means little without the line items. Here is what each service actually puts in the box.
State filing
Both file your formation documents with the state. looch includes the state filing fee in the $249. LegalZoom charges state filing fees on top of every package tier (source: legalzoom.com).
EIN, including without an SSN or ITIN
looch obtains your EIN at formation at no extra cost, and it does so even if you do not have an SSN or ITIN. That path takes about four days and ends with the IRS CP-575 (source: looch.money/start). This is the part many foreign founders get stuck on, because the standard online IRS application assumes a US tax ID.
LegalZoom can obtain an EIN, but it is a paid add-on at $79, and it is bundled into the Pro and Premium packages rather than the free Basic tier (source: legalzoom.com). For founders without an SSN or ITIN, LegalZoom's EIN service is not a clear fit: its application requirements ask for each owner's Social Security number and state that the business must be located in the US or a US territory to apply online (source: legalzoom.com). Foreign founders should confirm the path directly, since the standard workflow assumes a US tax ID.
Registered agent and renewal
Every formed company needs a registered agent in its state. looch includes one in year one and renews it, bundled with a virtual office, at $49 per year (source: looch.money/start). LegalZoom sells its registered agent service separately at $249 per year, and it renews at that rate (source: legalzoom.com).
VC-ready documents
If you intend to raise, the paperwork an investor expects matters more than the entity itself. looch's VC-ready package is included and contains a stock purchase agreement, an IP assignment agreement, and a Section 83(b) election draft (source: looch.money/start). LegalZoom provides an operating agreement on its Pro tier and a deep catalog of legal documents, but a startup financing set (stock purchase, IP assignment, 83(b)) is not part of its published formation packages; those documents are not listed among the package inclusions (source: legalzoom.com).
Virtual office
looch includes a virtual office (a business address with mail handling) in formation, renewing at $49 per year alongside the registered agent (source: looch.money/start). A virtual office is not listed among the inclusions in LegalZoom's formation packages (source: legalzoom.com).
S corporation election
looch lets you make the S corp election any time, in-app, at no extra cost (source: looch.money/start). LegalZoom treats S corp election as a paid extra; looch's comparison cites about $60 for it (source: looch.money/start). LegalZoom does not publish a standalone price for this on its public pages, so confirm the current charge with LegalZoom directly.
Filing speed
looch files with the state in one business day (source: looch.money/start). LegalZoom's speed depends on the package: its Economy tier uses standard processing, the Standard tier adds 5-day priority processing, and the Express Gold tier offers 1-to-2-day express processing, with faster tiers costing more (source: legalzoom.com). LegalZoom also notes its processing time is separate from the Secretary of State's own processing, which varies by state. If timing matters, compare standard-to-standard rather than standard against an expedited tier.
Privacy
Where your company is formed determines whether your name shows up in public records. looch forms in Delaware and Wyoming, which keep your name off the public filing, and in Florida, where the manager name is public (source: looch.money/start). This is a function of the state, not the service, so it applies to any formation provider. The practical point is that looch lets you pick a privacy-friendly state directly in the flow.
Mobile and the path after formation
This is the structural difference. LegalZoom finishes when your documents are filed and delivered. To start operating, you then go find a bank, apply separately, and wire your formation details over by hand.
looch Start is the first step inside a financial app. Once your entity is formed, you onboard into no-fee financial accounts, issue Smartcards with spend controls, accept payments, and get real-time accounting, all in the same mobile-first app you used to form the company (source: looch.money). There is no second application and no re-entering your company details with a separate provider. Formation and the financial stack are one flow.
If you are weighing entity types for a fundable startup, the Delaware C corporation guide covers why investors expect that structure.
Where LegalZoom genuinely wins
A one-sided comparison is not honest, and LegalZoom is the better choice for a real set of founders.
Brand, trust, and track record. LegalZoom has been forming companies since 2001 and has served millions of businesses. That history carries weight, and for some founders the comfort of a nationally recognized name is worth paying for. looch is a newer, narrower product.
Access to attorneys and legal advice plans. LegalZoom connects you to an attorney network and sells an ongoing Business Attorney Plan with unlimited 30-minute consultations and contract reviews. It runs $39.09 per month billed annually ($469 per year), or $259 for a 6-month term (source: legalzoom.com). If you want a lawyer you can call about a contract or a dispute, that is a service looch does not provide. looch is a financial platform, not a law firm.
Breadth of legal services. Formation is one item in LegalZoom's catalog. It also handles trademark and copyright registration, contracts and document review, wills, living trusts, power of attorney, and ongoing compliance filings. Attorney-led trademark registration is $899 plus the USPTO's $350-per-class filing fee, a last will and testament starts at $99, and a living trust starts at $399 (source: legalzoom.com). If your needs go beyond forming the company into trademarks, estate planning, or general legal work, LegalZoom covers ground looch does not.
Nationwide recognition with accountants and partners. Because so many businesses have used it, LegalZoom is a known quantity to accountants, lawyers, and partners, which can smooth handoffs.
If you mainly need a trusted legal brand, attorney access, and a wide menu of legal services beyond formation, LegalZoom is a legitimate and probably easier choice. This post is not arguing otherwise.
Where looch Start wins
For a founder whose next steps are operating and getting paid, looch Start covers more of the path:
- Much lower all-in price. $249 all-in including state filing, versus a comparable LegalZoom setup around $587 once you add the EIN, a year of registered agent, and the S corp election, plus state fees (source: looch.money/start).
- Far lower registered agent renewal. $49 per year (bundled with virtual office) versus $249 per year (source: legalzoom.com), a gap that repeats annually.
- EIN without an SSN or ITIN. Obtained at formation, about four days, ending in the IRS CP-575.
- VC-ready documents included. Stock purchase agreement, IP assignment, and 83(b) draft in the package.
- Mobile-first. Form, manage, and operate from one app.
- Formation straight into banking. No separate bank application; accounts, Smartcards, payments, and accounting are in the same flow.
looch Start vs LegalZoom: A side-by-side comparison
| Feature | looch Start | LegalZoom |
|---|---|---|
| All-in formation price | $249, state filing included | Packages $0 / $249 / $299; about $587 once EIN, registered agent, and S corp election are added, plus state filing fees |
| State filing fee | Included | Charged on top of every tier |
| EIN | Included at no extra cost | $79 add-on (bundled into Pro and Premium tiers) |
| EIN without SSN/ITIN | Yes, about 4 days, IRS CP-575 | Not a clear fit; service asks for owner SSN and a US business location |
| Registered agent, year one | Included | Sold separately at $249/year, not bundled in formation packages |
| Registered agent renewal | $49/year (with virtual office) | $249/year |
| Virtual office | Included, renews at $49/year | Not listed in formation packages |
| VC-ready docs (stock purchase, IP assignment, 83(b)) | Included | Not in published formation packages |
| S corp election | Any time, in-app, no extra cost | Paid extra; looch cites about $60, no standalone price published |
| Filing speed | 1 business day | Tiered: standard, 5-day priority, or 1-to-2-day express (paid) |
| Entity options | DE C corp, DE LLC, WY LLC, FL LLC | LLC, C corp, S corp, nonprofit and others (broad) |
| Attorney access / legal plans | Not offered | Yes; Business Attorney Plan $469/year or $259/6 months |
| Trademark, estate, contracts | Not offered | Yes, broad legal catalog |
| Mobile-first app | Yes | Web-based |
| Path into financial accounts | Yes, formation flows into no-fee accounts, Smartcards, payments, accounting | Not offered (formation and legal services only) |
Some rows in this table favor LegalZoom, and the table does not hide that. Attorney access and a broad legal catalog are real advantages for the right founder.
Who should use LegalZoom
LegalZoom is the right call if:
- You want a long-established, nationally recognized legal brand
- You want attorney access or an ongoing legal advice plan
- You need legal services beyond formation, such as trademarks, contracts, wills, or trusts
- You are comfortable adding a bank, EIN service, and other tools separately after the company is formed
Who should use looch Start
looch Start is the right call if:
- You want the lowest all-in formation cost with state filing included, and a low registered agent renewal you keep paying every year
- You need an EIN without an SSN or ITIN
- You are forming a fundable company and want VC-ready documents included
- You want to form, manage, and operate from a mobile app
- You want formation to flow directly into no-fee accounts, Smartcards, payments, and accounting, with no second application
Bottom line
LegalZoom is a trusted, broad legal-services company, and if you need attorneys and a wide legal catalog it is a strong choice. looch Start is the better fit when your goal is a fundable company at the lowest all-in cost that opens straight into your financial stack, especially if you are a foreign founder who needs an EIN without an SSN.
Ready to form your company and start operating in one app? looch Start forms your entity, gets your EIN even without an SSN, and opens your financial accounts, $249 all-in including state filing. Compare the full looch pricing before you decide.
