LegalZoom Nonprofit Review 2024

Are you looking to start a nonprofit, but you don’t want to go it alone? The DIY option can be confusing due to the multiple layers of compliance necessary for nonprofits, but it can also be hard to identify which nonprofit formation provider has the best deal.

To complement your own research, we invested countless hours into finding the best services available,  including our detailed LegalZoom nonprofit review. Our goal is to provide you with the info you need to make a smart decision for your company.

Pros & Cons of LegalZoom’s Nonprofit Service

Pros

• LegalZoom’s satisfaction guarantee ensures that if you’re not completely happy with their services, they’ll refund any fees you paid to LegalZoom as long as you request your refund within 60 days.
• With nearly 4 million customers served since they opened their doors back in 2001, they have a client volume that most competitors can’t touch, and speaks to how popular LegalZoom is.
• Their website is protected at all times by Norton Web Security, which scans for malware and other vulnerabilities while encrypting your private data.
• They understand that a “one size fits all” approach doesn’t work for nonprofit formation, with three service packages supplemented by some a la carte features. It’s easy to find the level of service that’s right for your business.

Cons

• When it comes to customer feedback, LegalZoom stumbles a bit. It’s not overly critical, but it is a mixed bag, which is to be expected somewhat with a company of this size. The bigger your operation, the higher the likelihood that some unsatisfied customers will slip through the cracks.

Legalzoom Nonprofit Pricing and Features

With LegalZoom, you have the option of three nonprofit formation packages, ranging from $99 to $359 (plus state filing fees): Economy, Standard, and Express Gold.

Economy = $99 + State Filing Fees

• What It Includes: The basics of formation come with this package, including a name availability check, and the preparation and filing of your articles of incorporation. In addition, you get their Peace of Mind Review in which they double-check your forms for potential mistakes, ten sample membership certificates to provide proof of membership, and LegalZoom’s newsletter and nonprofit formation guidebook.
• Who It’s Right For: Any entrepreneur looking for the fundamental basics of nonprofit formation should be interested in this package.

Standard = $239 + State Filing Fees

• What It Includes: Everything from the Economy package, plus a customized nonprofit kit and seal to keep your important documents organized, 20 customized membership certificates, and minutes forms to maintain records for your business meetings.
• Who It’s Right For: The kit and seal are largely symbolic these days, so we’re not sure this package is all that valuable. This package costs $140 more than Economy, and there just doesn’t seem to be that much value here.

Express Gold = $359 + State Filing Fees

• What It Includes: Everything from the Standard package, plus rush order processing, two-day delivery of your completed filing, and expedited processing for your federal tax ID number or Employer Identification Number (EIN). Please note that this does not include your actual EIN, which costs an extra $49 to add on to Express Gold.
• Who It’s Right For: This is basically the “I’m in a hurry” package.

Recommended Package: In our opinion, most customers should be able to get by with adding an EIN to the Economy tier. Most nonprofits do need an EIN, which makes it a bit odd that it’s not included in any of LegalZoom’s formation packages, but a total of $178 for nonprofit formation and an EIN is still a solid price point.

LegalZoom Nonprofit Reviews

LegalZoom has earned 4.2 out of five stars on Trustpilot. Positive reviews commented on the ease of use of LegalZoom’s platform with some customers mentioning they had difficulty establishing their organization prior to using LegalZoom. The company responds to most negative reviews in a timely manner and makes an effort to address issues as they appear in reviews. 

Here are some verified reviews from Trustpilot by people who used LegalZoom to form their nonprofits:

“LegalZoom has been with me every step of the way as I began my NonProfit business. They have taken the guess work and the stress out of keeping my small business in compliance and in good standing. They are thorough and patient as I ask all the questions I need to make the right choices.”

“The agent [was] professional however legal zoom has been very irresponsible with my order for nonprofit.”

“If I could check all the positives for each agent I came in contact with these past 14 months since starting my nonprofit business I would have! Everyone that I have worked with at LegalZoom has been incredibly professional & extremely helpful! 10\10! Thank you so much for being so supportive & [knowledgeable]!”

“I could not register my nonprofit organization for years and applied to LegalZoom. I called LegalZoom and the agent was patient, knowledgeable, kind and help[ed] a lot, taking away my million concerns.”

Alternatives to LegalZoom’s Nonprofit Service

While LegalZoom is a well-known provider of legal services for nonprofits, several alternatives offer comparable or specialized services. These options cater to different needs and budgets, providing founders with choices when establishing their nonprofit organizations.

Northwest Registered Agent

Northwest Registered Agent offers a comprehensive nonprofit formation service with a focus on privacy and personalized support. The company provides registered agent services in all 50 states, which is included free for the first year with its formation package. Northwest is known for its transparent pricing structure and lack of upsells. The company’s service includes preparation and filing of Articles of Incorporation, obtaining an EIN, and creating initial resolutions and bylaws. What sets Northwest apart is its in-house support team of former lawyers, accountants, and entrepreneurs who offer expert guidance throughout the process.

Swyft Filings

Swyft Filings provides a user-friendly platform for nonprofit formation with a reputation for quick turnaround times. The company’s basic package includes preparation and filing of formation documents, a name availability search, and online access to incorporation documents. Swyft Filings also offers a 100% satisfaction guarantee and provides a dedicated business specialist for each client. While the company’s base price is competitive, some services that other providers include in their standard packages may require additional fees with Swyft Filings.

Bizee

Formerly known as Incfile, Bizee offers nonprofit formation services with a focus on affordability and simplicity. The company’s basic package includes preparation and filing of formation documents, registered agent service for the first year, and lifetime company alerts. Bizee’s platform is designed to be easy to use, making it a good choice for first-time nonprofit founders. Bizee also provides a wealth of educational resources on its website to help guide users through the nonprofit formation process and beyond.

Instant Nonprofit

Instant Nonprofit specializes exclusively in nonprofit formation, setting it apart from more generalist legal service providers. The company’s service includes not only state incorporation, but also assistance with obtaining 501(c)(3) tax-exempt status from the Internal Revenue Service (IRS). Instant Nonprofit offers different package levels to suit various needs and budgets. The company’s expertise in the nonprofit sector means it can provide tailored advice on governance structures, bylaws, and compliance issues specific to charitable organizations. While Instant Nonprofit’s services may be pricier than some alternatives, the specialized focus can be valuable for founders seeking in-depth nonprofit knowledge.

Is LegalZoom Right For Your Nonprofit?

LegalZoom offers a streamlined, user-friendly service for nonprofit formation, but it may not be the ideal choice for every organization. Consider your specific needs, budget, and level of expertise when deciding if LegalZoom is the right fit for your nonprofit.

It’s particularly well-suited for:

• First-time nonprofit founders who need expert guidance 
• Organizations looking for a balance between affordability and comprehensive service
• Nonprofits that want access to a wide range of legal documents 

However, it may not be the best fit if:

• You require specialized expertise in nonprofit law or complex organizational structures
• You’re on a very tight budget and can handle most of the paperwork yourself

The bottom line? LegalZoom provides a solid option for nonprofit formation that works well for many organizations. Its user-friendly interface, comprehensive document preparation, and additional legal services can be valuable for those new to the nonprofit world or seeking convenience. 

However, it’s important to weigh the costs against your specific needs and consider alternatives that might offer more specialized nonprofit expertise or lower prices. Ultimately, the right choice will depend on your organization’s unique circumstances, the complexity of your nonprofit structure, and your comfort level with handling legal processes.

Frequently Asked Questions