Setup LLC vs LegalZoom vs ZenBusiness – What’s the Best LLC Service in 2025?

Starting a business isn’t just about big ideas and hustle—it’s also about paperwork, structure, taxes, and legal compliance. If you’ve ever tried forming an LLC on your own, you know it’s no small feat.

Hey, I’m Eli Mercer—solopreneur, AI strategist, and someone who’s been through the LLC maze more than once. That’s why I tested and compared the top LLC formation services for 2025 to help you skip the stress and choose the platform that actually works. In this post, I break down Setup LLC, LegalZoom, and ZenBusiness to see who really delivers for today’s entrepreneurs.

Spoiler: One tool is faster, cheaper, and way more intuitive than the others.

Let’s dive in.

Why Forming an LLC Matters More Than Ever

LLC stands for Limited Liability Company, and it’s the go-to structure for anyone who wants personal liability protection, tax flexibility, and a legit business presence. Whether you’re freelancing full-time or launching your next SaaS venture, having an LLC can:

• Protect your personal assets from lawsuits or debts
• Allow you to open a business bank account
• Help with taxes (especially with S-Corp election)
• Boost trust with clients and partners

But most founders hit a wall with red tape: PDFs that don’t make sense, legal terms you’ve never heard of, confusing state rules—all of this slows down momentum.

That’s where LLC formation services like Setup LLC come in.

Quick Verdict: What’s the Best for Entrepreneurs in 2025?

After thoroughly comparing real-world features, UI, pricing, and support, here’s how they stack up:

• 🥇 : Setup LLC
• 🎯 Best for Basic Filing on a Budget: ZenBusiness
• ⚖️ Best for Complex Legal Situations: LegalZoom

If you want the fastest way to form an LLC and automate ownership tracking, taxes, and compliance without upsells at every turn, Setup LLC is hands-down the winner.

What Makes Setup LLC a Game-Changer?

I used Setup LLC to form an entity for one of my side hustles last year, and here’s what impressed me:

1. Automated Formation Wizard

Instead of surfing through blog posts or second-guessing the right forms, Setup LLC literally walks you through a step-by-step process. It’s like TurboTax for LLCs.

2. Live Progress Updates

I could see—which forms had been submitted, which ones were pending, and when the approval was back from the state. No guesswork, no email chains.

3. Document Storage + Ownership Tools

Setup LLC stores all your essential docs (operating agreement, EIN, formation papers) in a digital “data room.” It even manages distributions and ownership changes with a visual cap table.

4. Easy Tax Setup

Setup lets you pick between Pass-Through, S-Corp, or C-Corp taxation. For solopreneurs optimizing quarterly payments and expense deductions, that’s gold.

5. Real Customer Support

When I had a question about adding a second member to the LLC, I got a real human to guide me within 24 hours. That’s not always the case with these kinds of tools.

How It Compares: Setup LLC vs LegalZoom vs ZenBusiness

Let’s break things down simply:

🟦 Setup LLC

• 📌 Fast, transparent, and built for modern entrepreneurs
• Real-time dashboard and state integration
• Ownership, tax, and compliance automation
• Starts at $99 + state fees
• Better suited for growth-minded founders

🟧 ZenBusiness

• 📌 $0 filing tier but runs lean—expect upsells
• Offers registered agent service and basic compliance
• Good for budget-conscious freelancers
• Lacks deeper automation or ownership tools

🟥 LegalZoom

• 📌 Massive brand, but clunky experience
• Focus on legal add-ons and attorney access
• Expensive registered agent and legal fees
• Not ideal for solo founders or lean teams

Real-World Reviews: What Users Are Saying About Setup LLC

• 🟢 “Perfect for solo entrepreneurs! The dashboard tracks everything and saved me hours.” – Capterra Reviewer
• 🟡 “Customer support was responsive, but annual compliance fees surprised me.” – Trustpilot
• 🔴 “Registered agent cost is higher than ZenBusiness, but Setup’s automation is better.” – Reddit

No solution is perfect, but for most solo founders and small teams who want automation over bureaucracy, Setup LLC strikes the right balance between value and functionality.

🔍 Pros:

• Super easy to use—even if it’s your first LLC
• Automates tax structure and ownership management
• Fast setup with live filing status
• Designed for modern businesses—not boomers

⚠️ Cons:

• Registered agent fees are higher than ZenBusiness
• Complex entities (like LLPs or multi-state filings) may need extra effort
• Annual compliance tools may trigger upselling if you’re not careful

But in my experience, it’s 100% worth the price of convenience.

Who Should Use Setup LLC?

• ✅ Freelancers wanting legal protection and business legitimacy
• ✅ Small agencies who need to formalize partnerships
• ✅ SaaS founders or Shopify owners needing tax advantages
• ✅ Side hustlers ready to “go legit” and open their first business account
• ✅ Coaches, consultants, creators—anyone monetizing online

If you fall into any of these groups, Setup LLC was built for you.

Frequently Asked Questions

Q: Is Setup LLC legit for creating an LLC?
Absolutely. They’re integrated with official state filing systems and have a strong Trustpilot score. I’ve used it myself with no issues.

Q: How long does it take to get my LLC approved with Setup LLC?
It depends on your state. Some approve same week; others take 2–3 weeks. But Setup LLC tracks it in real-time so you’re never left in the dark.

Q: Can I manage multiple businesses with Setup LLC?
Yes, but you’ll need to register and pay fees for each entity separately. Setup’s dashboard makes managing multiple LLCs cleaner than most.

Q: Does Setup LLC offer support if I get stuck?
Yep—live agents respond via email and chat depending on your plan. I’ve personally received same-day help for most questions.

Q: Do I need a lawyer if I use Setup LLC?
Not for basic LLCs. If you’re forming something complex or need legal contracts, pairing Setup with a legal advisor can still be wise.

Final Thoughts: Why I Recommend Setup LLC in 2025

After testing and researching the big players—and forming my own LLCs with a couple of them—I’d stack Setup LLC at the top for 2025.

It’s:

• Fast ✅
• Simple ✅
• Transparent ✅
• Built for creators, freelancers, agencies, and lean startups ✅

Whether you’re setting up your first business or forming a new venture, Setup LLC gets you legal, compliant, and operational with fewer headaches.

Don’t waste time on paperwork. Automate it instead.

Stay smart out there,
Eli Mercer
Founder – NextGenAIFinder
Helping creators and solopreneurs automate what’s next.