Rocket Lawyer LLC Formation Review 2021: 7 Pros & Cons You Should Know

In this review, we will cut to the chase and go over what you really need to know:

  • Rocket Lawyer’s true cost and pricing
  • The turnaround time you can expect for LLC formation or incorporation
  • Rocket Lawyer’s reliability, customer reviews, support and much more

Plus, we’ll provide clear explanations of the many other relevant, formation-related services that Rocket Lawyer offers.

Below is a quick summary of our findings. Further down, you’ll find our more comprehensive review, which details our conclusions and also explains everything you need to know about Rocket Lawyer.

Is Rocket Lawyer the Right Choice for You?

Rocket Lawyer Logo

Pricing: 2/5

Turnaround Time: 4/5

Help & Support: 4/5

Customer Satisfaction: 5/5

Ease of Use: 4/5

Overall: 3.7/5
3.7/5
Rocket Lawyer Pros
Rocket Lawyer Cons

Scoring Weights: Pricing (2x), Turnaround Time (2x) and Customer Satisfaction (1.5x) have been given additional weights in our scoring.

Rocket Lawyer offers quick and simple online LLC formation and incorporation services, attorney consultations, plus a library of legal documents for either a monthly or one-time cost.

We dislike their relatively high prices and the monthly subscription requirement. If you need ongoing legal help, though, they may still be a good choice for you.

Visit RocketLawyer.com or continue scrolling to find out more about the company’s pros and cons.

Table of Contents

Rocket Lawyer Quick Overview

Rocket Lawyer LLC Formation Review

Rocket Lawyer is a San Francisco-based online legal aid company. Founded in 2008 by Charley Moore, it provides a range of legal services to entrepreneurs, small and medium-sized businesses, and individuals. Rocket Lawyer operates in the USA and in four European countries.

According to their website, Rocket Lawyer’s mission is to serve the legal needs of people in a simple, convenient, and affordable way.

We believe everyone deserves affordable and simple access to legal services.

Charley Moore, Esq., Founder & CEO of Rocket Lawyer

Rocket Lawyer offers a number of legal services to both Premium members and non-members. These services include:

  • Business formation services (for LLCs, Corporations, etc.)
  • Access to a large library of customizable legal documents
  • Document review by legal experts
  • Online consultation with licensed legal professionals
  • Free access to legal help articles

…plus many others. If online legal aid doesn’t fully meet your legal needs, members also qualify for a 40% discount when hiring a licensed attorney from within Rocket Lawyer’s network of legal professionals.

Rocket Lawyer Pricing

Rocket Lawyer Pricing

Unlike some of their competitors, Rocket Lawyer does not have tiered pricing or fixed LLC formation packages.

Rocket Lawyer lets customers choose between two different pricing options, depending on whether you’d prefer to use their services sparingly or on an ongoing basis.

Premium Membership costs $39.99 per month.

Service Premium Members Non-Members
Business Filing Service Free for first filing $99.99
Registered agent service $111.99 per year $149.99 per year
Legal documents (incl. operating agreement) Free $39.99 per document
30-minute consultation on every new legal matter Free $59.99
Obtain EIN (tax number) $59.99 $59.99

To sum up – you can choose between:

  • A $39.99 monthly subscription, which covers the basic cost of filing an LLC on your behalf, or
  • Paying higher prices for individual services, without a subscription (e.g., $100 for a business filing).

Both pricing options can be used for LLC formation and other related services.
Later in the article, we’ll break down what each of the individual services entails.

Member pricing: $39.99 per month + State fees

Rocket Lawyer’s subscription legal service is the bread-and-butter of their business. For a fixed monthly cost of $39.99, you gain access to a variety of services, including their LLC formation service.

New members are entitled to a single LLC creation at no additional cost and receive a 25% discount on any subsequent business filings.

If you decide you no longer need Rocket Lawyer’s services, you can cancel your monthly subscription at any time (you can do this from your account dashboard or by contacting Rocket Lawyer’s customer support).

Services provided for free with a subscription include:

  • First filing for an LLC or corporation
  • Unlimited access to customizable legal documents
  • 30-minute consultations on any new legal matters with legal experts
  • Document review by legal experts in case of dispute

Members also benefit from certain discounts, including:

  • a 25% discount on registered agent service
  • a 40% discount when retaining an attorney from Rocket Lawyer’s network
Note:
Rocket Lawyer offers a 7-day free trial of their premium service. You will have to provide your credit card information to sign up, but you won’t be charged if you choose to cancel within 7 days. The trial can be canceled at any time from your account dashboard.

Non-member pricing: $99 + State fees

You don’t have to become a member to use Rocket Lawyer to form your LLC. If you would rather pay for services individually, without a subscription, you can do so.

Most of Rocket Lawyer’s services are also available as standalone products. However, these standalone products tend to be expensive – there are more affordable options elsewhere.

For this reason, we don’t recommend you use Rocket Lawyer without a subscription.

Rocket Lawyer vs Competitors’ Pricing

Below, you’ll find our table that compares Rocket Lawyer’s formation prices with those of its main competitors.

Prices quoted in this table are independent of Rocket Lawyer’s package pricings. They are standardized for comparison with competitors. We used their one-time payment fees for this purpose.

We define Basic Formation, Full Formation, and Full Formation + Website below the table.

Note that Rocket Lawyer’s subscription includes one business formation for free, plus discounts on many other services.

Service Basic Formation Full Formation Full Formation + Website
Rocket Lawyer (standalone) $140 $290 -
ZenBusiness $49 $49 $299
LegalZoom $178 $477 -
Incfile $149 $149 -
Nortwest Registered Agent $225 $225 -

Basic Formation: Covers the essential business entity creation. Includes – at minimum – filing of Articles of Organization and the drafting of an Operating Agreement for an LLC or corporate bylaws for a corporation.

Full Formation: Additionally includes – at minimum – a registered agent service, which most owners will find essential.

Full Formation + Website: In addition to full formation services, includes a website, domain, security certificate, and other services necessary to securing your company’s online presence.

Which Rocket Lawyer pricing option offers the best value?

In general, the Premium membership offers much better value than the individual purchasing option.

Many of Rocket Lawyer’s products and services are free with a membership, and many more are deeply discounted. There is no minimum sign-up duration for Rocket Lawyer’s Premium service.

How can I cancel a Rocket Lawyer membership?

Customers who subscribe to the monthly membership can cancel it at any time.

If you cancel your Rocket Lawyer Premium account, any documents you have created, plus info and correspondence you’ve received from attorneys, will be saved and will remain available.

You can cancel your membership online, by email, or by calling (877) 881-0947. Click here to find out more about canceling your membership.

What is Rocket Lawyer’s refund policy?

If you have paid up-front for a product or service, you may apply to receive a prorated refund if you make your refund request within 30 days of making your purchase.

Note, however, that Rocket Lawyer does not offer refunds on formation-related services, including filing for LLC formation or the registered agent service.

Rocket Lawyer Pros

Keep reading to find out where we believe Rocket Lawyer has some advantages over its competitors.

1. Easy to use with good turnaround times

Rocket Lawyer makes it very simple and easy to form your Limited Liability Company. The entire process happens online, can be completed in a matter of minutes and involves no paperwork. You need to simply answer a series of questions regarding the LLC you would like to form, and Rocket Lawyer will take care of the rest.

Rocket Lawyer offers fairly decent turnaround times in the majority of states. Customers on online review sites report quick filing times – usually just a few days. Rocket Lawyer offers both standard and expedited filing in states where such a service is available.

Rocket Lawyer Five Star Customer Review

If you are in a hurry, you should opt into expedited filing. With expedited filing, you can ensure that you will receive a filing response as soon as possible, often within one to two business days. For a list of average processing times by state click here.

Rocket Lawyer Four Star Customer Review

2. Excellent customer reviews and good track record

Rocket Lawyer has thousands of positive reviews across multiple sites such TrustPilot, Site Jabber, ConsumerAffairs, and the BBB. As of the time of writing, we counted more than 3600 user reviews, significantly more than what much of the competition has.

The overwhelming majority of these user reviews are positive, with customers mainly praising the simplicity of Rocket Lawyer’s process and the helpfulness of their customer service.

TrustPilot – 4.7 out of 5:

Rocket Lawyer Trustpilot Customer Reviews

Check out Rocket Lawyer’s customer reviews on Trustpilot.

On the other hand, it should be noted that some users were surprised, and unhappy, to discover that their credit card was charged at the end of their free trial. If you intend to make use of Rocket Lawyer’s free trial, you should be aware that the trial will be converted into a full membership at the end of its term.

We liked that Rocket Lawyer’s representatives consistently reply to customer feedback, both positive and negative. In the case of negative reviews, the representatives offer explanations and next steps to resolve any outstanding issues.

Site Jabber – 4.5 out of 5:

Rocket Lawyer Site Jabber Customer Reviews

Check out Rocket Lawyer’s customer reviews on Site Jabber.

Rocket Lawyer has been doing business for more than a decade. They have established a reputation for trustworthiness that is backed by years of experience and an excellent track record.

3. Good value with the monthly plan

With a monthly membership, you can not only have your LLC filed without hassle, but you also receive access to a variety of other online legal services that may be useful to an entrepreneur and business owner. These include access to Rocket Lawyer’s extensive library of legal documents and free consultations with licensed legal professionals.

If you are interested in more than just Rocket Lawyer’s LLC formation and incorporation service, the monthly cost may well be worth it.

If you dislike monthly subscriptions, Rocket Lawyer also lets you buy most of their services as standalone packages. However, the costs of these standalone services can be significantly higher than those of competitors. Be sure to take a look at our other reviews to compare your options before you commit.

Rocket Lawyer does offer a free 7-day trial of their Premium subscription service, so you can try it before committing. However, you should note that the free trial does not include all the benefits of the actual paid membership. In particular, Rocket Lawyer’s LLC formation service does not appear to be included in the free trial.

According to their own help documentation, the trial will allow you to download three legal documents and ask an attorney from their network one legal question. Still, if you intend to use services other than their formation service, the free trial will let you test the waters without having to commit or spending money.

4. Contact with real attorneys

The majority of formation providers make it clear that they are not law firms and cannot provide legal advice. While this technically also applies to Rocket Lawyer, their service can connect you with licensed legal professionals, who can then provide you with legal advice on just about any legal question you may have.

Consulting with a legal professional may help you make better, more informed business choices, like making sure your LLC is structured correctly at the get-go or ensuring that you have all necessary business licenses.

Rocket Lawyer Cons

Here are some areas, we believe, Rocket Lawyer can improve upon.

1. Relatively high costs, especially without a subscription

Compared to some competitors, Rocket Lawyer’s services are priced fairly high.

At $99, for instance, their basic LLC filing service costs significantly more than what competitors like ZenBusiness and IncFile charge for a simple LLC formation.

At $150 per year, Rocket Lawyer’s registered agent service is similarly expensive. Premium membership will reduce this cost to $112 per year, but it requires a separate $39.99 monthly subscription.

In our opinion, some of the items and services, such as obtaining an EIN or buying a corporate kit and seal, are not worth the price tag and should be avoided.

Since the costs of Rocket Lawyer’s standalone items add up quickly, you should consider if the monthly subscription is worth its cost to you. If not, you may be better off with a different formation provider, as many of them offer standalone services at lower prices.

2. Automatic account conversion after trial and credit card requirement

We particularly dislike that Rocket Lawyer requires its users to input their credit card information in order to sign up for a free 7-day trial.

If you sign up for the trial, you need to be aware that it will be converted into a full membership at its conclusion, and you will be automatically charged the cost of $39.99 for the first month.

Many customers on review sites have reported being surprised to find out that their credit cards were charged after the 7-day trial. To avoid the charge, you should cancel the trial before it runs out if you don’t intend on using the service long term.

3. Does not specialize in LLC formation

Unlike some of their competitors, Rocket Lawyer does not specialize exclusively in LLC formation services. As a general rule, we always recommend choosing a more specialized service provider over a less specialized one, particularly if your LLC formation is more complex than usual.

Rocket Lawyer’s service package includes items that are not directly related to LLC formations, such as legal documents and attorney services.

If you are only looking for a bare-bones filing service and don’t need these additional perks, a more specialized service will be a better fit.

Rocket Lawyer LLC Formation Services

Rocket Lawyer advertises a variety of legal services, not all of which are relevant to your business formation needs.

Below, we have created a summary for those services which we believe you may find useful for starting your LLC and business.

Business Formation Service

$99 as standalone service, or free with the $39.99/month membership

Rocket Lawyer Four Star Customer Review

Filing an LLC on your own can be inconvenient at best and thoroughly intimidating at worst. Rocket Lawyer makes it easy for you by handling the paperwork and interacting with the relevant state government authorities on your behalf.

All you need to do is answer a series of questions regarding your future business on Rocket Lawyer’s webpage, and they will do the rest.

All US states charge a processing fee for filing a new LLC. The exact amount varies (from about $100 up to $500) and depends on the state – your total will be shown to you before check-out.

Rocket Lawyer will charge you this amount and forward it to the Secretary of State on your behalf. Some states also offer an expedited filing service for an additional fee.

How long your LLC’s formation will take will depend on the state in which you are filing and whether you opt for standard or expedited filing.

According to Rocket Lawyer, standard processing times vary from up to 13 weeks in Alabama to only a single business day in Kansas.

Most states will process your filing in around one week. For an additional fee, expedited filing will let you complete the LLC formation in three days or less.

If you choose expedited filing, you will receive your Articles of Incorporation from Rocket Lawyer electronically.

Registered Agent Service

$149.99/yr. or $111.99 with member discount

Rocket Lawyer Pricing

A legal requirement in US jurisdictions, the registered agent (RA) is a designated person or entity who receives official documents, such as court summons and other legal correspondence, on behalf of an LLC or a corporation.

An RA must be a resident of the state in which the LLC is registered and must be available during business hours. Failure to appoint a registered agent may jeopardize your company’s good standing with your state and may result in potentially harsh penalties.

Many people may ask, “Do I really need to pay for a registered agent service?” You can act as your own registered agent if you are a resident of the state where you intend to register your LLC, however, there are good reasons to avoid doing so.

For example, a registered agent’s name and address are publicly available – not ideal if you value privacy or a spam-free mailbox. As an RA, you are also supposed to be physically present during business hours, which might interfere with your plans if you travel frequently.

For a fee, Rocket Lawyer can act as your registered agent. They will receive court documents on your behalf, notify you electronically, and make your documents easily available online. Rocket Lawyer will ensure that there is always someone present to receive your official court documents.

Operating Agreements and Other Documents

Free with $39.99/month membership, otherwise $39.99 per document

Rocket Lawyer Four Star Customer Review

An operating agreement is an internal document which acts as your LLC’s rulebook; it lays out how the day-to-day running of your company will be carried out, and describes the rights, responsibilities, and roles of the members.

Several states – California, Delaware, Maine, Missouri, and New York – require an operating agreement.

And even if your state does not require an operating agreement, it is a good idea to have one. An operating agreement is useful for:

  • Better establishing the separation between you and/or members and the LLC, offering better liability protection in the future
  • Determining the voting power of the members
  • Determining how profits should be divided
  • Determining what should happen if a member would like to sell their share
  • Figuring out how to handle a situation where a member passes away or becomes otherwise incapable of participating in the business

The formation of your LLC is as good a time as any to draft an operating agreement.

Rocket Lawyer can provide you with a customizable online template for an operating agreement. Once you answer a few questions regarding your company on Rocket Lawyer’s webpage, your operating agreement will be generated for you online.

Rocket Lawyer’s document service includes DocumentDefense (for free if you are a member, or for a small fee if you are a non-member).

Should your legal document be challenged at a later date, an attorney working with Rocket Lawyer will review your dispute and help you enforce your rights.

Rocket Lawyer’s library of documents includes many other documents that you might find useful. However, if you are not a Premium member, you might find the cost a bit high, as every document has to be paid for individually.

Note:
There is no need to file an operating agreement, even in states which require you to have one. Having one signed, and keeping it on record, suffices.

Obtain a Tax ID Number (EIN) For Your LLC

$59.99

An Employer Identification Number is an ID number assigned to a business entity by the Internal Revenue Service for the purpose of identification and tracking.

Single-member LLCs that don’t choose to be treated as a corporation or partnership are usually considered disregarded entities by the IRS – this means taxes are filed on the owner’s individual tax return.

This rule does not apply to employment and excise taxes. For the purpose of those taxes, your business is still treated as a separate entity and requires a dedicated Taxpayer Identification Number. Your Employer Identification Number (EIN) serves that purpose.

You have two choices when obtaining an EIN. For a fee, you can let Rocket Lawyer file the necessary paperwork for you, or you can do it yourself.

We recommend that you request your EIN yourself. It only takes a few minutes and is entirely free. You can either use the IRS’s Online Assistant and receive your EIN immediately, or you can download and physically file a form SS-4.

Further Reading: For more information regarding the Employer Identification Number, you can refer to this (PDF) IRS publication.

Corporate Kit and Seal

$99.99 for Kit and Seal; $59.99 for Seal

Rocket Lawyer Corporate Seal and Kit

Rocket Lawyer gives you the option to buy a corporate kit and company seal, customized with your company’s name.

A corporate kit is a binder that is used to keep official company documents, such as the Articles of Incorporation or Minutes from company meetings.

No state requires you to have a corporate kit or seal. If you are just starting your new business, there may be better ways to spend your money

Do we recommend Rocket Lawyer?

Conditionally

Rocket Lawyer makes it quick and simple for you to form your LLC. All you have to do is input the necessary information and Rocket Lawyer will take care of the formalities and ensure your LLC formed as quickly as possible.

After your LLC is created, Rocket Lawyer’s legal consultations and registered agent service can keep you informed and advise on legal matters. Rocket Lawyer’s library of legal documents is certain to be useful for any new company.

Rocket Lawyer has been in business for more than a decade, establishing a reputation for trustworthiness and reliability along the way.

However, if you are simply looking for a quick LLC formation without any additional services, Rocket Lawyer’s relatively high costs may make it a less-than-ideal fit for you. Be sure to check out our best LLC services comparison and review page for more information.

Rocket Lawyer FAQs

Forming an LLC is free with a $39.99 monthly subscription or costs $99.99 without one. If you choose to become a member, only the first formation will be free, with subsequent formations receiving a 25% discount.

You can pay for Rocket Lawyer in two ways: as a monthly $39.99 subscription or as one-time fees for every individual service. Both can be used for LLC formations and other related services such as legal documents or a registered agent service.

The monthly packet provides greater value for money. You can purchase most of Rocket Lawyers services either for a one-time fee or included in a monthly subscription, but if you choose to pay as a one-time fee, the costs may be significantly higher.

Rocket Lawyer does not offer refunds on payments they have collected for formation services. However you may receive a prorated refund for other services if you request one within 30 days of purchase. To request a refund, you should send an email to [email protected] explaining your issue.

Rocket Lawyer provides legal services online. Rocket Lawyer can form your LLC for you, provide you with legal documents or connect you with licensed attorneys for personal consultations.

Rocket Lawyer is a decent option if you need both LLC formation and other legal services, such as consultations and documents. If you only need a bare-bones LLC formation, then you might want to consider other services.

You don’t necessarily have to use a lawyer. You can also form an LLC by hiring a formation service like Rocket Lawyer or by filing the paperwork on your own with the secretary of state.

Rocket Lawyer is best for people who need on-going legal advice in addition to forming an LLC. If you are only interested in filing for an LLC, you should consider some alternative providers who can provide better value for your money.

Both companies provide similar services. They include online legal documents, LLC formation services and other law-related products.

Rocket Lawyer tends to be the preferred service.  Customers gave Rocket Lawyer a score of 4.6/5 on Trustpilot while LegalZoom has a score of 4.1/5.

Yes, Rocket Lawyer forms are legal. After customizing them, you can download and print the forms so you can immediately use them.

After ordering, you can download it from Rocket Lawyer’s website. The operating agreement can be customized to your circumstances before downloading it.

Rocket Lawyer is headquartered in San Francisco, California. You can contact them either via this online form, by calling (877) 881-0947 or by mailing them at: Rocket Lawyer Inc., 182 Howard Street #830, San Francisco, California 94105.

You can easily cancel Rocket Lawyer online. To cancel, navigate to your online dashboard and cancel your account there. You can also cancel your membership by contacting customer support.

Rocket Lawyer Pros
  • Easy to use + fast turnaround times
  • Excellent customer reviews
  • Good value with monthly plan
  • Contact with real attorneys
Rocket Lawyer Cons
  • Inconvenient pricing
  • Free trial converts automatically
  • Not specialized in business formation
Andrey Doichev

Andrey Doichev

I launched my first small business in 2015. I loved airsoft, so I created a small website where I would go on to educate parents about the sport and help them buy the safest gear for their kids. Since then, I have started many similar ventures, educating millions of people on topics including entrepreneurship, marketing, website development and online privacy.

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