National Advertising Division Finds Certain ZenBusiness LLC Formation Services Claims Supported; Recommends Comparative Claim be Modified
Following a challenge from competitor Tailor Brands Ltd., BBB National Programs’ National Advertising Division found certain ZenBusiness Inc. filing guarantee, “one-day processing,” and “businesses started” claims for its LLC formation services supported, but recommended ZenBusiness modify a challenged comparative claim.
New York, NY, Oct. 23, 2025 (GLOBE NEWSWIRE) -- Following a challenge from competitor Tailor Brands Ltd., BBB National Programs’ National Advertising Division found certain ZenBusiness Inc. filing guarantee, “one-day processing,” and “businesses started” claims for its LLC formation services supported, but recommended ZenBusiness modify a challenged comparative claim.
Tailor Brands and ZenBusiness are competitors in the marketplace for business formation services and operate digital platforms designed to support businesses with LLC formation, registered agent services, and tax and financial services.
Accuracy of Filing Claims
At issue for the National Advertising Division (NAD) was the express claim that “ZenBusiness offers a performance guarantee of 100% accuracy in its filings” as well as the implied claim that ZenBusiness’s filings are more accurate than those of Tailor Brands.
NAD determined that ZenBusiness substantiated the claim that it offers a 100% accuracy guarantee. However, in the context of a comparison to Tailor Brands, NAD determined that one message reasonably conveyed is that, by contrast, Tailor Brands does not strive to provide accuracy or correct internal filing errors.
Accordingly, NAD recommended that ZenBusiness modify its advertising to avoid conveying the message that Tailor Brands does not work to provide accuracy in its filings.
One-Day Processing Claim
At issue for NAD was ZenBusiness’s claim that it will process LLC formations in one day, and whether this claim adequately disclosed that it refers only to ZenBusiness’s internal processing time, not any additional processing time by the Secretary of State.
During the proceeding, ZenBusiness stated it would modify its advertising to make clearer that one-day processing is not included with its “free” starter package.
NAD determined that the advertising is reasonably understood as referring only to ZenBusiness’s processing time, and that the disclosures are adequate. Accordingly, NAD concluded that the modified one-day processing claim is supported.
Number of Businesses Claims
At issue for NAD was the claim that ZenBusiness “has launched more than 800k successful businesses.” During the proceeding, ZenBusiness stated it would voluntarily modify the claim to “800k+ businesses started,” omitting the description of the businesses as “successful.”
NAD determined that the modified claim regarding the number of businesses “started” or “formed” with assistance from ZenBusiness was supported.
During the proceeding, ZenBusiness voluntarily agreed to permanently discontinue a rating claim, modify certain claims to accurately reflect its pricing, policies, and ratings, and modify a celebrity endorsement to clearly and conspicuously disclose a material connection. Therefore, NAD did not review the claims on their merits and will treat the discontinued and modified claims, for compliance purposes, as though NAD recommended they be discontinued.
In its advertiser statement, ZenBusiness stated that it “will comply with NAD’s recommendation.”
All BBB National Programs case decision summaries can be found in the case decision library. For the full text of NAD, NARB, and CARU decisions, subscribe to the online archive. Per NAD/NARB Procedures, this release may not be used for promotional purposes.
About BBB National Programs: BBB National Programs, a non-profit organization, is the home of U.S. independent industry self-regulation, currently operating more than 20 globally recognized programs that have been helping enhance consumer trust in business for more than 50 years. These programs provide third-party accountability and dispute resolution services that address existing and emerging industry issues, create fair competition for businesses, and a better experience for consumers. BBB National Programs continues to evolve its work and grow its impact by providing business guidance and fostering best practices in arenas such as advertising, child-and-teen-directed marketing, data privacy, dispute resolution, automobile warranty, technology, and emerging areas. To learn more, visit bbbprograms.org.
About the National Advertising Division: The National Advertising Division (NAD) of BBB National Programs provides independent self-regulation and dispute resolution services, guiding the truthfulness of advertising across the U.S. NAD reviews national advertising in all media and its decisions set consistent standards for advertising truth and accuracy, delivering meaningful protection to consumers and create fair competition for business.
Contact:
Jennie Rosenberg
Media Relations
BBB National Programs
press@bbbnp.org
Name: Jennifer Rosenberg Email: jrosenberg@bbbnp.org Job Title: media relations
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