1Password vs LastPass
A side-by-side comparison of two security tools for small businesses.
Bottom line
For most small businesses, 1Password edges out LastPass on overall SMB fit (9/10 vs 7/10), especially for 1Password fits small businesses where multiple employees share access to cloud…. That said, weigh pricing and the feature breakdown below against your needs.
At a glance
| Attribute | 1Password | LastPass |
|---|---|---|
| SMB score | 9/10 | 7/10 |
| Category | Security | Security |
| Free tier | No | Yes |
| Starting price | From $3/user/mo | From $3/user/mo |
| Best for | 1Password fits small businesses where multiple employees share access to cloud tools—think agencies, e-commerce operations, small dev shops, and professional services firms juggling a dozen or more SaaS subscriptions. It's especially valuable for teams that have experienced even one password-related incident—a terminated employee who still had access, a phishing link clicked because a weak password got reused, or a data breach notice from a vendor. The Teams Starter Pack's flat pricing makes it budget-predictable for companies under 10 people, and the Business tier scales cleanly for growing teams needing audit logs, advanced permissions, and SSO integrations. | LastPass Business suits professional services firms, agencies, and small retailers with 5–250 employees who share application credentials across teams without a dedicated IT department. It works particularly well for companies running SaaS-heavy stacks—think accounting, CRM, project management, and social media tools—where employees routinely log into six or more web applications daily. Healthcare and legal offices that need documented access controls for compliance purposes also benefit from the policy enforcement and audit logging features. Remote and hybrid teams get strong value because the cross-device sync and browser-agnostic extensions mean consistent access regardless of where employees are working. |
1Password
Secure every team login with a shared vault, strong password generation, and breach alerts built for businesses of any size.
Picture a five-person marketing agency where the owner's Netflix password is saved in a sticky note and three employees share a single login to the client's ad account. That's not just messy—it's a liability waiting to happen. 1Password is the tool that cleans up that situation p…
Key features
- Encrypted vaults with role-based sharing permissions across team members
- Watchtower scans for breached passwords, weak credentials, and missing 2FA
- Browser extensions autofill logins on web apps without exposing raw passwords
- Admin console lets owners provision, restrict, or revoke access instantly
- Stores SSH keys, API tokens, secure notes, and documents alongside passwords
- Travel Mode temporarily removes sensitive vaults from devices crossing borders
- Guest accounts allow limited vault access for contractors without full licenses
- Mobile apps for iOS and Android with biometric unlock support
Limitations
The $19.95/month flat rate is only cost-effective up to 10 users; beyond that, the Business plan charges per seat, so verify current pricing on the vendor site before budgeting. Some SMBs find the vault-and-permission model has a small learning curve—employees accustomed to browser-saved passwords may resist the behavioral change for several weeks. 1Password does not offer a permanent free tier for teams; there's a 14-day trial, but ongoing use requires a paid plan. Offline access exists but is limited by design, and a few legacy enterprise integrations may require the more expensive Business or Enterprise tier. Self-hosted deployment is not available.
LastPass
Centrally manage every business password with encrypted vaults, policy controls, and zero-friction autofill across devices.
Picture a 12-person marketing agency where three account managers share login credentials for five client ad platforms—passwords scribbled in a shared Google Doc, rotated inconsistently, and occasionally emailed in plain text. That situation describes the exact security gap LastP…
Key features
- Encrypted individual vaults for every employee across unlimited devices
- Admin console to provision users, revoke access, and enforce password policies
- Shared credential folders with granular permissions for teams or departments
- Security Dashboard that scores and flags weak, reused, or compromised passwords
- Built-in multi-factor authentication options including authenticator apps and hardware keys
- Automated password capture and autofill via browser extensions and mobile apps
- Emergency access delegation so trusted contacts can request vault access if needed
- Dark web monitoring that alerts users when stored credentials appear in known breaches
Limitations
LastPass has experienced high-profile security incidents, including a significant breach disclosed in late 2022 in which encrypted vault data was accessed by attackers—prospective customers should review the company's detailed post-mortems and decide whether the company's subsequent security improvements meet their risk tolerance. Pricing scales per user per month, so costs grow noticeably as headcount increases; verify current team tiers on the vendor site. The free plan no longer supports multi-device sync, making it impractical for business use without a paid subscription. Some users report the browser extension occasionally conflicts with site-specific login flows or autofill fields on custom-built web apps, requiring manual entry as a workaround.
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Frequently asked questions
- Is 1Password or LastPass better for small businesses?
- For most small businesses, 1Password edges out LastPass on overall SMB fit (9/10 vs 7/10), especially for 1Password fits small businesses where multiple employees share access to cloud…. That said, weigh pricing and the feature breakdown below against your needs.
- How does pricing compare between 1Password and LastPass?
- 1Password offers paid plans from about $3/mo. LastPass offers a free tier or trial with paid plans from about $3/mo. Always confirm current plans on each vendor's website before you commit.
- Which is cheaper, 1Password or LastPass?
- 1Password has the lower advertised entry price ($3/mo), but the best value depends on the plan tier and seats your business actually needs.
- When should I choose 1Password over LastPass?
- 1Password is a strong fit for 1Password fits small businesses where multiple employees share access to cloud tools—think agencies, e-commerce operations, small dev…. Lean toward LastPass if you need LastPass Business suits professional services firms, agencies, and small retailers with 5–250 employees who share application credentials….
Read the full profiles: 1Password · LastPass · All Security tools