LegalZoom

{{Infobox company

| name = LegalZoom.com, Inc.

| logo = LegalZoom Logo.png

| logo_caption = LegalZoom logo

| type = Public

| traded_as = {{ubl|class=nowrap|{{NASDAQ|LZ}}|Russell 2000 component}}

| founded = {{Start date and age|2001|03|12}}

| founders = {{ublist| Brian P.Y. Liu |Brian S. Lee| Edward R. Hartman| Robert Shapiro}}

| hq_location = Mountain View, California, U.S.

| area_served = United States

| key_people = {{ublist| Jeffrey Stibel (CEO) }}

| industry = {{ublist|Online legal services|Legal technology}}

| num_employees = 1,190

| num_employees_year = 2023

| revenue = {{Increase}} {{US$|661 million|link=yes}}

| revenue_year = 2023

| operating_income = {{Increase}} {{US$|21.1 million}}

| income_year = 2023

| net_income = {{Increase}} {{US$|13.9 million}}

| net_income_year = 2023

| assets = {{Increase}} {{US$|448 million}}

| assets_year = 2023

| equity = {{Increase}} {{US$|169 million}}

| equity_year = 2023

| website = {{url|legalzoom.com}}

| footnotes = {{Cite web|url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1286139/000128613924000031/lz-20231231.htm|title=LegalZoom 2023 Annual Report (Form 10-K)| date=February 29, 2024 |publisher=U.S. Securities and Exchange Commission}}{{cite web | url = https://www.legalzoom.com/about-us/executive-bios | title = Leadership: Management Team, Board of Directors, Legal Advisory Board | website = LegalZoom | access-date = March 3, 2021}}

}}

LegalZoom.com, Inc. is an American online legal technology and services company launched in 2001.{{cite web |title=LLRXBuzz |url=http://www.llrx.com/buzz/buzz48.htm |url-status=dead |archive-url=https://web.archive.org/web/20120221224614/http://www.llrx.com/buzz/buzz48.htm |archivedate=2012-02-21 |accessdate=2012-01-16}} It helps its customers with various online legal services through personalized attorney guidance from an independent network of attorneys and the LegalZoom-owned law firm, LegalZoom Legal Services, as well as self-service technology and care specialists. Available services include wills and living trusts,{{cite news|last1=Bernstein|first1=Fred|title=Being of Sound Mind, and a $55 Consultation|url=https://www.nytimes.com/2002/05/16/technology/being-of-sound-mind-and-a-55-consultation.html |work=The New York Times|date=16 May 2002|accessdate=July 3, 2017}} business compliance such as licenses and permits,{{cite web|title=Incorporation: The Web Can Help |url=https://www.pcmag.com/article2/0,2817,2346625,00.asp |publisher=PC Magazine|accessdate=July 3, 2017}} copyright registrations, and trademark applications. The company also offers attorney referrals and registered agent services.{{cite web |title=Registered agent market share|url=http://www.northwestregisteredagent.com/registered-agent-marketshare.html |publisher=Northwest Registered Agent, LLC |accessdate=July 3, 2017}}

Cited as a disruption to traditional consumer legal services,{{cite web | last=Sonderegger | first=Dean | title=Want To Know The Future Of Legal Tech? Ask Your Accountant | website=Above the Law | date=June 27, 2017 | url=https://abovethelaw.com/2017/06/want-to-know-the-future-of-legal-tech-ask-your-accountant/ | access-date=June 9, 2022}} the company asserts that this disruption benefits people who otherwise could not hire a lawyer by expanding their access to legal services.{{cite news | last = Li | first = Victor | title = Avvo, LegalZoom and Rocket Lawyer CEOs say their products help bridge access-to-justice gap | newspaper = ABA Journal | publisher = American Bar Association | date = March 17, 2017 | url = http://www.abajournal.com/news/article/techshow_keynote_panelists_reflect_on_regulations_and_consumer_service | access-date = May 19, 2017}}

LegalZoom was founded by Brian S. Lee,{{cite web |last=Chang |first=Andrea |title=Entrepreneur Brian Lee is business partner to the stars |url=https://www.latimes.com/business/la-xpm-2013-feb-09-la-fi-himi-brian-lee-20130210-story.html |url-status=live |archive-url=https://web.archive.org/web/20130402105826/https://articles.latimes.com/2013/feb/09/business/la-fi-himi-brian-lee-20130210 |archive-date=April 2, 2013 |access-date=July 3, 2017 |website=Los Angeles Times}} Brian Liu,{{cite web |date=December 1, 2009 |title=Starting a Business in A Down Economy: The LegalZoom Story |url=https://www.legalzoom.com/articles/starting-a-business-in-a-down-economy-the-legalzoom-story |access-date=June 9, 2022 |website=legalzoom.com}} Edward Hartman,{{cite web |date=May 2, 2022 |title=Edward Hartman |url=https://www.legalzoom.com/author/edward-hartman |access-date=June 9, 2022 |website=LegalZoom}} and Robert Shapiro.{{cite web |date=January 22, 2004 |title=First online dating, then online wedding planning, now this |url=https://www.usatoday.com/tech/webguide/internetlife/2004-01-22-online-divorce_x.htm |access-date=2023-02-19 |website=USA Today}}

Reception

Based on concerns that LegalZoom's services were a form of legal advice, the North Carolina State Bar issued a cease and desist order in 2008. After an investigation by a special referee, the court determined that LegalZoom's practices "do not constitute the unauthorized practice of law". Similar lawsuits in other states were settled or dismissed.{{cite news | last = Ambrogi | first = Robert | title = Latest legal victory has LegalZoom poised for growth | publisher = ABA Journal | date = August 2014 | url = http://www.abajournal.com/magazine/article/latest_legal_victory_has_legalzoom_poised_for_growth/}}

The September 2012 issue of Consumer Reports magazine gave mixed reviews to the computer-aided legal forms generated by LegalZoom and two of its competitors, Nolo (formerly Nolo Press) and Rocket Lawyer. The evaluation found that all three companies provided documents "for a fraction of what you'd pay a lawyer." The Consumer Reports review also said that "using any of the three services is generally better than drafting the documents yourself without legal training or not having them at all. But unless your needs are simple... none of the will-writing products is likely to entirely meet your needs." It also found in some cases, the other non-will documents weren't specific enough or contained language that could potentially lead to an unintended result.{{cite news | title = Legal DIY websites are no match for a pro: They provide services for a fraction of what you'd pay a lawyer | newspaper = Consumer Reports | date = September 2012 | url = http://www.consumerreports.org/cro/magazine/2012/09/legal-diy-websites-are-no-match-for-a-pro/index.htm | access-date = May 30, 2017}}

In 2015, LegalZoom and the North Carolina State Bar Association settled years of litigation by agreeing that companies like LegalZoom, which offer automated legal document preparation, will not violate North Carolina's prohibitions against the unauthorized practice of law if the companies register with the state and comply with certain consumer protection procedures.{{cite news | last = Rogers | first = Joan | title = N.C. Law Regulates LegalZoom, Other Legal Doc Providers | publisher = Bloomberg BNA | date = July 26, 2016 | url = https://bol.bna.com/n-c-law-regulates-legalzoom-other-legal-doc-providers/ | access-date = June 14, 2017}} Following the settlement, the US Federal Trade Commission and the US Department of Justice jointly advised the North Carolina Legislature that the state should avoid placing overly broad restrictions on companies that offer computer-facilitated legal services.{{cite news | last = Kroh | first = Eric | title = DOJ, FTC Say Legal Documents Software Helps Consumers | newspaper = Law360 ("A LexisNexis Company") | date = June 13, 2016 | url = https://www.law360.com/articles/806288/doj-ftc-say-legal-documents-software-helps-consumers | access-date = May 24, 2017}} In discussing the potential benefits from such software and websites, the two agencies stated that "[i]nteractive software for generating legal forms may be more cost-effective for some consumers, may exert downward price pressure on licensed lawyer services, and may promote the more efficient and convenient provision of legal services. Such products may also help increase access to legal services."{{cite web | url = https://www.ftc.gov/system/files/documents/advocacy_documents/comment-federal-trade-commission-staff-antitrust-division-addressing-north-carolina-house-bill-436/160610commentncbill.pdf | title = Joint advisory letter from the Federal Trade Commission and Department of Justice, re North Carolina HB 436 | date = June 10, 2016 | access-date = May 24, 2017 | quote = [C]onsider the benefits of interactive websites for consumers and competition...}}

Achievements and acquisitions

LegalZoom was a nominee for the American Bar Association's 2005 Louis M. Brown Award.{{cite web |date=2005 |title=List of Recipients and Nominees - Louis M. Brown Award for [Increasing] Legal Access |url=https://www.abanet.org/legalservices/delivery/2005nomineesforweb.pdf |url-status=dead |archive-url=https://web.archive.org/web/20050319141812/https://www.abanet.org/legalservices/delivery/2005nomineesforweb.pdf |archive-date=March 19, 2005 |publisher=American Bar Association Standing Committee on The Delivery of Legal Services |quote=Nominee: LegalZoom.com}} In 2011, Business Insider ranked LegalZoom 27th on its list of the world's most valuable startups,[http://www.businessinsider.com/2011-digital-100#27-legalzoom-27 "The 100 Most Valuable Startups In The World, Revamped And Revised!"] Business Insider, October 7, 2011. and in 2012, Fast Company ranked LegalZoom 26th on its list of the most innovative companies.David Lidsky, [http://www.fastcompany.com/3017406/most-innovative-companies-2012/26legalzoom "Most Innovative Companies 2012,"] Fast Company, February 7, 2012.

In September 2012, LegalZoom formed a partnership with the United Kingdom-based legal services provider QualitySolicitors, as part of which the companies jointly offer online legal services in the United Kingdom including company formations and divorce documents.{{cite news |date=20 September 2012 |title=LegalZoom to tie up with QualitySolicitors for British launch |publisher=The Lawyer |url=http://www.thelawyer.com/legalzoom-to-tie-up-with-qualitysolicitors-for-british-launch/1014411.article |accessdate=22 September 2012}}

On January 6, 2014, European private capital firm Permira announced its intent to acquire $200 million in the outstanding equity of LegalZoom and become its largest shareholder pending regulatory approval.{{cite web |title=Permira to take controlling stake in LegalZoom.com |url=https://www.reuters.com/article/permira-legalzoom-idUSL2N0KF0EO20140106 |accessdate=23 June 2014 |website=www.reuters.com |publisher=Reuters}} On February 14, 2014 Permira announced that the deal was complete.{{cite web |date=14 February 2014 |title=Permira Completes $200M LegalZoom Buy |url=http://www.socaltech.com/permira_completes____m_legalzoom_buy/s-0053598.html |website=socalTECH}}

In 2015, LegalZoom announced they were to make their first UK acquisition. The acquired firm was Beaumont Legal, a 200-year-old firm in Wakefield, West Yorkshire, England which describes itself as one of the largest conveyancers in the country.{{cite news |last=Hyde |first=John |date=December 7, 2015 |title=LegalZoom to make first UK acquisition |newspaper=The Law Society Gazette |location=London |url=https://www.lawgazette.co.uk/news/legalzoom-to-make-first-uk-acquisition/5052608.fullarticle |access-date=June 2, 2017}}

In 2021, LegalZoom acquired Earth Class Mail, a virtual mailbox service for businesses, for $63 million.{{Cite web |last=Friel |first=Katie |date=2021-11-12 |title=California company zooms away with San Antonio tech firm in multimillion-dollar deal |url=https://www.mysanantonio.com/business/technology/article/San-Antonio-tech-company-earth-mail-legal-zoom-16615438.php |access-date=2024-12-12 |website=MySA |language=en}}{{cite web |date=10 November 2021 |title=LegalZoom Acquires Leading Virtual Mailbox Provider, Earth Class Mail |url=https://investors.legalzoom.com/news-releases/news-release-details/legalzoom-acquires-leading-virtual-mailbox-provider-earth-class |access-date=17 December 2021 |website=investors.legalzoom.com |location=Glendale, CA |language=en}}

Also in 2021, LegalZoom announced its initial public offering and became the first publicly traded company to own and operate a law firm in the United States.{{Cite web |last=Singh |first=Pia |date=2021-06-30 |title=LegalZoom shares jump 35% in market debut; CEO sees further opportunity in online legal services |url=https://www.cnbc.com/2021/06/30/legalzoom-debuted-up-30percent-ceo-sells-further-push-into-digital-market.html |access-date=2025-05-08 |website=CNBC |language=en}} Later that year, LegalZoom expanded its network of attorneys following the Arizona Supreme Court approval of an alternative business structure license.

In 2022, LegalZoom acquired Revv, a Global SaaS document automation and form template company based in Bangalore, India.{{Cite press release |date=17 Oct 2022 |title=LegalZoom Acquires Document Automation and Forms Template Company |url=https://www.globenewswire.com/news-release/2022/10/17/2535573/0/en/LegalZoom-Acquires-Document-Automation-and-Forms-Template-Company-Revv.html |access-date=27 Nov 2022 |website=globenewswire.com}}

In 2024, Inc. named LegalZoom its Power Partner Award Winner, recognizing leading B2B companies in the United States with proven track records of supporting entrepreneurs and company growth.{{cite press release| title=Inc. Names LegalZoom as a 2024 Power Partner Award Winner | website=GlobeNewswire News Room | date=October 22, 2024 | url=https://www.globenewswire.com/news-release/2024/10/22/2966781/0/en/Inc-Names-LegalZoom-as-a-2024-Power-Partner-Award-Winner.html | access-date=May 8, 2025}}

In 2025, LegalZoom acquired Formation Nation, a small business services company focused on business formation and compliance.{{cite press release | title=LegalZoom Announces Acquisition of Formation Nation to Accelerate Go-To-Market Strategy and Expand Portfolio of Small Business Solutions | website=LegalZoom.com, Inc. | date=February 10, 2025 | url=https://investors.legalzoom.com/news-releases/news-release-details/legalzoom-announces-acquisition-formation-nation-accelerate-go | access-date=May 8, 2025}}