Is LegalZoom Legit

LegalZoom is a well-established company with a solid track record. But these past controversies warrant a closer look into its reliability.

LegalZoom is a household name in the business formation industry. It has everything first-time and seasoned entrepreneurs need to start, run, and manage their companies.

But does that mean you can trust it with yours? Use this guide to determine if your business is in good hands with LegalZoom.

Is LegalZoom A Legit Company?

Yes, LegalZoom is a legitimate company where business owners can access expert legal assistance on a budget. Since 2001, it has helped over 4 million businesses meet their needs.^[1]

It has received mostly positive customer reviews, which is impressive considering it's been around for 20+ years. Plus, it's accredited by the Better Business Bureau with an A+ rating.

LegalZoom's reputation is pretty solid, but that doesn't mean it hasn't faced issues in the past. More on that in the next section.

What Is the Controversy with LegalZoom?

LegalZoom has previously faced controversies about its business practices, specifically its authority to practice law in some states.

For example, the company was involved in a legal dispute with the North Carolina State Bar, which ended in a $10.5 million settlement in 2015.^[4]

In 2017, an intellectual property law firm filed an antitrust lawsuit against LegalZoom in California for unauthorized practice of law. The case eventually ended in a settlement in 2019. However, the terms remained confidential.^[5]

What Makes LegalZoom Trustworthy?

LegalZoom's years of experience and overall positive reviews are why it remains a go-to provider of business and legal services. But those aren't the only reasons many entrepreneurs trust it.

Here are the others:

• Transparent pricing
  LegalZoom's pricing is displayed clearly on its website, so you know exactly how much you have to spend. All charges are explained in detail during the checkout process. You can double-check the details before payment.
  Want multiple services but don't have the budget? LegalZoom has a payment plan that allows you to pay for certain services in affordable monthly installments. Your order total just has to be $200 or more.^[6]

• Accuracy and money-back guarantees
  LegalZoom's competitive refund policy offers a full refund on most orders within 60 days of purchase.^[7] It'll also correct any errors in your documents and refile them at no additional cost.

  For its tax services, LegalZoom will shoulder up to $10,000 in penalty fees or interest rates resulting from its mistake.^[8]

• Enhanced security and privacy
  LegalZoom implements security measures like advanced data encryption, multi-factor authentication, and password change alerts to keep your data safe.

  It also constantly updates and upgrades these systems to ensure your private and personal information stays that way.

• Extended customer support hours
  LegalZoom makes it easy to reach out to its customer support by phone, email, or live chat. They're available from 5 AM to 7 PM PT on weekdays and from 7 AM to 4 PM PT on weekends.^[9]
  Make sure to also check out LegalZoom's Article Center for its articles and online guides. These can be useful for navigating the business world.

How Does Legalzoom Work?

You can easily access LegalZoom's services by signing up for an account on its online platform. It just takes a few minutes and several clicks.

Here are some of the services you can get:

• Business entity formation
  
• Registered agent services
  
• Annual report filing
  
• Business legal assistance
  
• Legal form templates
  
• Tax preparation and filing

Additionally, LegalZoom is one of the few companies that can form nonprofits, limited partnerships, and limited liability partnerships. Most of its competitors can only form LLCs and corporations.

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Bottom Line

There's no question that LegalZoom is a legitimate company. It remains a solid option, especially if you need expert legal advice on a budget.

However, no company is without its share of ups and downs - and LegalZoom is no different. Make sure you weigh the pros and cons beforehand so you'll feel confident about your choice.

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