LegalZoom

Last updated
LegalZoom.com, Inc.
Company type Public
Industry
FoundedMarch 12, 2001;23 years ago (2001-03-12)
Founders
Headquarters Glendale, California, U.S.
Area served
United States
Key people
RevenueIncrease2.svg US$661 million (2023)
Increase2.svgUS$21.1 million (2023)
Increase2.svgUS$13.9 million (2023)
Total assets Increase2.svgUS$448 million (2023)
Total equity Increase2.svgUS$169 million (2023)
Number of employees
1,190 (2023)
Website legalzoom.com
Footnotes /references
[1] [2]

LegalZoom.com, Inc. is an American online legal technology and services company launched in 2001. [3] It helps its customers create legal documents without necessarily having to hire a lawyer. Available documents include wills and living trusts, [4] business formation documents, [5] copyright registrations, and trademark applications. The company also offers attorney referrals and registered agent services. [6]

Contents

Cited as a disruption to traditional consumer legal services, [7] the company asserts that this disruption benefits people who otherwise could not hire a lawyer by expanding their access to legal services. [8]

LegalZoom was founded by Brian S. Lee, [9] Brian Liu, [10] Edward Hartman, [11] and Robert Shapiro. [12]

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. [13]

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. [14]

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. [15] 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. [16] 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." [17]

Achievements and acquisitions

LegalZoom was a nominee for the American Bar Association's 2005 Louis M. Brown Award. [18] In 2011, Business Insider ranked LegalZoom 27th on its list of the world's most valuable startups, [19] and in 2012, Fast Company ranked LegalZoom 26th on its list of the most innovative companies. [20]

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. [21]

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. [22] On February 14, 2014 Permira announced that the deal was complete. [23]

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. [24]

In 2021, LegalZoom acquired Earth Class Mail, a virtual mailbox service for businesses, for $63 million. [25] [26]

In 2022, LegalZoom acquired Revv, an India based document automation and form template company. [27]

Related Research Articles

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References

  1. ↑ "LegalZoom 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 29, 2024.
  2. ↑ "Leadership: Management Team, Board of Directors, Legal Advisory Board". LegalZoom. Retrieved March 3, 2021.
  3. ↑ "LLRXBuzz". Archived from the original on 2012-02-21. Retrieved 2012-01-16.
  4. ↑ Bernstein, Fred (16 May 2002). "Being of Sound Mind, and a $55 Consultation". The New York Times. Retrieved July 3, 2017.
  5. ↑ "Incorporation: The Web Can Help". PC Magazine. Retrieved July 3, 2017.
  6. ↑ "Registered agent market share". Northwest Registered Agent, LLC. Retrieved July 3, 2017.
  7. ↑ Sonderegger, Dean (June 27, 2017). "Want To Know The Future Of Legal Tech? Ask Your Accountant". Above the Law. Retrieved June 9, 2022.
  8. ↑ Li, Victor (March 17, 2017). "Avvo, LegalZoom and Rocket Lawyer CEOs say their products help bridge access-to-justice gap". ABA Journal. American Bar Association. Retrieved May 19, 2017.
  9. ↑ Chang, Andrea. "Entrepreneur Brian Lee is business partner to the stars". Los Angeles Times . Archived from the original on April 2, 2013. Retrieved July 3, 2017.
  10. ↑ "Starting a Business in A Down Economy: The LegalZoom Story". legalzoom.com. December 1, 2009. Retrieved June 9, 2022.
  11. ↑ "Edward Hartman". LegalZoom. May 2, 2022. Retrieved June 9, 2022.
  12. ↑ "First online dating, then online wedding planning, now this". USA Today. January 22, 2004. Retrieved 2023-02-19.
  13. ↑ Ambrogi, Robert (August 2014). "Latest legal victory has LegalZoom poised for growth". ABA Journal.
  14. ↑ "Legal DIY websites are no match for a pro: They provide services for a fraction of what you'd pay a lawyer". Consumer Reports. September 2012. Retrieved May 30, 2017.
  15. ↑ Rogers, Joan (July 26, 2016). "N.C. Law Regulates LegalZoom, Other Legal Doc Providers". Bloomberg BNA. Retrieved June 14, 2017.
  16. ↑ Kroh, Eric (June 13, 2016). "DOJ, FTC Say Legal Documents Software Helps Consumers". Law360 ("A LexisNexis Company"). Retrieved May 24, 2017.
  17. ↑ "Joint advisory letter from the Federal Trade Commission and Department of Justice, re North Carolina HB 436" (PDF). June 10, 2016. Retrieved May 24, 2017. [C]onsider the benefits of interactive websites for consumers and competition...
  18. ↑ "List of Recipients and Nominees - Louis M. Brown Award for [Increasing] Legal Access" (PDF). American Bar Association Standing Committee on The Delivery of Legal Services. 2005. Archived from the original (PDF) on March 19, 2005. Nominee: LegalZoom.com
  19. ↑ "The 100 Most Valuable Startups In The World, Revamped And Revised!" Business Insider , October 7, 2011.
  20. ↑ David Lidsky, "Most Innovative Companies 2012," Fast Company , February 7, 2012.
  21. ↑ "LegalZoom to tie up with QualitySolicitors for British launch". The Lawyer. 20 September 2012. Retrieved 22 September 2012.
  22. ↑ "Permira to take controlling stake in LegalZoom.com". www.reuters.com. Reuters. Retrieved 23 June 2014.
  23. ↑ "Permira Completes $200M LegalZoom Buy". socalTECH. 14 February 2014.
  24. ↑ Hyde, John (December 7, 2015). "LegalZoom to make first UK acquisition". The Law Society Gazette. London. Retrieved June 2, 2017.
  25. ↑ Friel, Katie (2021-11-12). "California company zooms away with San Antonio tech firm in multimillion-dollar deal". MySA. Retrieved 2024-12-12.
  26. ↑ "LegalZoom Acquires Leading Virtual Mailbox Provider, Earth Class Mail". investors.legalzoom.com. Glendale, CA. 10 November 2021. Retrieved 17 December 2021.
  27. ↑ "LegalZoom Acquires Document Automation and Forms Template Company". globenewswire.com (Press release). 17 Oct 2022. Retrieved 27 Nov 2022.
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