LegalZoom Attorney Network
LegalZoom is not a law firm. The employees of LegalZoom do not perform legal services directly. Instead, LegalZoom promises to help consumers grow their businesses, care for their families, and protect their ideas in two distinct ways.
First, it provides access to self-help legal forms and templates for several practice areas. The most popular forms are for a simple will, business formation documents, or family law matters. Additional forms are continuously being added.
Second, LegalZoom connects consumers with an independent attorney if they need more help. The LegalZoom Attorney Network provides plans for attorneys across the United States to provide consumers with sound legal advice, representation, and other legal services. Launched in 2010, the popularity of LegalZoom plans continues to grow each year. The Local Attorney Directory (LAD) allows attorneys to connect with potential clients by getting referrals when customers need local help.
From the consumer's perspective, LegalZoom might provide a more affordable way to solve a legal problem with a flat fee. For example, a last will and testament on LegalZoom start at just $89.
From the attorney's perspective, joining the LegalZoom Attorney Network might create an opportunity to grow their practice by connecting with qualified new customers.
Read more about the LegalZoom Attorney Network and the jobs it provides for lawyers across the United States,
Types of LegalZoom Plans for Consumers
LegalZoom offers the following two types of legal plans for its customers:
The Business Advantage Pro is for small businesses. Small business owners or those looking to start a business can use this service to ask business legal questions, get contracts reviewed, and request custom-drafted documents at simple flat fees.
The Legal Advantage Plus is for individuals. Individuals can use this service to ask personal legal questions, get advice for specific situations, or have estate planning documents reviewed by an attorney.
Legal Zoom's plans are serviced by independent attorneys licensed in their respective states. Once an attorney joins the plan, customers can request consultations and connect with an attorney licensed to practice in their state.
Customer service questions can be handled by submitting an email request on their website. Legal Zoom also offers U.S.-based customer phone support from Monday through Friday from 5 a.m. to 7 p.m. PT or Saturday from 7 a.m. to 4 p.m. PT.
To cancel the service, you must sign into your account, go to the "My Account" page, find the tab for your business or personal plan, and then go to "Manage My Account," where you will see the option to cancel the plan.
LegalZoom's Directory of Local Attorneys
The LegalZoom Local Attorney Directory is an internal tool for attorneys who plan to refer people to attorneys in their state. The attorney directory on LegalZoom provides jobs for attorneys by making referrals easy.
The directory comprises qualified attorneys ready to serve clients with specific legal needs outside the plans' scope. Read more about the LegalZoom Local Attorney Directory.
The directory includes attorneys focused on the following practice areas:
- Estate Planning
- Power of Attorney
- Living Trust
- Last Will and Testament
- Healthcare Directive
- Family & Personal
- Real Estate
- Personal Injury
- Marriage and Divorce
- Landlord / Tenant
- Employment and Termination
- Child Custody / Support
- Bankruptcy
- Business
- Real Estate
- Landlord / Tenant
- Franchise Disclosure
- Employment and Termination
- Corporate Ownership
- Collections and Debt Issues
- Business Management
- Business Litigation
- Business Licenses
- Business Formation
- Intellectual Property
- Trademark
- Patent
- Copyright
Eligibility Requirements to Join LegalZoom's Attorney Network
Although joining the directory is free, LegalZoom requires that its customers referred through the directory receive a 25% discount off the attorney's regular reasonable rate (excluding matters taken on a contingency basis or set by statute). When you apply, the attorney must enter the following information:
- Full legal name
- Email address
- Phone number
- State in which you practice law
- Areas of expertise
The eligibility requirements require that you have 5+ years of experience practicing law, are active and in good standing, and have no public record of discipline with your state's regulatory agency. You must also maintain errors and omissions insurance with a $100,000 minimum per occurrence and a total of $300,000.
Although LegalZoom provides access to independent attorneys and self-help services, it is not a law firm or a substitute for an attorney or law firm. Legal Zoom does not offer any legal advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options, selection of forms, or strategies.
Top Competitors of LegalZoom
LegalZoom's top competitors also provide document preparation services. Legal Zoom also offers prepaid legal plans that offer unlimited 30-minute consultations on new legal matters for one low monthly fee.
Other companies that provide similar or alternative services to LegalZoom include:
- Rocket Lawyer - Rocket Lawyer offers many of the same services as LegalZoom, including business formation forms.
- Nolo - Provides thousands of do-it-yourself products, including legal forms, online documents, books and ebooks, and software.
- Avvo—Avvo focuses more on its online attorney directory, which provides ratings, reviews, and disciplinary records for lawyers in every state. The website also provides articles, advice from lawyers, and questions and answers by topic.
- IncFile—IncFile provides business formation services to create an LLC or other business entity for as little as $0 + state fees.
- Lawdingo - Lawdingo fulfills the legal services needs of law firms and companies by using a network of on-demand virtual paralegals and contract attorneys.
- LegalShield—LegalShield provides low-cost legal expense plans. Members pay one low monthly fee and receive access to experienced legal professionals in their area or online.
Many native-AI companies now offer contract drafting and review services to attorneys or directly to the public.
How much does LegalZoom cost for business formation services?
LegalZoom uses a tiered pricing structure. The basic plan starts at $79, the standard plan is $329 plus state fees, and the express gold plan is $349 plus state fees.
LegalZoom and other professional business formation services might save a business owner time and money, but they do not offer the same protections as a qualified business attorney.
The typical price to hire a qualified attorney to help you form your business is at least $1,200, depending on the services needed.
Prices on LegalZoom for Legal Services
The prices for legal services on LegalZoom are listed as follows:
- Prenuptial Agreement - $1,499
- Consulting Agreement - $899
- Independent Contractor Agreement - $899
- Commercial Lease - $1,099
- Contract Review - $399
- Employment Agreement - $1,399
- Employee Handbook - $1,199
- Postnuptial Agreement - $1,299
- Uncontested Divorce - $1,999
- Employee Termination Letter - $899
- SAFE Agreement - $899
- Demand Letter - $299
- Estate Planning Advice - $249
- Personal Injury Advice - $249
A consultation with an experienced attorney to answer questions and personalize the agreement. At least one round of revisions to finalize the agreement. Online document storage. Access to a library of related other legal forms.
LegalZoom's Valuation and Business Plan
On September 24, 2019, LegalZoom announced that Daniel Wernikoff became the new CEO, replacing John Suh, who served as CEO for 12 years. The company grew twenty-fivefold under John Suh's leadership from 2004 to 2019. After the transition, John Suh worked as a Senior Advisor to the company.
With more than 1,200 employees in the US and UK, LegalZoom helps small business owners and families make more informed legal decisions. The directory provides jobs for attorneys across various practice areas, but the LegalZoom Attorney Network is not a comprehensive lawyer directory covering all states and practice areas.
At one time, LegalZoom had a multi-billion-dollar valuation. Investors include TCV, TA, GPI, Kleiner Perkins, IVP, Francisco Partners, Bryant Stibel, and Permira Advisors.
LegalZoom made its market debut on Wednesday, June 30, 2021, with shares opening at $36.75 per share after an initial public offering price of $28 eachin the company’s second attempt at going public. By July 2024, the LegalZoom stock price dropped to an all-time low of $5.60 the day after the company said Chief Executive Dan Wernikoff was leaving the company and it was cuttingits revenue outlook for the yearChairman Jeffrey Stibel has been named as the new CEO of the company.
Criticism of Legal Zoom
Critics claim LegalZoom engages in the unauthorized practice of law because its owners include nonlawyers, and it does not fit the statutory definition of a professional service corporation. Others criticize the company for exploiting the public’s aversion to attorneys while glossing over its limitations.
Many of those limitations can be understood by looking at the disclaimer in the "terms of use," which provides:
“The LegalZoom™ Services also include a review of your answers for completeness, spelling, and for internal consistency of names, addresses and the like. At no time do we review your answers for legal sufficiency, draw legal conclusions, provide legal advice, opinions or recommendations about your legal rights, remedies, defenses, options, selection of forms, or strategies, or apply the law to the facts of your particular situation. LegalZoom™ is not a law firm and may not perform services performed by an attorney.”
Customer complaints for LegalZoom can be found on RipoffReport.com. Negative reviews for Legal Zoom dominate online review platforms, including Better Business Bureau®. Many complaints against LegalZoom focus on its high prices, attempts at upselling, a lack of guidance, problems with the templates, deceptive business practices, unexpected credit card charges that are difficult to cancel, and the inability to delete debit card information from their system.
Additional Resources
My Account on LegalZoom - Visit LegalZoom to find the fastest way to log in to your account or find the phone number for a customer service representative. LegalZoom's business model is built around avoiding complicated forms. Instead, the platform takes care of all the paperwork after promoting the consumer or business owner to answer simple questions.
Legal Zoom on Wikipedia - Visit the Wikipedia website to learn more about LegalZoom. Find information on the history of the company, its reception, references, and external links. The article on Wikipedia also explains litigation with the North Carolina State Bar Association concerning prohibitions settled against the unauthorized practice of law. Find out why companies like LegalZoom might provide more cost-effective services for some consumers and increase access to legal services.
Legal Zoom on Facebook - Follow LegalZoom on Facebook to find posts, photos, and videos. You can use Facebook Messenger to get in touch with LegalZoom or send them any questions you might have.
This article was last updated on Tuesday, August 20, 2024.
