The Malta Independent 24 January 2022, Monday

Legal Zoom: An Example Of Companies Helping The US Economy To Thrive

Thursday, 2 December 2021, 08:00 Last update: about 3 months ago

Brought to you by LLC University

Following a 6.7 percent gain in the second quarter, real gross domestic product (GDP) increased at a rate of 2.1 percent in the third quarter of 2021.

From the "advance" estimate given in October, the rise was revised up 0.1 percentage point. The U.S economy continues to grow and many entrepreneurs across the world are contributing to this growth. 


Starting A Business

Apart from exciting companies that are continuing to thrive, many new entrepreneurs are embarking on the venture of starting a new business venture.

LLC formation has been seen as one of the most preferred business models in recent years. Personal liability, ownership, and management, cost of organizing and registering the business, and taxation are all factors to consider when deciding on the form of your business.

The following are some of the reasons why you would wish to form an LLC:

·      Personal accountability for commercial debts is limited. Only the assets possessed in the LLC's name are susceptible to business creditors' claims, including lawsuits brought against the company. The LLC members' personal assets cannot be used to pay off business debts. This is the most essential reason for most people to form an LLC.

·      Obtaining funding from investors. This can be accomplished by enlisting the help of other members who can give money, property, or services to the company.

·      There are tax advantages. Unlike a corporation, there is normally no additional tax levied on the LLC itself. Profits and losses are generally distributed among LLC members, just as they would be in a partnership.

Many international entrepreneurs tend to ask the question: Is LegalZoom worth it for  LLC formation? Below we will discuss why LegalZoom is a popular option for both US and international entrepreneurs.

The online legal platform was valued at over $7.5 billion in June 2021, after shares rose by 38 percent. LegalZoom's market capitalization was $7.35 billion as the stock rose 35.18 percent to $37.85 per share.

LegalZoom is one of the simplest and most effective solutions for anyone wishing to form an LLC.

They're an online legal service provider that aims to be a one-stop shop for small businesses' legal needs.

According to the LegalZoom website, forming an LLC is as easy as this: 

·      Answering a few simple questions, which should take no more than a few minutes.

·      Payment of the state filing fees as well as LegalZoom's fees.

·      Waiting for the LegalZoom team to gather and file all relevant documents.

·      Getting a comprehensive LLC package mailed to you or uploaded to your account.

From LLC creation to trademark registration, LegalZoom offers a wide range of services for small business owners.

You can select from one-time services like forming a firm, free services like generating specific legal documents, or the subscription-based Business Advisory plan, which provides ongoing legal aid.

LegalZoom is one of the most well-known and well-established online legal services, with over four million businesses and consumers served.

They have the industry's longest money-back satisfaction guarantee at 60 days. You can also get a prorated refund if you terminate your membership at any time.

LegalZoom is the least expensive for a business legal package that includes regular contact with an attorney.

The business legal plan includes phone consultations with an attorney and document evaluation, just like rivals.

Tax advice and an annual business review (checks to ensure you're in conformity with relevant regulations) are included in LegalZoom's legal plan, whereas competitors do not.

It also includes one monthly copyright registration, which is a fantastic offer for painters, musicians, and other creative freelancers and businesses.


More Than Business Formation

LegalZoom's library of legal forms is one of their most popular additional offerings. LegalZoom asks you questions to auto-complete the form when you select a document.

You can then choose to pay for a single document or a monthly subscription that allows you to generate and download several papers as needed.

LegalZoom does not sell blank forms or templates. You fill out the questionnaire, pay the costs, and they generate a paper with all of your information already filled in.

The documents are always in PDF format, never in Word or another editable format. This means you'll have to fill out the questionnaire and pay the cost again if you require the document later with changed information.

You can't simply make modifications to an existing document.


More About The Company

Brian P. Y. Liu, Brian S. Lee, Edward R. Hartman, and Robert Shapiro founded LegalZoom.

Because Lee, Hartman, and Liu were not well-known, they explored a variety of well-known people who could provide credibility to their intended venture, eventually settling on Los Angeles litigator Robert Shapiro. After some conversation, Lee was able to reach Shapiro, who agreed to assist the company in getting off the ground.

On March 12, 2001, the firm began providing legal services to the general public.

Over the years, LegalZoom has been honored for its entrepreneurial prowess on several occasions. LegalZoom was named 27th on Business Insider's list of the world's most valuable businesses in 2011, and 26th on Fast Company's list of the most inventive firms in 2012.

LegalZoom and QualitySolicitors, a legal services provider located in the United Kingdom, forged a cooperation in September 2012 to offer online legal services in the United Kingdom, including company formations and divorce filings.

On January 6, 2014, Permira, a European private equity group, announced its intention to buy $200 million in LegalZoom's outstanding equity and become the company's largest stakeholder, pending regulatory approval.

Permira announced the completion of the transaction on February 14, 2014. LegalZoom stated in 2015 that they would be making their first acquisition in the United Kingdom. Beaumont Legal, a 200-year-old conveyancing firm in Wakefield, West Yorkshire, England, describes itself as one of the country's largest conveyancers.

Recent data has revealed that the annual revenue for LegalZoom is $200.0 million.

For Business Filing and Licensing Providers, LegalZoom isn't the only option. Look at different possibilities and competing options.

Reliability and convenience of use are two more crucial elements to consider while looking for alternatives to LegalZoom.

Rocket Lawyer, Healy Consultants, Corporate Creations, and are some of the alternatives and competitors to LegalZoom.


Final Thought

LegalZoom's business creation services come with a satisfaction guarantee.

If you pay for the LegalZoom LLC formation service and are dissatisfied with the outcomes – perhaps due to a clerical error or documents being filed later than you expected – you can ask for a refund. Using LegalZoom can help aspiring business owners save time and money by reducing the amount of paperwork they have to complete.

LegalZoom has a great 20-year track record of client satisfaction.

The website is easy to navigate, and customer service feedback is generally positive.

Last but not least, while forming a new LLC, local and international entrepreneurs should keep in mind that the details of forming an LLC differ from state to state.

In general, you'd draft an LLC operating agreement outlining the members' and managers' rights and responsibilities (similar to articles of incorporation), file the necessary paperwork with the relevant state government (usually the Secretary of State), and pay a filing fee.



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