LegalZoom is an online provider of legal services that provides both businesses and private citizens with a wide range of legal papers and services. Since it does not bring together consumers and sellers of goods or services, it is not a marketplace in the conventional sense. Instead, LegalZoom serves as a platform via which users can obtain legal documents and services that its team of attorneys has produced.
Limited liability company (LLC) formation, business incorporation, will and trust drafting, and trademark registration are all services provided by LegalZoom. The company’s legal plan subscription service allows customers to get legal counsel from attorneys.
Despite not being a marketplace, LegalZoom does provide a platform for outside service providers to sell to LegalZoom users. For instance, LegalZoom collaborates with businesses that provide company insurance, website design, and other services that its clients could find useful. However, before promoting their services on the platform, LegalZoom picks these partners carefully and makes sure they comply with specific requirements.
When LegalZoom went public in June 2021, its stock price at first increased. The stock price did, however, decline afterwards, which is typical for freshly public corporations. The slower-than-expected growth rate in LegalZoom’s Q2 2021 earnings report also may have contributed to the stock price decline. But it’s crucial to remember that stock values can be unpredictable and change for a variety of reasons.
Which is better, an LLC or a sole proprietorship? The individual requirements and objectives of the business owner must be taken into consideration while deciding between an LLC and a sole proprietorship. Since a sole proprietorship does not need to be officially registered or pay filing fees, it is a simpler and more affordable alternative for a company with just one owner. It also implies that the owner is personally liable indefinitely for all debts and legal liabilities incurred by the company.
The owners of an LLC, on the other hand, are provided with limited liability protection, which means that, in the event of legal troubles or debt, their personal assets are not at danger. Additionally, it provides more latitude for ownership and organizational structure. It does, however, necessitate formal registration and filing charges.
An organizer is a person or thing that contributes to the formation of an LLC. An attorney, a member of the LLC, or a third-party service provider like LegalZoom could be the organizer. The duties of the organizer may include submitting the required papers to the state, acquiring the required licenses and permits, and drafting the LLC’s operating agreement.
Yes, one of the LLC’s owners may serve as the entity’s registered agent. To receive legal documents and other critical correspondence on behalf of the LLC, the registered agent must, however, have a physical address in the state where the LLC is registered and must be accessible during regular business hours. The owner may need to appoint a third-party registered agent to serve in this capacity if they are unable to achieve these requirements.