LZ on Nasdaq

LegalZoom

Logo: LegalZoom2001, CC BY-SA 4.0, via Wikimedia Commons4

American legal technology company

LegalZoom.com, Inc. is an American online legal technology and services company launched in 2001. It provides online legal services using an independent network of attorneys and the LegalZoom-owned law firm, LegalZoom Legal Services, as well as self-service technology and care specialists. Services include wills and living trusts, business compliance such as licenses and permits, copyright registrations, and trademark applications.3 It was founded by Brian Lee and Robert Leslie Shapiro.1 Wikipedia text CC BY-SA 4.0

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Last updated Oct 21, 2026.

Overview

2001Founded1

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  • TickerLZ on Nasdaq1
  • IndustryServices-Computer Processing & Data Preparation1
  • HeadquartersLos Angeles1
  • Websitewww.legalzoom.com
  • Incorporated inDE5
  • Business address954 Villa Street, Mountain View, Ca 940415
  • Filer categoryLarge accelerated filer5
954 Villa Street
Photo: Coolcaesar, CC BY 4.0, via Wikimedia Commons8

LegalZoom.com, Inc. is an American online legal technology and services company launched in 2001. It provides online legal services using an independent network of attorneys and the LegalZoom-owned law firm, LegalZoom Legal Services, as well as self-service technology and care specialists. Services include wills and living trusts, business compliance such as licenses and permits, copyright registrations, and trademark applications. The company also offers attorney referrals and registered agent services.3

Financials

From the company’s reports to the SEC. Every number links to the filing it came from.

Key numbers, fiscal 2025

65.9%Gross margin9
3.3%Operating margin9
2.0%Net margin9
10.9%Revenue growth, 20259
9.0%Return on equity9
$147.9MFree cash flow9

Where the money goes

Where each dollar of revenue went, fiscal 2025

  • Cost of revenue34¢$258.0M
  • Other costs62¢$465.6M
  • Income tax2¢$17.0M
  • Profit2¢$15.4M

Out of $756.0M in revenue.9

Where each dollar of operating cash went, fiscal 2025

  • Capital spending17¢$30.3M
  • Share buybacks45¢$80.5M
  • Kept or used elsewhere38¢$67.4M

Out of $178.2M of cash from operations.9

Financial statements

Revenue101112139$756.0M in 2025+85% since 2019
0$200.0M$400.0M$600.0M$800.0M2019: $408.4M$408.4M20192020: $470.6M$470.6M2020+15%2021: $575.1M$575.1M2021+22%2022: $620.0M$620.0M2022+8%2023: $660.7M$660.7M2023+7%2024: $681.9M$681.9M2024+3%2025: $756.0M$756.0M2025+11%
Gross profit101112139$498.1M in 2025+83% since 2019
0$200.0M$400.0M$600.0M2019: $271.5M$271.5M20192020: $316.1M$316.1M2020+16%2021: $385.7M$385.7M2021+22%2022: $408.9M$408.9M2022+6%2023: $421.5M$421.5M2023+3%2024: $441.8M$441.8M2024+5%2025: $498.1M$498.1M2025+13%
Operating income101112139$25.0M in 2025−46% since 2019
-$100.0M-$50.0M0$50.0M2019: $46.3M$46.3M20192020: $48.9M$48.9M2020+6%2021: -$85.1M-$85.1M20212022: -$41.7M-$41.7M2022−51%2023: $21.1M$21.1M20232024: $35.6M$35.6M2024+69%2025: $25.0M$25.0M2025−30%
Net income101112139$15.4M in 2025+107% since 2019
-$150.0M-$100.0M-$50.0M0$50.0M2019: $7.4M$7.4M20192020: $9.9M$9.9M2020+33%2021: -$108.7M-$108.7M20212022: -$48.7M-$48.7M2022−55%2023: $14.0M$14.0M20232024: $30.0M$30.0M2024+115%2025: $15.4M$15.4M2025−49%

Every line of the income statement as filed: the last 3 fiscal years, latest first.9

Period ending2025-12-312024-12-312023-12-31
Revenue$756.0M$681.9M$660.7M
Cost of revenue$258.0M$240.1M$239.3M
Gross profit$498.1M$441.8M$421.5M
Sales and marketing$261.7M$207.7M$210.9M
Technology and development$81.9M$89.6M$83.2M
General and administrative$143.8M$108.9M$106.4M
Gain on sale of assets held for sale-$14.3M$0$0
Total operating expenses$473.1M$406.2M$400.4M
Income from operations$25.0M$35.6M$21.1M
Interest expense-$1.3M-$446.0K-$493.0K
Interest income$7.6M$7.8M$9.3M
Other income, net$1.2M$98.0K$1.6M
Income before income taxes$32.4M$43.1M$31.5M
Provision for income taxes$17.0M$13.1M$17.5M
Net income$15.4M$30.0M$14.0M
Net income basic:$15.4M$30.0M$14.0M
Net income diluted:$15.4M$30.0M$14.0M
Net income per share basic (in dollars per share)$0.09$0.17$0.07
Net income per share diluted (in dollars per share)$0.08$0.16$0.07
Weighted-average shares used to compute net income per share basic (in shares)178.8M shares180.2M shares190.5M shares
Weighted-average shares used to compute net income per share diluted (in shares)184.7M shares182.9M shares194.4M shares

Compare LegalZoom with another company

Corporate structure

LegalZoom sits at the top of its group. 4 entities, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.

Major holders of LegalZoom

  • LegalZoom Los Angeles
    • Earth Class Mail, Inc. Subsidiary · Delaware, United States
    • Formation Nation, LLC Subsidiary · Nevada, United States
    • Inc Authority, LLC Subsidiary · Nevada, United States

Built from subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.

What it owns

What LegalZoom reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.

Property and equipment

ItemLatestA year beforeChange
Finance-lease assets$09 Dec 31, 2025$2.0K9 Dec 31, 2024−100.0%
Operating-lease assets (leased space)$13.4M9 Dec 31, 2025$7.2M9 Dec 31, 2024+86.6%

Investments

ItemLatestA year beforeChange
Cash and cash equivalents$203.1M9 Dec 31, 2025$142.1M9 Dec 31, 2024+43.0%
Marketable securities, non-current$09 Dec 31, 2025$1.4M9 Dec 31, 2024−100.0%

Intangibles and goodwill

ItemLatestA year beforeChange
Goodwill$140.7M9 Dec 31, 2025$63.3M9 Dec 31, 2024+122.2%
Intangible assets, net (excluding goodwill)$18.2M9 Dec 31, 2025$8.7M9 Dec 31, 2024+109.8%
Finite-lived intangibles, gross$26.7M13 Dec 31, 2024$26.9M13 Dec 31, 2023−0.7%
Accumulated amortization$25.8M9 Dec 31, 2025$18.0M9 Dec 31, 2024+43.3%
Finite-lived intangibles, net$8.7M13 Dec 31, 2024$13.7M13 Dec 31, 2023−37.0%

Properties, in its own words

Our corporate headquarters are located in Mountain View, California, under a lease expiring in 2029. In March 2025, we completed the sale of our operational headquarters in Austin, Texas, which is discussed in more detail in Note 4 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. We also lease office spaces in other locations throughout the U.S. and internationally. We believe that these facilities are sufficient for our current needs and that additional facilities will be available to accommodate the expansion of our business should they be needed.

Item 2 of the 10-K filed Feb 23, 2026.16

The story

Founded by Brian Lee and Robert Leslie Shapiro in 2001.1

Leadership

Who has led LegalZoom, and when. Pick a name to see everywhere that person has worked.

Chief financial officer

  1. Noel Bertram Watson2021–now
20052010201520202025
Board members and other officers (15)

Subsidiaries and ownership

Subsidiaries (Exhibit 21)

  • Earth Class Mail, Inc. Delaware6
  • Formation Nation, LLC Nevada6
  • Inc Authority, LLC Nevada6

The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.

Acquisitions

LegalZoom formed a partnership in 2012 with the United Kingdom-based legal services provider QualitySolicitors to jointly offer online legal services in the United Kingdom. In 2014, European private capital firm Permira announced its intent to acquire $200 million in the outstanding equity of LegalZoom and become its largest shareholder; on February 14, 2014, Permira announced that the deal was complete. LegalZoom announced in 2015 they would Beaumont Legal, a 200-year-old firm in Wakefield, West Yorkshire, England which describes itself as one of the largest conveyancers in the country.

LegalZoom announced its initial public offering in 2021 and became the first publicly traded company to own and operate a law firm in the United States. Later that year, the company expanded its network of attorneys following the Arizona Supreme Court approval of an alternative business structure license.

In 2021, LegalZoom acquired Earth Class Mail, a virtual mailbox service for businesses, for $63 million. In 2022, the company acquired Revv, a Global SaaS document automation and form template company based in Bangalore, India. In 2023, they announced a partnership with Novo, a financial technology firm focused on digital banking for small businesses.

In May 2024, LegalZoom entered a partnership with Wix.com, a website builder and web development platform, offering an all-in-one launch solution for entrepreneurs. That same year, BusinessLoans.com partnered with LegalZoom to provide LegalZoom users with a pathway to compare and apply for small business loans.

Read the full text

LegalZoom acquired Formation Nation, a small business services company focused on business formation and compliance that operates the Nevada Corporate Headquarters (NCH) and Inc Authority brands, in 2025, and partnered with Perplexity AI, an artificial intelligence company, to enhance its legal technology offerings.

From Wikipedia’s article on LegalZoom, shared under CC BY-SA 4.0.7

Former names

  • LEGALZOOM COM INCApr 2, 2004 to Jun 4, 20215

Timeline

  1. Aug 5, 20268-K Results of operations; Regulation FD disclosure33
  2. Jun 4, 20268-K Shareholder vote34
  3. May 6, 20268-K Results of operations; Regulation FD disclosure35
  4. Feb 19, 20268-K Results of operations; Regulation FD disclosure; Other events36
  5. Nov 5, 20258-K Results of operations; Regulation FD disclosure37
  6. Aug 7, 20258-K Results of operations; Regulation FD disclosure38
  7. Jul 17, 20258-K Entered a material agreement; New debt or obligation39
  8. Jun 5, 20258-K Shareholder vote40
  9. May 7, 20258-K Results of operations; Regulation FD disclosure; Other events41
  10. Apr 1, 20258-K Completed an acquisition or sale42
  11. Feb 26, 20258-K Results of operations; Regulation FD disclosure43
  12. Feb 10, 20258-K Entered a material agreement; Results of operations; Unregistered sale of shares44
  13. Jul 1, 2021Went public Listed on NASDAQ1
  14. Jun 29, 2021New chief executive Daniel A. Wernikoff becomes CEO17
  15. 2001Founded Founded1

Calendar

Coming up

  1. Nov 4, 2026Reports results for the quarter ending Sep/2026 A year earlier it reported $0.03 a share, on Nov 5, 2025.45

When it reported results

  1. Aug 5, 2026Reported quarterly or annual results33
  2. May 6, 2026Reported quarterly or annual results35
  3. Feb 19, 2026Reported quarterly or annual results36
  4. Nov 5, 2025Reported quarterly or annual results37
  5. Aug 7, 2025Reported quarterly or annual results38
  6. May 7, 2025Reported quarterly or annual results41
  7. Feb 26, 2025Reported quarterly or annual results43
  8. Feb 10, 2025Reported quarterly or annual results44

Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar

Filings

310 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 42 major events, 170 insider forms, 20 large holders, 58 other. The latest 20:

  1. Aug 21, 2026144 EDGAR
  2. Aug 21, 20264 EDGAR
  3. Aug 20, 2026144 EDGAR
  4. Aug 18, 2026144 EDGAR
  5. Aug 18, 20264 EDGAR
  6. Aug 18, 20264 EDGAR
  7. Aug 18, 20264 EDGAR
  8. Aug 18, 20264 EDGAR
  9. Aug 17, 2026144 EDGAR
  10. Aug 5, 202610-Q EDGAR
  11. Aug 5, 20268-K EDGAR
  12. Jul 13, 20264 EDGAR
  13. Jul 13, 20264 EDGAR
  14. Jun 4, 20268-K EDGAR
  15. Jun 3, 20264 EDGAR
  16. Jun 3, 20264 EDGAR
  17. Jun 3, 20264 EDGAR
  18. Jun 3, 20264 EDGAR
  19. May 19, 2026144 EDGAR
  20. May 19, 20264 EDGAR

The 310 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

69 open-market trades by officers, directors and large owners since October 2021: 1 buys and 68 sales. Grants, option exercises and gifts are left out.

DateWhoTradeSharesPriceValueFiling
Aug 21, 2026Watson Noel BertramChief Operating Officer & CFOSale83,629$5.83$487.6KForm 4
Aug 20, 2026Watson Noel BertramChief Operating Officer & CFOSale416,371$5.91$2.5MForm 4
Aug 18, 2026Miller NicoleCHIEF LEGAL OFFICERSale33,479$5.51$184.5KForm 4
Aug 17, 2026Miller NicoleCHIEF LEGAL OFFICERSale43,996$5.51$242.4KForm 4
May 19, 2026Miller NicoleCHIEF LEGAL OFFICERSale19,199$6.58$126.3KForm 4
May 18, 2026Watson Noel BertramChief Operating Officer & CFOSale15,000$6.45$96.8KForm 4
May 11, 2026Stibel Jeffrey MChief Executive OfficerBuy125,000$6.15$768.8KForm 4
Feb 26, 2026Miller NicoleCHIEF LEGAL OFFICERSale23,325$6.63$154.6KForm 4
Feb 18, 2026Watson Noel BertramChief Operating Officer & CFOSale15,000$6.96$104.4KForm 4
Nov 18, 2025Miller NicoleCHIEF LEGAL OFFICERSale23,506$9.63$226.4KForm 4
Nov 18, 2025Watson Noel BertramChief Operating Officer & CFOSale15,000$9.56$143.4KForm 4
Aug 25, 2025Watson Noel BertramChief Operating Officer & CFOSale27,319$11.07$302.4KForm 4
Aug 22, 2025Watson Noel BertramChief Operating Officer & CFOSale18,136$11.03$200.0KForm 4
Aug 19, 2025Miller NicoleCHIEF LEGAL OFFICERSale25,154$10.82$272.2KForm 4
Aug 18, 2025Watson Noel BertramChief Operating Officer & CFOSale15,000$10.81$162.2KForm 4
Aug 12, 2025Murphy John FrancisDirectorSale24,250$10.57$256.3KForm 4
May 17, 2024Miller NicoleCHIEF LEGAL OFFICERSale13,727$9.17$125.9KForm 4
May 16, 2024Watson Noel BertramChief Operating Officer & CFOSale25,000$9.44$236.0KForm 4
Mar 15, 2024Preece RichardChief Operating OfficerSale9,462$13.17$124.6KForm 4
Mar 1, 2024Murphy John FrancisDirectorSale10,000$12.47$124.7KForm 4

All 69 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Executive pay

What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.

YearExecutiveAgeSalaryTotal pay
2025Jeffrey Stibel52$575.0K$1.3M55
2025Noel Watson51$500.0K$1.0M55
2025Nicole Miller42$450.0K$887.7K55
2024Chief Executive Officer &$252.1K$61.2M55
2024Chief Operating Officer &$494.2K$21.4M55
2024Chief Legal Officer$443.3K$14.8M55
2023Chief Financial Officer$465.4K$7.1M55
2023and Secretary$411.5K$4.1M55

Held by these funds

The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.

FundSharesValueShare of the fundChange
Francisco Partners Management, LP28,625,744$175.5M48.6%No change
BlackRock, Inc.18,001,039$110.3M0.0%+66,635
Technology Crossover Management IX, Ltd.16,396,313$100.5M14.6%No change
Vanguard Portfolio Management LLC10,815,236$66.3M0.0%−486,618
Vanguard Capital Management LLC6,469,283$39.7M0.0%−472,703
State Street Corp4,552,468$27.9M0.0%+132,761
Renaissance Technologies LLC3,945,493$24.2M0.0%−68,200
Arrowstreet Capital, Limited Partnership3,035,774$18.6M0.0%−498,137
Geode Capital Management, LLC3,034,948$18.6M0.0%+137,367
Dimensional Fund Advisors LP2,984,516$18.3M0.0%−128,379
Punch & Associates Investment Management, Inc.2,850,501$17.5M0.9%+161,231
Invenomic Capital Management LP2,676,821$16.4M1.0%−247,780
Franklin Resources Inc2,627,665$16.1M0.0%+117,354
Morgan Stanley2,437,381$14.9M0.0%+278,514
Aqr Capital Management LLC2,347,120$14.4M0.0%+799,046
Goldman Sachs Group Inc2,333,424$14.3M0.0%−489,392
Jpmorgan Chase & Co2,036,003$12.5M0.0%−32,906
Ameriprise Financial Inc2,030,128$12.4M0.0%+1,585,750
UBS Group AG1,784,142$10.9M0.0%+363,942
CDC Financial, Inc.1,601,436$9.8M7.5%+1,209,371
Boston Partners1,582,125$9.7M0.0%−2,321,450
Ararat Capital Management LP1,569,055$9.6M4.5%−625,216
Northern Trust Corp1,306,970$8.0M0.0%+112,523
Tabor Asset Management, LP1,199,418$7.4M2.3%+309,936
Charles Schwab Investment Management Inc1,178,686$7.2M0.0%+165,616

13F reports cover disclosed long positions in U.S. stocks only.

Members of Congress who traded it

3 trades disclosed by members of Congress. “Vs S&P since” is the stock’s change since the trade minus the S&P 500’s.

DateMemberTradeAmountVs S&P sinceFiling
Nov 11, 2021Alan S. Lowenthal, HouseSale$1,001 - $15,000+135.3%Report
Aug 16, 2021Alan S. Lowenthal, HouseBuy$1,001 - $15,000−154.5%Report
Aug 13, 2021Alan S. Lowenthal, HouseBuy$1,001 - $15,000−155.3%Report

Members report amounts as ranges, not exact figures. Returns are price-only (no dividends).

SEC filer profile

How LegalZoom is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARLEGALZOOM.COM, INC.2
  • CIK0001286139
  • Employer ID (EIN)95-475285616
  • Filer statusLarge accelerated filer not an emerging growth company; not a smaller reporting company; not a shell company16
  • Incorporated inDelaware16
  • Fiscal year endsDecember 312
  • Industry code (SIC)7374 Services-Computer Processing & Data Preparation2
  • SEC reviewing officeOffice of Technology, Division of Corporation Finance2
  • Business address954 Villa Street, Mountain View, CA 940412
  • Phone323-962-86002
  • Shares outstanding171,264,812 as of Jul 31, 202615
  • Public float$1.3B as of Jun 30, 202516
  • AuditorPricewaterhouseCoopers LLP, Los Angeles, California PCAOB ID 238; it also attests to the company’s internal control over financial reporting16
  • On EDGAR sinceApr 2, 20042
  • Filings369 in all: 4 (176), 8-K (44), 144 (29), 3 (20), 10-Q (16), SC 13G (10), S-1/A (7), CORRESP (6)2
    All 32 form types

    S-8 (6), 10-K (5), DEF 14A (5), DEFA14A (5), SC 13G/A (5), UPLOAD (5), ARS (4), 424B7 (3), SCHEDULE 13G/A (3), 8-A12B (2), CERT (2), REGDEX (2), S-1 (2), SCHEDULE 13G (2), 424B4 (1), 8-K/A (1), CERTNYS (1), DRS (1), DRS/A (1), DRSLTR (1), EFFECT (1), FWP (1), RW (1), S-3ASR (1)

  • Latest filingsAnnual report (10-K) Feb 23, 2026
    Quarterly report (10-Q) Aug 5, 2026
    Proxy statement (DEF 14A) Apr 22, 2026
    Latest 8-K (8-K) Aug 5, 2026

Securities registered for trading

ClassSymbolExchange
Common Stock, par value $0.001 per shareLZNasdaq

From the cover page of the 10-K filed Feb 23, 2026 (Section 12(b) of the Exchange Act).16

Risk factors and legal proceedings

The risks LegalZoom names in Item 1A of its 10-K filed Feb 23, 2026: 40 risks under these headings, as written.16

  • Risks Relating to Our Business and Industry
  • Our business primarily depends on business formations
  • Our business depends substantially on our customers expanding their use of our platform, including our transactional customers converting into subscribers and our subscribers renewing their subscriptions with us
  • Failure to effectively manage our growth could adversely impact our business
  • Our future quarterly results of operations may fluctuate significantly due to a wide range of factors, which makes our future results difficult to predict
  • We have a history of net losses and we may not be able to maintain profitability
  • If we fail to provide high-quality products and services that meet our customers’ expectations, we may not be able to attract and retain customers
  • If we do not continue to innovate and provide a platform that is useful to our customers, we may not remain competitive, and our results of operations could suffer
  • The legal solutions market is highly competitive and our failure to effectively compete successfully could materially and adversely affect our business, results of operations, financial condition and future prospects
  • Our business depends on our brand and reputation, which could be adversely affected by numerous factors
  • We are incorporating AI into some of our offerings, which may present both compliance risks and reputational risks
  • If our marketing efforts are unsuccessful, our business, results of operations, financial condition and future prospects may be adversely affected
The other 29 risks
  • We depend on top talent, including our senior management team, to grow and operate our business, and if we are unable to hire, retain or motivate our employees, we may not be able to grow or operate effectively, which may adversely affect our business and future prospects
  • Our business and success depend in part on our strategic relationships with third parties, including our partner ecosystem, and our business may be harmed if we fail to maintain or expand these relationships
  • Our reliance on third-party providers could adversely affect our business
  • The acquisition of Formation Nation and any future acquisitions or investments may divert our management’s attention, result in additional dilution to our stockholders or adversely affect our operating results
  • Our focus on the long-term best interests of our company and our consideration of our stakeholders, more broadly, including our stockholders, customers, employees, and other stakeholders that we may identify from time to time, may conflict with short- or medium-term financial interests and business performance, which may negatively impact the value of our common stock
  • We may not effectively ensure that online services and physical locations are protected from significant outages, denial or degradation of service attacks, natural disasters, including adverse weather conditions, and other disruptions, any of which could adversely affect our brand and reputation, business, results of operations, financial condition and future prospects
  • We may from time to time become involved in litigation, arbitration or government investigation matters that are expensive and time consuming and, if resolved adversely, could harm our brand and reputation, business, results of operations, financial condition or future prospects
  • We are subject to risks related to accepting credit and debit card payments that may harm our business or expose us to additional costs and liabilities
  • Risks Relating to Our Financial Condition, Indebtedness and Capital Requirements
  • Our results of operations may not immediately reflect downturns or upturns in sales because we recognize revenue from our customers over the term of their paid subscriptions with us
  • We track certain financial and operating metrics with internal systems and tools and do not independently verify such metrics. Certain of our financial and operating metrics are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business
  • We have in the past identified material weaknesses in our internal control over financial reporting, and if we are unable to maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may decline
  • The agreement governing our revolving credit facility requires us to meet certain operating and financial covenants and places restrictions on our operating and financial flexibility. If we raise additional capital through debt financing, the terms of any new debt could further restrict our ability to operate our business
  • We are subject to fluctuations in interest rates
  • Our ability to use our NOL carryforwards may be limited
  • Changes in our effective tax rate or tax liability may have an adverse effect on our results of operations
  • Changes in tax laws or regulations that are applied adversely to us or our customers may have a material adverse effect on our business, cash flow, financial condition or results of operations
  • Risks Relating to Legal, Compliance and Regulatory Matters
  • Our business and services subject us to complex and evolving U.S. and foreign laws and regulations
  • Our Arizona subsidiary, which is licensed as an ABS, may not insulate us from claims of the unauthorized practice of law and is subject to restrictions under Arizona Code of Judicial Administration
  • If the independent professionals who participate in our or our partners' networks, or otherwise work with LegalZoom as a consultant or contractor, are characterized as employees, we would be subject to employment and withholding liabilities and regulatory risks
  • Compliance with U.S. and foreign privacy and data security requirements could result in additional costs and liabilities to us or inhibit our ability to collect and store data, and the failure to comply with such requirements could subject us to significant fines and penalties, which could adversely affect our business, financial condition and reputation
  • Breaches and other types of security incidents of our data, networks or systems, or those of the third parties with whom we work, could negatively impact our ability to conduct our business, our brand and reputation, our ability to retain existing customers and attract new customers, and may cause us to incur significant liabilities and adversely affect our business, results of operations, financial condition and future prospects
  • Risks Relating to Intellectual Property
  • Our use of open source software could negatively affect our proprietary technologies and our ability to offer and sell subscriptions to our products and could subject us to possible litigation
  • If we are unable to adequately protect our intellectual property to prevent unauthorized use or appropriation, the value of our brand and other intangible assets, as well as our business, results of operations, financial condition and future prospects may be adversely affected
  • Risks Relating to Ownership of Our Common Stock
  • The market price of our common stock may be volatile or may decline regardless of our operating performance, resulting in substantial losses for our investors
  • A significant portion of our total outstanding shares may be sold into the market in the near future, which could cause the market price of our common stock to drop significantly, even if our business is performing well
  • Concentration of ownership of our common stock among our existing executive officers, directors and other affiliates may prevent new investors from influencing significant corporate decisions
  • Provisions in our corporate charter documents and provisions under Delaware law could make an acquisition of us, which may be beneficial to our stockholders, more difficult and may prevent attempts by our stockholders to replace or remove our current management
  • Our amended and restated certificate of incorporation provides that the doctrine of “corporate opportunity” will not apply with respect to certain stockholders
  • Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware and the federal district courts of the United States of America will be the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees

Legal proceedings

We are not currently a party to any material legal proceedings. However, from time to time we become subject to legal proceedings, claims and litigation arising in the ordinary course of business, and we anticipate that legal proceedings, claims and litigation could be brought against us in the future.

The opening of Item 3, Legal Proceedings.16

Sources

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