Item: LegalZoom Terms of Service
Rating: 42
Author: Terms.Law Editorial Team

⚖ The Irony Is Not Lost On Us

A law site reviewing a "Legal" company that isn't a law firm. LegalZoom's entire business model depends on the legal fiction that selling legal documents isn't practicing law. Their terms are carefully crafted to ensure that when their template LLC agreement doesn't fit your situation, they bear no responsibility. It's legally brilliant and ethically questionable.

Score Breakdown by Category

How LegalZoom's terms rate across our evaluation categories.

💰 Service & Fee Transparency (30%) 40/100

Why this score: Pricing is displayed upfront, but aggressive upselling throughout the process adds significant costs. A "free" LLC filing becomes $500+ with recommended add-ons. The "Business Advisory Plan" subscription auto-renews annually.

Industry comparison: Incfile: 45/100 (clearer base pricing) | Rocket Lawyer: 35/100 (subscription model) | DoNotPay: 32/100 (unclear service scope) | Category avg: 38/100

⚖ Liability & Disclaimers (25%) 35/100

Why this score: Extensive "not a law firm" disclaimers eliminate malpractice liability. Template documents come with no fitness warranty. Maximum liability capped at fees paid in last 12 months. No attorney-client privilege for any communications.

Industry comparison: Incfile: 40/100 (similar disclaimers) | Rocket Lawyer: 38/100 (attorney network adds complexity) | DoNotPay: 30/100 (AI compounds issues) | Category avg: 36/100

🔄 Subscription & Cancellation (20%) 45/100

Why this score: All subscriptions auto-renew by default. Registered agent service cancellation requires 30-day notice. "Business Advisory Plan" cancellation process is multi-step. Refund policy is limited to unused services.

Industry comparison: Incfile: 48/100 (clearer cancellation) | Rocket Lawyer: 35/100 (7-day trial trap) | DoNotPay: 40/100 (simpler subscription) | Category avg: 42/100

📄 Document Quality & Limitations (15%) 48/100

Why this score: Templates are professionally drafted but one-size-fits-all. Complex business arrangements, multi-member LLCs with custom allocations, or unusual circumstances require actual legal counsel. No guarantee documents comply with all state requirements.

Industry comparison: Incfile: 45/100 (formation-focused) | Rocket Lawyer: 42/100 (wider template library) | DoNotPay: 30/100 (AI-generated concerns) | Category avg: 41/100

👥 Dispute Resolution (10%) 45/100

Why this score: Mandatory arbitration with class action waiver. California law governs (favorable for consumers). 60-day dispute notification requirement. Small claims court option preserved.

Industry comparison: Incfile: 45/100 (similar terms) | Rocket Lawyer: 40/100 (stricter arbitration) | DoNotPay: 38/100 (complex jurisdiction issues) | Category avg: 42/100

Compare With Other Platforms

⚠ Key Clauses to Watch

These provisions in LegalZoom's terms create the most risk for consumers.

"Not a Law Firm" Disclaimer

High Risk

Despite having "Legal" in the name and selling legal documents, LegalZoom explicitly states they are not practicing law. This means no malpractice insurance protects you if their templates cause harm.

"LegalZoom is not a law firm and does not provide legal advice. The information provided is general and is not a substitute for legal advice from a licensed attorney." LegalZoom Terms of Service

No Attorney-Client Privilege

High Risk

Communications with LegalZoom are not privileged. Any information you provide could potentially be disclosed in litigation. Real attorneys provide confidentiality protections.

"No attorney-client relationship is created between you and LegalZoom or any of its employees. Your communications with us are not protected by attorney-client privilege." LegalZoom Terms of Service

Template Document Limitations

High Risk

Documents are provided "as-is" with no warranty they'll work for your specific situation. Multi-member LLC? Complex equity splits? You're on your own.

"Documents provided through our services are templates only and may not be suitable for your specific circumstances. We make no representations regarding the legal effect of any document." LegalZoom Terms of Service

Subscription Auto-Renewal

High Risk

Registered agent services and "Business Advisory Plans" auto-renew indefinitely. Many customers report difficulty canceling and unexpected charges.

"Your subscription will automatically renew at the end of each subscription period unless you cancel. You authorize us to charge your payment method for each renewal period." LegalZoom Subscription Terms

Aggressive Upselling During Checkout

Medium Risk

A $0 LLC filing becomes $500+ with "recommended" add-ons. EIN filing ($79) is free from the IRS. Operating agreements ($99) are available free online.

"Additional services may be offered during checkout. These services are optional but recommended for complete business setup." LegalZoom Checkout Process

Registered Agent Service Lock-In

Medium Risk

Canceling registered agent service can leave your business non-compliant. The transfer process is complex and LegalZoom doesn't make it easy.

"If you cancel Registered Agent service, you are responsible for appointing a new registered agent and filing the appropriate change of agent documents with your state." LegalZoom Service Terms

Analysis

"LegalZoom built a billion-dollar company on a legal loophole: selling legal documents isn't practicing law if you disclaim everything carefully enough. Their terms of service are actually quite well-drafted - ironically, probably by actual lawyers who understood exactly what protections to include.

The problem isn't that LegalZoom is scamming anyone. Their templates work fine for simple situations. The problem is that consumers don't know when their situation is simple. A single-member LLC for a solo consultant? LegalZoom is probably fine. A four-person startup with different capital contributions, vesting schedules, and equity splits? You need a real lawyer, and LegalZoom's terms ensure you can't blame them when you find out too late.

My recommendation: Use LegalZoom for truly simple filings where you understand exactly what you're getting. For anything complex, the money you save isn't worth the protection you lose by not having an actual attorney-client relationship."

LegalZoom Terms of Service Review

⚖ The Irony Is Not Lost On Us

Score Breakdown by Category

Compare With Other Platforms

⚖ LegalZoom Issues?

⚠ Key Clauses to Watch

"Not a Law Firm" Disclaimer

No Attorney-Client Privilege

Template Document Limitations

Subscription Auto-Renewal

Aggressive Upselling During Checkout

Registered Agent Service Lock-In

Analysis

Need Actual Legal Help?

Schedule a Consultation

LegalZoom Terms of Service Review

⚖ The Irony Is Not Lost On Us

Score Breakdown by Category

Compare With Other Platforms

⚖ LegalZoom Issues?

Related Resources

⚠ Key Clauses to Watch

"Not a Law Firm" Disclaimer

No Attorney-Client Privilege

Template Document Limitations

Subscription Auto-Renewal

Aggressive Upselling During Checkout

Registered Agent Service Lock-In

Analysis

Need Actual Legal Help?

Schedule a Consultation