Arizona Supreme Court Approves Alternative Business Structure License for LegalZoom Company

Rhea-AI Summary

LegalZoom's subsidiary, LZ Legal Services, has received an Alternative Business Structure (ABS) license from the Arizona Supreme Court. This milestone aims to expand access to affordable legal services and enhance technological innovation in the sector. The move positions LegalZoom to directly offer limited legal services to individuals and small businesses, thereby increasing opportunities for independent attorneys. With significant disparities between legal and financial service adoption of technology, this reform is expected to democratize the legal landscape, making law more accessible for all.

Positive

• Approval of ABS license increases access to legal services in Arizona.
• LegalZoom can provide direct limited legal services to individuals and small businesses.
• Potential for increased opportunities for attorneys within the state.

Negative

• None.

State-level license allows company to increase access to legal services for consumers and benefits independent attorneys

GLENDALE, Calif., Oct. 01, 2021 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (NASDAQ: LZ) subsidiary, LZ Legal Services, has been approved by the Arizona Supreme Court for an Alternative Business Structure (“ABS”) license in the state. The approval positions LegalZoom, a leading online platform for legal and compliance solutions, to accelerate its efforts to democratize law by allowing for greater technological innovation in the delivery of legal services. It also has the potential to make legal services available at more-affordable prices.

Traditionally, the legal industry has been slow to adopt technology. For comparison, IBISWorld found that in 2020, approximately 8% of legal services in the United States were conducted online versus approximately 70% of financial services. At the same time, the American Bar Association reported that more than 40% of solo attorneys do not have a website. Reforms such as these are designed to enable industry innovation and increase access to high-quality, cost-effective legal services.

“The law only works when it is available to everyone. Yet too many people don’t have access to the legal system either because they can’t afford an attorney or are not familiar with how to use the law to protect their businesses, families or intellectual property,” said Nicole Miller, General Counsel of LegalZoom. “These reform efforts create opportunities to bring innovative new solutions to market that can benefit both small business and consumers as well as lawyers, and we encourage other states to pursue similar reforms.”

LegalZoom will be able to directly provide limited legal services to individuals and small businesses through LZ Legal Services’ ABS license. Additionally, the company will be able to create more opportunities for attorneys within the state.

“This is an exciting milestone for our company and those we will be able to serve in new ways,” said Daniel Wernikoff, CEO of LegalZoom. “We intend to continue advancing our mission to democratize law by deeply integrating attorney expertise and support with LegalZoom’s technology, process efficiencies, and commitment to providing affordable access to legal services.”

Arizona is among the first few states to embrace regulatory reforms that increase industry innovation and access to legal services.

About LegalZoom

LegalZoom (NASDAQ: LZ) is a leading online platform for legal and compliance solutions in the United States that is on a mission to democratize law. LegalZoom operates across all 50 states and over 3,000 counties in the United States and has more than 20 years of experience navigating complex regulations and simplifying the legal and compliance process for its customers. Driven by its core value that every business deserves the full protection of the legal system and a simple way to stay compliant with it, LegalZoom helps its customers form and protect their businesses, their ideas and families. In 2020, 10% of all new LLCs and 5% of all new corporations in the United States were formed through LegalZoom, enabling small business owners to apply their energy and passion to their businesses instead of the legal and regulatory complexity required to operate them. In addition to business formations, LegalZoom offers ongoing compliance and tax advice, trademark and copyright filings and estate planning documents to protect small businesses and the families that create them.

Media Contacts

Bryan Curran
LegalZoom
bcurran@legalzoom.com

Alexandra Gardell Kreuter
Allison+Partners
press@legalzoom.com

FAQ

What is the significance of LegalZoom's ABS license approval in Arizona?

The ABS license approval allows LegalZoom to enhance access to affordable legal services and directly provide limited legal services to consumers and small businesses.

How does LegalZoom plan to utilize its new ABS license?

LegalZoom intends to integrate attorney expertise with technology to offer more innovative legal solutions and improve access to legal services.

When was LegalZoom's ABS license granted?

LegalZoom's ABS license was approved on October 1, 2021.

What is the stock symbol for LegalZoom?

The stock symbol for LegalZoom is LZ.

How does LegalZoom compare to traditional legal services in terms of technology adoption?

LegalZoom highlights that only 8% of legal services were conducted online in 2020, compared to 70% in financial services, indicating a significant gap in technology adoption.