Report: #335747

Complaint Review: LegalZoom

  • Submitted: Fri, May 30, 2008
  • Updated: Wed, July 29, 2009
  • Reported By: Concord Massachusetts
  • LegalZoom
    7083 Hollywood Blvd.
    Los Angeles, California

LegalZoom Mistake in forming non-profit Delaware corporation; promised to correct; never did Los Angeles California

*Consumer Suggestion: LegalZoom is Pulling the Whool Over Consumers Eyes

Show customers why they should trust your business over your competitors...

In February 2008 I was looking to form a non-profit corporation. I have seen many advertisements and promotions for company on the Internet, on radio and television.

Our club is not a charity under IRS section 501(c)(3) but does qualify as a non-profit social club under 501(c)(7). Information on LegalZoom's website lists this and several other sections of the IRS code under which non-profit corporations can be formed.

I used their website to fill out extensive information about the corporation, its officers, and specifically that is was to be formed under 501(c)(7) -- that being one of the choices in a drop-down menu. The approximate $350 charge wasn't the cheapest service, but the website questions appeared to indicate their service could accomodate my need.

Upon receiving my corporation documents several weeks later, the corporation was formed under 501(c)(3) as a charity, and not as a 501(c)(7) club. Much of the information I had listed as to corporate officers and stated purpose was not included in the corporate documents -- just generic information about their own registered agent. I immediately called LegalZoom that day to point out their mistakes and ask for help. After almost 90 minutes on the telephone, their claiming that no information about 501(c)(7) corporations is on their site, and my reminding them of their "unconditional money back guarantee", a supervisor finally agreed to correct the mistake and file a corrected certificate of incorporation at their expense.

As you might have guessed, it is now several months later and they have done absolutely nothing at all. The time limit for requesting a refund has passed. I am stuck paying another $130 to correct the papers with the State of Delaware.

I guess the moral of the story is if you want competent legal services performed correctly, and not just by an automated website (and even that website cannot repeat entered information correctly) -- or automoton humans at the end of a phone line, then go hire a real lawyer.

Concord, Massachusetts
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#1 Consumer Suggestion

LegalZoom is Pulling the Whool Over Consumers Eyes

AUTHOR: Marc - (U.S.A.)

Most of what LegalZoom offers for their service for a price is free with your local courts. Most if not every court offers the forms that LegalZoom charges are free. For example, name change. LegalZoom charges $139 for an adult to put together the paper work ready for court filing. They fail to tell you about the court cost to file your paper work with the courts. If an individual goes down to there local court house they can get all the forms and it will explain step by step on how to proceed with changing your name. FREE!
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