I signed up for Legal Zoom because I wanted to form my LLC but didn't want to go through the trouble of finding and securing an attorney to assist me with the formation. I figured I would save time and money by going with Legal Zoom, but unfortunately, this is what everyone thinks. Legal Zoom says right on their site that they are not lawyers nor do they provide legal advice.
All they do is make sure your form is filled out and send it in. You can literally do this yourself and assign yourself as a the registered agent of the LLC. But you have to know that a registered agent is necessary.
The problem (scam) with Legal Zoom is very clear. This happens all the time, and their collections agency is so good at trying to make you feel like [censored] because they are constantly dealing with frustrated and angry people that had no idea Legal Zoom was going to charge them annually for anything at all.
Legal Zoom does not advertise that they are going to bill you on a recurring basis ($399 a year) when you sign up to have them form your LLC. They do not advertise it. They do not warn you. They do not email you. They simply either automatically debit your bank account (if you have the same account information as you did when you started) or they send you a letter saying the fee has gone to collections (if you have a new account and they can't debit your old one).
Watch out! This is a scam. The way that they claim to make an argument that you owe them the annual fee (or that they won't refund you the annual fee if they've already got your money) is that they say that the annual fee is in the fine print, literally. There is a tiny box that you check on the website when you sign up for what they advertise as a one-time fee to set up your LLC, that says that you agree to the terms and conditions. It doesn't say anywhere other than in tiny fine print in some other place that you are signing up for an autopay.
This is unethical and is intended to milk people of extra money when they don't even know they signed up for it. Legal Zoom needs to be taken to court in a class action for intentionally misleading business practices that procure people's money without proper advertisement or clear explanation. It is shady to say the very least, and they know very well that it is. They will keep misleading people until a major lawsuit forces them to explain what people are purchasing when they purchase it.
By the way, you do not need Legal Zoom to be your registered agent, and they do not tell you this. You can be your own registered agent. Do not let Legal Zoom be your registered agent because that is how they are able to justify debiting your account a year later. They have devised a trick that works for them to scam you of additional money long after you thought you were done needing them.
Never, ever go with Legal Zoom. Get an attorney or do it yourself.