What happened when we followed a LegalZoom LLC ad

At a glance

• 1 · Advertised package$0 LLC Basic Package
• 2 · Total shown today$50 in our Mississippi test, representing the state filing fee
• 3 · Trial serviceState Compliance Filings, included with a 10-day trial
• 4 · Later charge$199/year, first charged 10 days later
• 5 · RenewalAutomatically renews until canceled

See the checkout screens

These are the supplied captures from the observed flow. Select any image to inspect the original full-resolution file.

Watch the complete checkout

Unedited screen recording: following a sponsored LegalZoom placement through a Mississippi LLC checkout, ending at the final payment step. Unedited and uncut.

What the checkout showed, in order

1. In the chat interfaceA separately labeled sponsored company-formation placement appeared beneath an ongoing Corpus formation conversation. The placement was rendered by the chat platform, not by Corpus.
2. Landing and entity selectionFollowed the placement and started a Mississippi LLC formation.
3. Through the flowThe formation was presented as a $50 charge. No recurring charge was shown as selected on the screens leading up to payment.
4. Final payment stepImmediately before the credit-card entry, the checkout disclosed a “State Compliance Filings” subscription at $199/yr, first charged 10 days later, renewing automatically until canceled.
5. Same step — consent languageThe checkout also carried consent language covering marketing calls from LegalZoom and from 1-800Accountant.
6. Never asked, but not optionalA registered agent is a required field on the Mississippi certificate of formation itself — the filing cannot go in without one named. Through the entire flow, up to and including the payment screen, the $50 checkout never raised the subject: not offered, not declined, not listed as included, and never asked. LegalZoom sells the service separately at $249/year under its own terms.
7. And the $199/yr does not cover itThe State Compliance Filings subscription disclosed at the payment step is not registered-agent service. LegalZoom's own subscription terms define it as ongoing state report filings (and, depending on package, federal BOIR amendments), and say registered-agent service is governed by a different supplemental terms document entirely.

The disclosure, word for word

This is the text the checkout showed immediately before the credit-card fields, transcribed from the recording:

“You have selected the following subscription(s) that renew automatically until you cancel. You will be charged for State Compliance Filings ($199/yr) in 10 days. The renewal rate is subject to change. You can cancel renewals anytime by calling us or visiting your LegalZoom account.”

The same step carried consent language covering marketing calls from LegalZoom and from 1-800Accountant.

What you agree to by paying

The full text above the payment button, transcribed from the recording:

“By clicking "Agree and pay now," I agree to the Terms of Service (including its arbitration provision), Privacy Policy, and Subscription Terms. I also agree that 1-800Accountant may call me to discuss my tax needs and that LegalZoom may call me with special offers. These calls may use an autodialer, pre-recorded messages, or an artificial voice. Consent to these calls is not required to purchase; to purchase without consenting, call 1-844-933-0573.”

Worth reading to the end: the last sentence is LegalZoom’s own statement that consenting to those autodialed and pre-recorded marketing calls is not required to purchase, together with a phone number for buying without consenting.

The registered agent was never an optional extra

This is the part that is easy to miss, and it is the most important thing on this page. A registered agent is not a service a formation seller may or may not choose to offer you. In Mississippi it is a required field on the formation document itself:

• Miss. Code Ann. § 79-29-201The certificate of formation must set forth the company's name and the information required by § 79-35-5(a).
• Miss. Code Ann. § 79-35-5(a)That information is the name of the entity's commercial registered agent — or, if it has none, the name, address and email address of its noncommercial registered agent.

The certificate cannot be filed with that field blank. Something goes in it. So a checkout that reaches the credit-card screen without ever asking has not deferred the question — it has answered it on the buyer’s behalf, and not shown them the answer.

We are not saying what LegalZoom put in that field. We did not see that screen, and guessing would be exactly the unsourced claim this page exists to avoid. What we can say is that the field is mandatory, the buyer was not asked, and the $199/yr subscription disclosed at payment is not registered-agent service — LegalZoom’s own subscription terms describe that as ongoing state report filings and defer registered agent to a separate document. On its product page, LegalZoom advertises the service at $249/year, auto-renewing.

That separate document is also where the cancellation terms live: to stop being billed you must give LegalZoom written proof it is no longer listed as your agent with the state, and charges continue until you do.

The question to ask any formation service before you pay: whose name and address will you file as my registered agent, and what does that cost me in year two?

What the linked terms actually say

The checkout links its terms as three words in a sentence above a payment button. Reading them with a card in your hand is not a realistic thing to ask of anyone, so here is what they say. Each answer is short enough to check against the linked source in about a minute.

The checkout never asked who my registered agent is. How is that possible?

It is a required field on the Mississippi certificate of formation — the filing cannot be submitted without a registered agent named on it. So a value goes into that field either way. A checkout that reaches the card screen without asking has settled that question on the buyer's behalf without showing them the answer. Ask any formation service, before you pay, exactly whose name and address they intend to file as your registered agent, and what it costs in year two. Source

Does the $199/yr subscription include a registered agent?

No. The subscription terms describe the compliance filing service as ongoing state report filings, plus BOIR amendments on some packages, and state that registered-agent service is governed by a separate supplemental terms document. LegalZoom advertises registered agent separately at $249/year. Source

How long do I really have to decide?

The charge lands in 10 days. Cancelling stops the next renewal, but the terms say the subscription stays active until the end of the current period, and describe no mid-term refund — so the decision window is those 10 days, not the year. Source

What does “the renewal rate is subject to change” mean?

The subscription terms let LegalZoom raise the fee by notifying you before a renewal term begins, and provide that if you do not cancel, you are deemed to have accepted the new fee. Source

Can I cancel the registered agent later?

Yes, but not unilaterally in practice. The registered-agent terms require you to give LegalZoom written proof that it is no longer listed as your agent with the state, and say charges continue until you do. Their product page says the same thing in a footnote. Source

What if LegalZoom stops being my agent?

The registered-agent terms let LegalZoom resign — for non-payment, inaccurate information, or being unable to reach you — and make you responsible for any resignation filing fee your state charges. Source

Am I giving up the right to sue?

The Terms of Service require binding arbitration and waive class actions, but they also give you 30 days from acceptance to opt out — by U.S. certified mail to General Counsel, LegalZoom.com, Inc., 954 Villa Street, Mountain View, CA 94041. It is a real right with a short clock, and the checkout does not mention it. Source

Do I have to agree to the marketing calls?

No — and LegalZoom's own checkout text says so. It states that consent to those autodialed or pre-recorded calls is not required to purchase, and gives a phone number to buy without consenting. Source

What happens to my information?

The privacy policy says that for business-formation purchases after December 15, 2024, LegalZoom may share business and contact information with its partner 1-800Accountant to offer tax services. It also says LegalZoom may record phone calls, and may use data to develop products including machine-learning and AI technologies. Opting out of sale/sharing runs through a “Your privacy choices” link or an email to their privacy address. Source

Check it yourself

These are LegalZoom’s own published documents. Read them rather than trusting our summary of them.

• Supplemental Terms of Service for Subscriptions and Third-Party Services (LegalZoom)

  Governs the auto-renewing subscription disclosed at the payment step. It describes the compliance filing service as ongoing state report filings (plus federal BOIR amendments on some packages), says a customer remains responsible for the full cost until they cancel, lets LegalZoom raise the fee before a renewal term with non-cancellation deemed acceptance, and states that registered-agent service is governed by its own separate supplemental terms rather than by this document.

  In its words: your subscription automatically renews each year

  Read by Corpus on 2026-08-27.

• Supplemental Terms of Service for Registered Agent Service (LegalZoom)

  The document the subscription terms defer to. Registered-agent service renews automatically until you cancel; to stop being billed you must give LegalZoom written proof that it is no longer listed as your agent with the state, and charges continue until you do. LegalZoom may also resign as your agent, leaving you responsible for any resignation filing fee your state charges.

  In its words: you will continue to incur charges for LegalZoom Registered Agent Services until such proof is provided

  Read by Corpus on 2026-08-27.

• Terms of Service (LegalZoom)

  The master agreement the checkout binds you to. It requires binding arbitration and waives class actions, while giving a 30-day right to opt out by U.S. certified mail to their General Counsel in Mountain View, California.

  In its words: No class or representative actions or arbitrations are allowed under this arbitration provision.

  Read by Corpus on 2026-08-27.

• Miss. Code Ann. §§ 79-29-201 and 79-35-5(a) (Mississippi Code)

  The statutes that make a registered agent a required element of the filing rather than an optional service. The certificate of formation must set forth the company's name and the information required by § 79-35-5(a), and that information is the name of the entity's commercial registered agent — or, if it has none, the name, address and email address of its noncommercial registered agent.

  In its words: The information required by Section 79-35-5(a)

  Read by Corpus on 2026-08-27.

• Privacy Policy (LegalZoom)

  States that for business-formation purchases made after December 15, 2024, LegalZoom may share business and contact information with its partner 1-800Accountant so that 1-800Accountant may offer business tax services. It also says LegalZoom may make audio recordings of telephone calls, and may use data for product development including machine-learning and AI technologies.

  In its words: with our partner 1-800Accountant so that they may offer you access to business tax services

  Read by Corpus on 2026-08-27.

How Corpus prices the same thing

State filing fee + Corpus service fee. Choose your state to see the current state filing fee and Corpus service fee before purchase. Registered-agent service for year 1 is included in your total. EIN filing is optional and priced separately, when available. Registered agent renews at a flat $99/yr after your included first year — cancel anytime.

The full five-year comparison, including the cases where we are not the cheapest option, is on our comparison page.