I formed an LLC in Arkansas five years ago, and used LegalZoom. Like others, I was caught unaware by the $159/yr registered agent fee, but that’s on me for not reading the fine print. Business practices like subtle costs and mandatory auto-deduct do take away from the credibility of the institution though, and when I asked to cancel my service I was informed of the following:
1. I must maintain a registered agent service through legalzoom until I dissolve my LLC
2. To dissolve my LLC I must pay $338
3. After paying, I was informed they couldn’t complete my order because of unpaid state taxes.
4. They instructed me to contact Arkansas tax folks to figure out I owed $150/yr for each year of the LLC’s life, now complete with late fees for four of the years.
My main complaint is that every year my LegalZoom dashboard said “No additional filing requirements”. So not only do I have all these fees, but the actual registered agent never informed me of taxes I needed to pay the state, nor were they proactive about telling me before I paid the $338 to dissolve. I’m just glad I found this out now before I had 15 years of back taxes due.
I reached out to LZ customer service and had a nice conversation with them about what I needed to do. Their customer support is alright, but the problems are driven by their own policies and failures, and I will not see a dime refunded for these expenses that total well over $1000. As of now I have paid the back taxes but I’m still waiting on LZ to finalize the dissolution. Hopefully there are no other mysterious fees.
The attached picture is what showed as due every single month of the year.