LZ LegalZoom com Inc

LegalZoom (Nasdaq:LZ), a leading online platform for legal services, today released new customer data showing that approximately 30% of new businesses are formed in the first quarter, up from 27% in 2021 – making January an ideal launching pad for a new business. For many entrepreneurs, forming an LLC remains a crucial step in business ownership, with 48% of LegalZoom business owners citing limiting personal liability as their primary motivation, while 50% seek the legitimacy that helps businesses grow and access capital.

LegalZoom data shows almost 60% of new LegalZoom business owners are fulfilling their dreams by stepping into entrepreneurship for the first time. The data also shows continued momentum post-pandemic with small business growth in the first quarter of 2024 surging 50% since the same period in 2019. The evolving work landscape has created unprecedented opportunities, with over 70% of small business owners now operating from home, and 53% successfully managing new ventures while maintaining other employment.

Key trends driving this entrepreneurial wave include the significant rise in female entrepreneurship, with women now comprising 43% of self-employed Americans—the highest percentage on record—according to the Bureau of Labor Statistics. Additionally, people are embracing flexible, home-based business models, with nearly half of new business owners (45%) dedicating less than 20 hours a week to their ventures.

“We're seeing a remarkable shift in how people approach entrepreneurship, with more individuals than ever finding innovative ways to turn their passions into sustainable enterprises," said Erin Mrozek, Senior Director of Product Marketing, Research & Insights at LegalZoom. “Whether you're looking to turn a side hustle into a full-time business or transform a long-held passion into an official venture, now is a great time to seize the momentum of the season and take actionable steps toward business ownership. Forming a business is exciting, but can also be confusing and difficult to navigate, full of government and reporting requirements. LegalZoom is committed to not only helping launch your business, but to also serving as the one-stop-shop for your compliance and legal needs.”

For more information on launching your business in the new year, visit www.legalzoom.com.

LegalZoom’s State of Small Business survey was conducted by its Research & Insights team, in partnership with Magid Research and Dynata. Responses were collected between August-September 2024, among a stratified sample of approximately 5,000 LegalZoom Small Business formation customers.

About LegalZoomLegalZoom is a leading online platform for business formation in the United States. Driven by a mission to unleash entrepreneurship, LegalZoom delivers comprehensive legal and compliance products and expertise for small business owners through easy-to-use technology. From free business formations to business management solutions and professional advisory services, LegalZoom supports millions of small business owners and their families throughout the entrepreneurial journey. Founded on the belief that everyone should have affordable access to legal and financial expertise, LegalZoom empowers entrepreneurs to make their dream a reality. For more information, please visit www.legalzoom.com.

Contact: press@legalzoom.com