LegalZoom.com has signed a 10-year lease for headquarters space in Glendale, making good on a threat to move out of Los Angeles after a dispute over its tax rate.
The roughly 400-person company will move from its Hollywood offices into Glendale City Center, a Class-A high rise at 101 N. Brand Blvd., the company announced Monday afternoon.
“We’re really excited about moving to Glendale. We feel like it’s going to make a great home for us for the next six to 10 years,” said company President Frank Monestere, who declined comment on the tax dispute. “We did feel for our employees it would be the best option.”
LegalZoom provides online legal documents, which the company contended made it a pure “Internet” company qualifying for the lowest business tax rate. However, Los Angeles officials contended that since it offered customer service it amounted to a professional services firm, which pay the highest business tax rate.
Glendale has no business tax, but charges businesses a nominal zoning fee.
The company also has plans to expand into Austin, Texas using $1.2 million in local incentives, and wants to hire 600 employees there in four years.
Noted attorney Robert Shapiro and two other lawyers founded LegalZoom in 2001 with former technology company executive Eddie Hartman. It has grown rapidly since it opened.
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