Report: LegalZoom Looks To Shift Out of Hollywood

The latest Internet firm looking to shift its operations out of the City of Los Angeles proper appears to be LegalZoom, according to a report from the Los Angeles Business Journal. According to the LABJ, LegalZoom has told its landlord that it is looking to move when its lease expires in June, as a result of the city's new business tax. The City of Los Angeles has been facing a revolt by a number of local Internet firms over its reclassification of those firms out of the city's lowest "multimedia" business category into higher tax categories. Both Shopzilla and recently said they would stay in the city after they were reclassified to the old lower tax rate. Most of the companies affected by the city's tax laws have been looking at shifting to other, Greater Los Angeles area cities with different tax structures, although LegalZoom in this case recently started up operations in Austin, Texas due to generous economic incentives.