Is LegalZoom.com, Inc. LZ stock halal to invest in?

Yes, as of August 2026, LegalZoom.com, Inc. stock (LZ) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. LegalZoom.com, Inc. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 99.21%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of LegalZoom.com, Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is LegalZoom.com, Inc. LZ reviewed for Shariah compliance?

Tabadulat reviews LegalZoom.com, Inc. LZ for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for LegalZoom.com, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does LegalZoom.com, Inc. LZ pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, LegalZoom.com, Inc. stock (LZ) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. LegalZoom.com, Inc.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does LegalZoom.com, Inc. LZ pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, LegalZoom.com, Inc. stock (LZ) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). LegalZoom.com, Inc.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does LegalZoom.com, Inc. LZ pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, LegalZoom.com, Inc. stock (LZ) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. LegalZoom.com, Inc.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for LegalZoom.com, Inc. LZ stock?

As of August 2026, the dividend purification factor for LegalZoom.com, Inc. (LZ) is 99.21%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on LegalZoom.com, Inc. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does LegalZoom.com, Inc. LZ pass the AAOIFI Preference Share screen?

Yes, as of August 2026, LegalZoom.com, Inc. stock (LZ) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. LegalZoom.com, Inc. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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LegalZoom.com, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

About

LegalZoom.com, Inc.

LZ

LegalZoom.com, Inc. is a comprehensive legal technology service provider that aims to simplify the legal process for small businesses and individuals. It offers online legal document services for entities such as business formation, estate planning, intellectual property, and real estate. By reducing the complexity of legal paperwork and providing affordable access to professional legal services, LegalZoom serves a broad clientele that includes entrepreneurs, families, and small business owners seeking efficient legal solutions without the traditional costs of a law firm. The company operates predominantly across the United States but also extends its services to the United Kingdom. With its innovative use of technology and an intuitive platform, LegalZoom plays a pivotal role in democratizing legal access, enabling customers to navigate legal requirements with ease. Founded in 1999 and headquartered in Glendale, California, LegalZoom has significantly contributed to the digital transformation of the legal service industry, leveraging its market position to support a growing demand for legal solutions in the digital age.

Sector:

Industrials

Industry:

Specialty Business Services

Employees:

964

Website:

https://www.legalzoom.com

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LegalZoom.com, Inc.

About

LegalZoom.com, Inc.

LZ

Frequently asked questions

Is LegalZoom.com, Inc. LZ stock halal to invest in?

How often is LegalZoom.com, Inc. LZ reviewed for Shariah compliance?

Does LegalZoom.com, Inc. LZ pass the AAOIFI Non Permissible Income criteria?

Does LegalZoom.com, Inc. LZ pass the AAOIFI Interest Bearing Investments criteria?

Does LegalZoom.com, Inc. LZ pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for LegalZoom.com, Inc. LZ stock?

Does LegalZoom.com, Inc. LZ pass the AAOIFI Preference Share screen?

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