Business
New Survey from LegalZoom Reveals Compliance Is Weighing on Small Businesses in 2026
33% of small business owners say compliance requirements have prevented them from pursuing new business opportunities MOUNTAIN VIEW, Calif.--(BUSINESS
About this update from Legalzoom.com, Inc.
[{"type":"text","content":"\n33% of small business owners say compliance requirements have prevented them from pursuing new business opportunities\n\n\n MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--\nLegalZoom.com, Inc. (Nasdaq: LZ), America’s #1 online legal services company, today released a new survey revealing that 33% of small business owners say compliance requirements have prevented them from pursuing new business opportunities. The most often missed opportunities include expanding into new areas (46%), securing new partnerships or investment (44%), hiring (43%), and launching new products or services (41%).\n\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260326323910/en/LegalZoom research shows what compliance workloads look like.\nTo better understand the current state of compliance, LegalZoom surveyed 1,000 small business owners across the U.S. The results offer a detailed view of how much time it takes, how workloads are changing, and the consequences when obligations are missed. They also reveal how compliance pressures influence confidence, risk exposure, and long-term growth plans.\n\n\nBusiness owners across the board are spending more time keeping their businesses compliant with a wide range of rules and regulations, including licensing and permits, contracts, tax compliance, employment law and everything in between. Nearly half of business owners report that compliance is taking more time than it did last year, with 32% spending up to 20 hours per month on compliance-related tasks. Forty-six percent say their compliance workload is heavier than one year ago, with 13% describing it as “much heavier.” Only 7% say it is lighter. What’s more, half of all business owners expect their compliance workload to increase next year.\n\n\nThe stakes of managing this workload are significant. One in four small business owners (25%) report receiving a compliance-related warning, fine, or citation. Most penalties totaled between $2,000 and $10,000, including fines, fees, and lost revenue. For small businesses, this can represent a significant unplanned expense. Beyond paying fines, businesses also had to modify internal processes, update documentation practices, or implement new tracking systems to prevent repeat violations.\n\n\nWhat makes these consequences harder to bear is that the rules them...