It's only as legal as the cops or inspectors think it is. The law technically is it must exit behind or above the passenger compartment, mine exits 4" after the door and it still technically in the middle of the passenger compartment since I drive a B2 but it's behind any openable window, it's loud as hell when there was no cat for over a year and have not been bothered once by the police and when I put a cat on for emissions, it's passed both times and the inspectors never said anything.
Here's mine, I actually notched the the body for it, the last 12" of the exhaust is 3" just for looks. Since you have a body lift, run it between the frame and body like I did, it keeps it very well protected off road and looks better than going under the frame.
Here's more detailed pics, this was before I notched the body.