Previously, we discussed a variety of topics including: how to gain capital for your startup, establishing and building business credit, as well as 6 legal steps to take to protect your business. If you missed any of these topics, the great news is you can find them and links to the videos by visiting the blog section, or scrolling below this post. Today, we will uncover the differences between utilizing Legal Zoom and actually hiring an attorney. If you’ve been enjoying this free information, please share with other business owners. To watch the video, simply click the image below.
What Is Legal Zoom
Legal Zoom is a document prep service that provides legal protection documents for individuals or companies. Legal Zoom is used for a number of reasons including but not limited to: the creation of wills, contracts, or documents for the formation of your business entity.
Benefits of Using Legal Zoom
Let’s discuss some of the benefits of using Legal Zoom and why it may be the best fit for your business situation.
Low Cost
One of the best benefits of Legal Zoom is that it carries a low cost in comparison to hiring an attorney. For some people, this is an added benefit as it relates to doing business with a document creating company.
Quick Turnaround
There is a quick turnaround time when using Legal Zoom. One of the awesome things about the website is that you can type in the required information needed to create the documents, and they provide them to you within 20 to 30 minutes. Most customers are always looking for quick and efficient methods of getting things done; that is definitely something you get when utilizing Legal Zoom.
General Guidance
Legal Zoom also offer some general guidance about the purpose and use of the forms requested, but it is definitely worth noting that this service is not to be mistaken as a law firm.
Things to Consider When Using Legal Zoom
Now that we have uncovered some of the pros of using Legal Zoom, lets dig a little deeper into things you should consider before deciding against hiring an attorney.
Legal Zoom is Not a Law Firm
As previously stated, Legal Zoom is not intended to take the place of a licensed attorney. In fact, it includes a disclaimer that specifically states the company is not responsible for providing you with any type of information that would be the same as if you were consulting with an attorney. They actually encourage you to seek legal advice for more detailed information about the decisions you are making and about how you are drafting particular forms on their site.
Another interesting disclaimer states 80% of blank forms created by Legal Zoom are filled in incorrectly by customers. They do offer opportunities to contact one of their professionals, but it is at an additional cost and those professionals may not be attorneys who are licensed in your particular state.
No Review For Legal Sufficiency or Document Customization
Because they are not a law firm, they are not looking for legal sufficiency and do not draw legal conclusions or provide legal advice for your particular situation. You are simply typing information into generated templates; the documents and guidance provided for those documents are generic. This may be helpful for some people, but not necessarily for particular circumstances which may expose you to greater risk.
When utilizing Legal Zoom you are not receiving documents or advice that is customized for your specific needs. It is important to understand the value of customized counsel in certain situations such as the formation of a business or creating a will that protects our legacy.
Why You May Need an Attorney
Some factors that may deter people from hiring an attorney include price and turnaround time. This is definitely understandable because as consumers, we all want to make sure that we are getting the best bang for our buck and that we're getting the requested information in a timely manner. So why hire an attorney?
You Are Hiring a Trustworthy Professional
You must realize that when hiring an attorney, you are getting a service from a professional who is going to study and analyze your particular situation. When operating at their best capacity, an attorney provides you with information regarding the risks associated with the contract put in place. They think through and synthesize based on the information you're providing to inform you of how these documents should be more customized to meet your particular needs.
Receive Personalized Legal Advice
An attorney will be there to help you as it relates to giving you legal advice. For instance they can advise you on which route to take when deciding on a business formation depending on your particular circumstances. This unfortunately is not something you would get with Legal Zoom. What you specifically request is what the software will create on your behalf without any thought into what other legal implications may be involved.
Tips For Hiring an Attorney
When you are searching for an attorney, there are a few things you can do to be sure you are selecting someone who fits your business needs.
Hire an Attorney With a Specialty
You definitely want to find an attorney who has a specialty in the area in which you are seeking help. If you are in need of assistance with estate planning, drafting a will, or specialized contracts, then you want to make sure you are dealing with an attorney who specializes in that particular field. This ensures that they are able to provide the best services to you.
Interview an Attorney
It is perfectly okay to go into a conversation with an attorney with the mindset that you are interviewing them to be sure they are a good fit for you. A few things to consider are if their values match up with the things that are important to you and your business, their personality, their turn around time for responses to emails, questions or concerns, their expertise as it relates to your particular needs, and their pricing.
Inquire About Their Fee Model
I know that consumers are especially concerned with making sure that they are getting a bang for their buck. No one wants to feel like they are paying this large fee for services and that the services they received did not amount to what they payed out. One thing you might ask an attorney about is whether they offer fixed fees for certain services like contract drafting or if there is an alternative fee model that could be used. This way, there is a mutual benefit for the attorney because they are receiving your business and for yourself, because you know outright and upfront what you are paying for and what the fees look like associated with that service.
Stay Connected!
I hope this information has been helpful to you! If it has, please share this information with a business owner that may also find it useful. If you have additional questions, would like to do a deep dive into how you can protect your business, or want to ensure that you have the proper contracts in place, message or email us to schedule your own personal consultation. We will talk through how we can customize a plan for your business and its needs. Finally, if you have not already, be sure to follow us across all platforms so that you do not miss out on this good information. Until next time!