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Thoughts on using online legal such as Legalzoom to form LLC vs. local attorney
lemonbug
subscriber Posts: 6 Member
Hi everyone-
I am planning on using legal zoom to form my LLC unless anyone has a reason not to. Down the road I plan on using a local attorney for other legal issues, but for the LLC formation I am hoping to save money by doing this one online.
Does anyone strongly recommend against doing this or have any other thoughts?
Thanks, lb
I am planning on using legal zoom to form my LLC unless anyone has a reason not to. Down the road I plan on using a local attorney for other legal issues, but for the LLC formation I am hoping to save money by doing this one online.
Does anyone strongly recommend against doing this or have any other thoughts?
Thanks, lb
Best Answers
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Ryan O'Bleness
administrator Posts: 1,137 Site Admin
I think I actually used Rocket Lawyer for that. Essentially, we were filming some on-location video out of state and had the release forms for those who may have been filmed. The site asks you to fill-in a few lines of information such as company name, address, phone number, etc., and other than that it generates the entire form for you. Which is really just a standard template, it's not very customizable, but it is a legitimate legal form.
You just have to have participants and pedestrians who get capture on camera sign and date it. It's pretty simple. Rocket Lawyer offers a free trial for a week or a month, and then you have to pay for the services, but I recall it being pretty cheap.Ryan O'Bleness
Community Manager
StartupNation, LLC -
Steve Nichols, MS
subscriber Posts: 11 Bronze Level Member
I've worked with estate planning attorneys to help them write blog articles on this very topic. They're biased in favor of hiring an attorney, but some of the arguments they make are pretty compelling. In this case, my layperson's opinion based on what I've seen is that using forms will work to form your business, but a lawyer will help you think strategically about the best business entity to select in terms of how you'd like your business to develop in the future. They might also make you think of things you hadn't considered such as the tax implications of choosing a particular entity over another.
Finally, the most compelling argument I've heard is that you know that your legal documents are valid in the state in which you operate if they're made by an attorney who's licensed in that state. Forms and products like LegalZoom might not account for the nuances of the laws in the state where your business is located.
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Answers
I don't have much experience with sites like LegalZoom, other than to create quick documents, such as video release froms (which worked out nicely). So I don't want to give you bad advice. I can, however, point you to a good article on the subject.
This is a very recent review from Startup Savant on the subject. It breaks down the pros and cons of using LegalZoom to start an LLC: https://startupsavant.com/legalzoom-review/
Community Manager
StartupNation, LLC
In my first business, I furnished my offices with all used desks and chairs which saved cash for advertising and payroll. Good luck and glad to hear about your new venture.