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Beware: Online Legal Companies May Not Actually Save You Money

| Apr 20, 2016 | Business

As we’ve noted before, online legal preparation services have not solved near as many problems for individuals and small businesses as their expensive television advertisements may lead you to believe. In fact, quite the opposite is true but many don’t recognize the shortcomings and instead focus on the apparent cost savings. As one New York business divorce lawyer recently highlighted, documents from the various online legal services companies can often lack some crucial information that may actually cost you much more down the road:

“In good times when business partners get along well and pull together, the LLC agreement sits unnoticed in a filing cabinet. The true test of an LLC agreement is when times get tough and the members’ interests diverge….[Y]ou’re better off spending the money up front for 5 to 10 hours of a qualified lawyer’s time – someone who can ask the right questions and provide the right drafting solutions in a well-planned, comprehensive operating agreement than buying a $149 form agreement that provides no solutions when problems arise or, worse yet, adds fuel to the fire when they do.”

If you’re considering starting a business, our business formation services start at $875 (including basic filing fees) and provide you with the peace of mind that your documents were prepared by a licensed attorney with your best interests in mind. If you’ve incorporated with an online legal services provider, contact us today for a review of your formation documents and we’ll work to ensure that your entity is up-to-date and adequately protected. 

Ariel Bedell is a Shareholder at The Loftin Firm. For questions relating to any other California real estate, corporate governance, land use, or estate planning matter, contact Ms. Bedell at 760-814-9649.