Satisfy Your Legal Needs Fast in This Zoom-Zoom World

It wasn't so long ago that starting a small business was attempted by only the most stalwart of entrepreneurs. It took stamina to brave the reams of paper and hordes of attorneys, real estate agents, and CPAs that were a necessary part of the start-up process. It didn't matter how passionate you were about your idea. If you stopped to think for a moment about the obstacles facing you, you were certain to turn tail and head back to your fluorescent-lit life in a cube.

That's one of the things that thrills me about our new tech-world: Now, many of the mystery hurdles that took more time, money and energy than the idea itself have been replaced with user-friendly options available online.

Almost any aspect of your business can now be brought down to a far less daunting size with a simple click of the mouse. Just as TurboTax simplified much of the tax process, so has the colossally scary legal process been reduced to a kinder, gentler series of mouse clicks and "Continue" buttons by LegalZoom, the online leader that has become so prominent in its market that it's practically a generic.

Here's the gist: LegalZoom takes commonly requested legal documents and boils them down into an easy-to-follow, step-by-step questionnaire. If you need help at any point in the process, simply click on a link that shows frequently asked questions from past users, or call a toll-free number for live assistance. Although the phone representatives aren't lawyers, the questionnaires were created by a highly reputable legal team, meaning customers are getting top quality without paying top dollar. And LegalZoom doesn't just cater to businesses. The site boasts a wide array of consumer services as well, including wills, small claims, real estate deeds and even divorces -- all available from the comfort of your home. And they do the filing for you.

These were the main points that impressed me most when I interviewed Chairman and Co-Founder Brian Liu. He and his co-founders' enthusiasm for providing convenient, affordable legal services was evident, even contagious, as he described how, right after his law school graduation, friends and family poured out of the woodwork seeking the same legal advice, namely starting a business and creating a will. Although it took a while for the seed to germinate, the idea for LegalZoom soon began to grow, and the various components took shape. Theirs would be a site that would not only make certain legal processes both affordable and convenient, but downright simple. Customers' fears were tossed in the paper shredder like a frivolous lawsuit.

But what excited me was what this means for small businesses. By stripping away the most intimidating aspects of the legal process - time, money, and visiting a real-life lawyer face to face - the company has lowered the barrier to entry to a point where any eager entrepreneur could saunter right over it. This is the beauty of their business plan, the gift they are giving to small businesses right at a time when our economy needs it most.

The jargon, the overinflated bills, even the chilly reception of a legal office all disappear when a customer opts for LegalZoom over an in-person lawyer. Business owners may not be familiar with navigating the white waters of the legal world, but they are familiar with navigating a website, which makes LegalZoom far less formidable than the thought of filling out stacks of old-school-style paperwork and waiting in interminable lines in court houses.

While LegalZoom isn't a panacea for all of a business' legal problems (I don't think the Detroit companies will find a legal document to suit their current needs), the brand's sheer array of services is more than sufficient for most small companies to open its doors and get moving without having a pricey lawyer on retainer. Much like Get Satisfaction does for customer service, LegalZoom eliminates the need for a small business to maintain a full-time stable of high-priced legal eagles, meaning more small businesses can open their doors or stay afloat. If the Great Recession has gotten you, LegalZoom can help you file for bankruptcy and even change your name, if you want to start over.

Some naysayers are calling this financial debacle the worst economic crisis the country has faced in 80 years. And while I'll admit I can't wait for it to be over, I'm excited about the opportunity that it creates for new players to get into the game, now that the playing field is leveled. If more entrepreneurs knew about tools like LegalZoom or Get Satisfaction, I'm sure there'd be a lot more stability in the marketplace, if only because a once intimidating process has been simplified.

And who couldn't use a little simplification in their lives these days?

Do you know of a business that is thriving during the recession, or a great tool that small businesses should be using? Have a business question you need answered? If so, contact Lynda.

Comments

[Lita Smith-Mines - Huffpost Blogger]

"By stripping away the most intimidating aspects of the legal process - time, money, and visiting a real-life lawyer face to face..." could be re-phrased to read: "By removing the personalized 'what if' and 'then what' questions an experienced attorney would know to ask after finding out about her/his client's aspirations and expectations, the company has lowered the barrier by creating a cookie-cutter approach that may not work for everyone."

I am all for forms when forms suffice, and often direct my clients to free county/sta­te/federal forms, after finding out what individual business, transaction, or need for protection is required by having a conversation with a client. If someone saves a few hundred dollars and eventually loses a lawsuit or is unable to collect what is due, I guess we'll have a new illustration for the book of cliches alongside "you get what you pay for".

[EinChicago]

""By stripping away the most intimidating aspects of the legal process - time, money, and visiting a real-life lawyer face to face..." could be re-phrased to read: "By removing the personalized 'what if' and 'then what' questions an experienced attorney would know to ask after finding out about her/his client's aspirations and expectations, the company has lowered the barrier by creating a cookie-cutter approach that may not work for everyone."


And, I would add "which will likely cause an extreme surge in costly mistakes made by would-be lawyer's seduced into thinking complex issues are simple and failing to see ramifications that may not be discovered for years, by which time the result is impossible or extremely expensive to correct."

[ciabrat]

I strongly agree with this and similar comments. And anyway, since when does meeting a "real-life lawyer" have to be intimidating? A lot of us got into the law business precisely because we enjoy helping people and solving problems - not easy to do unless we are good listeners and counselors. I don't dispute the usefulness of these websites and forms when a lawyer's time is truly unaffordable, but once the cash flow can support it, good face-to-face legal counsel worthy of the name is priceless and indispensable. Perhaps what is needed is increased pro bono requirements (on lawyers) along with an expansion of the definition of "pro bono" to include reduced-fee services that would make the legal system more accessible to middle-income people.

[FoonTheElder]

All you needed to do in the past was go to your local bookstore and buy a book for $20 that had all of the instructions and forms. Now all of the forms needed are online at the state websites.

[4moretears]

This isn't news, it's an ad!

The statement that "The jargon, the overinflated bills, even the chilly reception of a legal office all disappear when a customer opts for LegalZoom over an in-person lawyer." is at least biased and stereotyped, if not blatantly ignorant. Has the writer ever actually consulted with an attorney?

Contrary to popular opinion, lawyers are actually in business too. They wouldn't stay in business long if this were a common experience. And the chilly reception? As opposed to the warm and cozy comforting personal care of a .... website?

Moreover, the previous poster is correct - the laws in every state are different, and you will not receive adequate advice from a cheap generic service like this. You always get what you pay for, and if you think you'll get adequate legal advice for a few pennies - well, you probably aren't a very savvy entrepreneur, and won't last long in the real world.

In any case, I hope Huffingtonpost received a fee for posting this ad, as it bears no resemblance to news.

[stop the politics]

An often overlooked danger of using legalzoom or other self-help legal services is that the laws of each state are different. For example, Texas LLC law is different than California LLC law. Yes, many of the aspects are the same, but most states put in different provisions in the law. Also, the tax consequences from one state to another are totally different. Something that is taxable in California may not be taxable in Texas. Not to mention the federal tax consequences of making, or not making, certain elections (which you may not even know you are making).

The self help services can be helpful, but be wary, the FAQs can't cover every question, and your situation is not the same as everyone else.

[EinChicago]

"An often overlooked danger of using legalzoom or other self-help legal services is that the laws of each state are different. For example, Texas LLC law is different than California LLC law."

But the one thing they all have in common is the very real dangers of inadvertantly committing offenses like teh issuance of unregistered securities if you don't meet silly things like blue sky regs and file things like Form D notices on time. But what's a little thing lik ethe risk of committing criminal securities fraud when you can save a few hundred bucks?