Will a Legal Zoom Contract Hold Up in Court?

If you want to start a business, you may have heard of the legal document provider, LegalZoom. This online platform allows you to access legal paperwork to establish a business entity, such as a corporation, partnership, or LLC. Many business owners form LLC, as the entity offers the quickest way for a company to establish itself and will protect it against the seizure of personal property.

There is some doubt about a Legal Zoom contract holding up in court, as it is quickly filled out and filed online. To ensure your filing is totally legit, it is better to choose the services of an experienced business attorney.

What Does Legal Zoom Do?

Legal Zoom represents the legal needs of individuals and businesses by filling in and filing forms related to a specific legal service. Services generally cover the formation of a business entity or non-profit, or the filing of a personal or financial document, such as a will.

For you to obtain additional assistance, you need to sign up, for an added fee, for Legal Protect help. This service allows you to consult with one of a network of Legal Zoom attorneys when you have a question or need to address a legal concern. You are allocated 30 minutes for a consultation for each new issue that is addressed.

Forming an LLC with Legal Zoom

If you wish to protect your personal assets and open a bank account, you can easily do so when you form an LLC, or limited liability corporation. This business entity also helps you enter into contracts, employ people, and obtain the permits and licenses you need to operate.

What Legal Zoom Documents Should I Use?

When you set up an LLC with Legal Zoom, you will be asked several questions and given a choice of operating documents. Before this happens, you need to do the following:

• Tell Legal Zoom the state you want to establish your LLC.
• Give Legal Zoom the chosen name for your business. They will check to see if it is available.
• Select the required documents. Usually, you will need and employer identification number (EIN) to file taxes and hire employees, licenses, and an operating agreement. The operating agreement is the minimum document you need, as it sets the policies for your business
• You will also need to select a registered agent. Legal Zoom offers, for an additional fee, its services as registered agent. A registered agent is needed to accept your business’s mail in your state during regular business hours during the week. They also will mail documents on your behalf.

Legal Zoom features unlimited Legal Protect services for a monthly fee. This amenity provides you with the legal documents you need, 30-minute legal consultations, and access to an online library of legal forms.

The company also offers a service, called “Total Compliance,” where they cover your company’s back, taking care of annual report filings and similar documentation. They claim that they will pay an imposed penalty if they miss any legal requirement in this regard.

Processing the Paperwork for Your Business

Once you choose the add-ons, you can select a processing package, which covers a specific processing time for your business entity. Naturally, you will pay more for a shorter processing time. You can choose from the following options:

• Express Gold, which takes 10 business days
• Standard, which covers 15 business days
• Economy, which takes 30 days

Both the Express Gold and Standard options include a founder’s kit, embosser and certificates.

The Digital Welcoming Pack

You will also receive a digital welcome packet that includes the following:

• Your state’s Articles of Organization
• A financial account authorization letter that states who can open your business’s bank account
• A step-by-step checklist you can check off after your LLC has been formed

Why Is Choosing the Services of a Business Attorney a Better Alternative?

Unfortunately, you are in a more tentative position if you choose to go with Legal Zoom. One of the major concerns involves the lack of legal consultation. By securing the services of a business lawyer, you can have easier access to regular consulting services. You do not have this latitude with a legal form and legal filing provider, such as Legal Zoom.

For example, if you get sued, it is easier to work with an attorney you have already chosen to represent you. Because a lawsuit can severely affect your professional reputation, you need this type of support and backup. The sooner you find a way to resolve the problem, the better. You don’t have this type of advantage if you choose to go with a legal service such as Legal Zoom.

Establishing an LLC or any type of business entity is not a cut-and-dried process. How you proceed depends on the type of business you have, the state where you want to establish yourself, and the policies you wish to establish. This can be more easily and correctly realized by choosing a professional attorney. If you want to play it safe financially or legally, it is better to work with an attorney who is well versed in business filings.