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LegalZoom Review: Should I Use Online Legal Documentation Services?

By Frank Cseke of The Offices of Frank A. Cseke

As an attorney I am often approached by people asking me to look over a legal document to see if it is done right. One of the first questions I ask them is, did you draft this yourself, and if not where did you get it? A common answer is, "I got it online."

You may have heard of LegalZoom.com. The likelihood is also that you are aware that this website is one of the best known and largest online clearinghouses for legal documentation, endorsed by Robert Shapiro. One question I would like to ask Mr. Shapiro is whether LegalZoom is superior to obtaining the same service from a local practitioner.

So as to be both fair and balanced, I would like to explore the pros and cons of using a LegalZoom.

The Pros: (1) It's affordable. Legal documents for important purposes such as a company's LLC or a will and trust are obtainable for what may be less than the local attorney's fees (a $69 will doesn't sound bad); (2)It's fast. The website offers same-day delivery of the documents via downloading; (3) It's has attorney oversight. It is hard to say who is doing what, but LegalZoom advertises its services with the "warrantability" of attorneys working behind the scene.

Read, however, LegalZoom's full disclaimer:

"LegalZoom's legal document service is not a substitute for the advice of an attorney...

LegalZoom is not permitted to engage in the practice of law. LegalZoom is prohibited from providing any kind of advice, explanation, opinion, or recommendation to a consumer about possible legal rights, remedies, defenses, options, selection of forms or strategies...

Therefore, if you need legal advice for your specific problem, or if your specific problem is too complex to be addressed by our tools, you should consult a licensed attorney in your area. Visitors to our site may obtain information regarding free or low cost representation through your state bar association or local legal aid office."

The Cons: (1) LegalZoom is not a 'substitute'. You are not getting the advice of an attorney!; (2) LegalZoom is not engaged in the practice of law. As such, LegalZoom is not taking on the same liability that an attorney is when he/she is engaged in practicing; this begs the questions if their documents are prepared with the same "duty of care" owed to a client compared to that of a local practitioner; (3) It is not comprehensive, e.g. "if your specific problem is too complex..." Therefore, if your problem is too complex LegalZoom will not suffice for competent legal help. This also begs the question as to how one will know if their problem is complex unless they speak to a qualified attorney?

I am not one to shun or disparage an affordable and convenient service, unless I feel a consumer could end up getting injured in the end. One can relate, especially if they have met with an attorney, that very few legal problems are "simple" - thus why one went to seek the counsel of an attorney rather than attempt to figure it out on their own. Yet, in all fairness to LegalZoom, there are some sophisticated consumers who are both learned in legal matters and laws - though not attorneys - who can utilize LegalZoom to their advantage. Saving money and time is unsually a good thing; but, when "self-help" ends up costing more time and money in the end because of a critical error or lack of oversight, the regret can be profound. So, as with anything like LegalZoom use it with caution and avoid taking a cavalier approach to solving a legal problem.

For answers to your questions you may contact: Frank A. Cseke Attorney at Law 2120 Timber Creek Drive, C-2
Fort Collins, CO 80528 Office: 970.219.9978
Fax: 970.631.8897 email: estateplanner@mcom.com

[Circular 230 Disclosure: pursuant to recently enacted U.S. Treasury Department Regulations, we are now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained on this website, including links, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. The information on this site is for information only. It is not intended to offer legal advice of any kind. This website does not establish the attorney-client relationship. Should you have any questions regarding legal matters you should contact an attorney.]

Frank A. Cseke is a Fort Collins, Colorado-based attorney whose practice is focused on the areas of Estate Planning (Wills and Trusts), Business Law, VA and Governments Benefits Assistance. He serves as President of the Northern Rocky Mountain Chapter of the Society of Financial Services Professionals. Before setting out on his own, Frank practiced civil litigation and criminal defense for two Northern Colorado law offices, where in his general practice work he grew his passion for Estate Planning and Elder Law. Moreover, he has taken on an emphasis in Veterans and Special Needs trusts. Frank received his J.D. from the University of Colorado, School of Law (Boulder), in 2004, where he also worked as a student associate for LexisNexis, Inc. Prior to attending law school, Frank gained experience as an entrepreneur and LLC manager, and later as General Counsel, with 4 Guys Investments, LLC of Fort Collins. Frank obtained his undergraduate degree (a B.A. in Political Science with High Honors) from Franklin Pierce University (Rindge, NE) in 1999, where he was a member of Alpha Chi, Phi Alpha Theta, and Sigma Tao Delta. Frank, who grew up in Fort Collins, Colorado, now lives there with his wife, Daffney, and his son, Matthew, and step-son, Austin. "We are here to add what we can to life, not to get what we can from life." -William Osler

PLEASE VISIT THE CONTRIBUTOR'S WEBSITE

The Solo Lawyer
Sole attorney-practioner blog and blawg
thesololawyer.blogspot.com

Great information, Frank.
Their is so much information on the internet. I think many people forget that there are professionals, in many fields, that should be consulted before they use that info.
Keep up the good intels.
Frederick

frederick Jan 16, 2010 08:46

I'm sure there must be a legal document somewhere on there to ask Mr. Shapiro whether LegalZoom is superior to obtaining the same service from a local practitioner. (grin)

Yes, too fast. I am not convinced that all legal matters ought to be handled with speeds not accounting for deliberation, analysis, and research. Potentially, anything through LegalZoom can be superior to the services offered through a local attorney; however, whether this suggestion will "hold water" for each and every consumer is dubious to say the least. Yet, at any rate there is some utility to LegalZoom.

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