Nowadays, more business owners seek a LegalZoom alternative. As business owners become more sophisticated, they understand the limitations of the LegalZoom model. We offer commentary on the most common LegalZoom alternatives and help business owners make the correct choice.
LegalZoom alternative: what is the right choice for business owners?
What Is LegalZoom?
We wrote about LegalZoom a few times before. In a nutshell, LegalZoom provides tools to help customers fill out forms. While LegalZoom does offer some add-on services that connect customers with lawyers, the core business helps people fill out forms.
While helpful in some cases, this model has limitations. LegalZoom makes it clear that they do not offer legal advice and that they do not provide a substitute for a law firm. Since many business owners need legal advice – and not just form-filling help – it has lead to a search for a LegalZoom alternative.
LegalZoom was founded in the late 1990s. That makes it twenty years old, an ancient company in Internet time. While once cutting-edge, LegalZoom may not still be at the forefront of online legal services.
A LegalZoom Alternative Provides A Way Forward for Businesses
People often ask for a good LegalZoom alternative. While the ultimate answer depends upon what each business needs, we have come up with some categories of LegalZoom alternatives that may prove useful to business owners everywhere.
This list does not cover every possible LegalZoom alternative, but it gives you an idea of the choices available to your business.
A List of LegalZoom Alternatives
Generally, we have categorized our list of LegalZoom alternatives from most complex to least complex. Depending on your needs, you can choose the level of complexity that appears most appropriate. Most businesses find the best value somewhere near the middle.
Traditional Law Firms
Traditional law firms predate LegalZoom, and for decades, lawyers provided legal services this way. Conventional law firms vary wildly in price and sophistication.
Traditional law firms often bill at an hourly rate. Some traditional law firms bill at over $1000/hr, while others bill at a significantly lower price.
While many traditional law firms represent excellent value (especially for large and established companies), businesses must spend a good deal of time evaluating each firm.
Some clients find traditional law firms hard to work with because of antiquated practices. These practices might include: having to do all of the meetings in person, needing to mail or fax them documents, or a generalized reluctance towards a more efficient way of doing business that would reduce the number of hours that these firms can bill to clients.
Subscription-Based Law Firms
Subscription-based law firms are a new idea. These types of law firms arose within the last decade as more law firms looked to deliver increased value to discerning clients.
Subscription-based law firms use a simple model: each client pays a monthly fee and in return gets some amount of time working with an attorney, whether through phone calls, emails, or document reviews.
This model works for businesses because they pay a predictable fee and have the ability to work efficiently with an attorney.
When determining whether or not a subscription-based law firm works for your business, consider: the monthly fee, setup costs, minimum term, and what types of matters are covered. Subscription-based law firms vary in what they offer.
One thing to be very sure about is whether or not a law firm offers the subscription plan. A subscription plan not offered by a law firm is a different beast, indeed!
Legal Plans Not Offered By Law Firms
Legal plans have been around since the 1970s. Big names include LegalShield and ARAG Legal.
These plans (often offered through employers) remain popular because they give members access to legal advice for a small monthly fee. This makes them similar to subscription-based law firms (see above).
Legal plans differ from subscription-based law firms in that they are run by companies that connect members with a provider law firm in the member’s state.
The quality of the legal plan varies from state to state and depends mainly upon which law firm provides services in a given state. In one state, you might have a stellar law firm while in another, the law firm chosen may be lackluster.
So if you are going to use a legal plan that is not offered by a law firm, make sure that you know who the provider firm will be. Once you have found out who the provider firm is, take a look at their site to see if that firm or lawyer works with businesses like yours. Some firms specialize, and other firms take any matter that comes through the door – whether a partnership agreement, a landlord-tenant dispute, or a dog bite.
As a business owner, you would want a firm that focuses strictly on the needs of businesses like yours.
The quality of the lawyers in these legal plans vary, so do due diligence.
Online Filing Services
We enter dangerous territory here.
While an online filing service may seem like a good LegalZoom alternative, they have the same problems as LegalZoom. Online filing services cannot provide legal advice. Further, since they don’t follow the same ethical rules that bind lawyers, the customer’s interest comes second to that of company shareholders.
If you search for everyday business legal tasks like “company setup” or “trademark registration” or “business contracts,” you will be flooded by ads that promise to do these things for $69 or $100 or even $0(!).
There must be a catch.
The catch is the same as with LegalZoom: they will help you fill out forms, but they don’t offer advice on whether you are filling the form correctly or if there is a better way to do things. Good business owners look at the big picture when undertaking these things and will pay a little more to make sure that things are done right the first time.
Generally, online filing services attract people who haven’t fully committed to investing in their businesses. Maybe they run the companies as a hobby. Perhaps they don’t yet understand that in business, you get what you pay for. Shortcuts – especially legal shortcuts – tend to cost more in the long run.
So Which LegalZoom Alternative Do I Use?
The choice of the right LegalZoom alternative depends upon your needs. If you have a hobby business with which you don’t plan to generate revenue, you might be able to go with an online filing service. If you run an established company, the services of a traditional law firm may suit you.
However, for most businesses, the answer lies in the middle. Starting with something like a subscription-based law firm, you can begin to understand your legal needs and build a legal strategy. Since the commitment is relatively low, you can get your feet wet and see how it all works out.
In any case, we would be happy to talk with you about what LegalZoom alternative would be right for you. Just schedule a time on our calendar. It’s free!
