The Risks of Using Legal Zoom for Contract Drafting

In the age of digital solutions, many small business owners and entrepreneurs in Atlanta turn to online platforms like Legal Zoom for their legal needs. While these services offer convenience and affordability, they come with significant risks, particularly when it comes to contract drafting. The Risks of Using Legal Zoom for Contract Drafting can manifest in gray areas, loopholes, conflicting terms, missing terms, and more.

Why Legal Zoom May Not Be the Best Choice for Contract Drafting

The Risks of Using Legal Zoom for Contract Drafting: Absence of Legal Advice

Legal Zoom offers a range of legal documents and contract templates. However, their Terms & Conditions clearly state:

"At no time do we review your answers for legal sufficiency, draw legal conclusions, provide legal advice, opinions or recommendations about your legal rights, remedies, defenses, options, selection of forms, or strategies, or apply the law to the facts of your particular situation. LegalZoom is not a law firm and may not perform services performed by an attorney. LegalZoom, its Services, and its forms or templates are not a substitute for the advice or services of an attorney."

In essence, Legal Zoom does not provide personalized legal advice. This limitation can be detrimental for small business owners who require customized contracts that account for their unique business needs and legal circumstances.

One Size Does Not Fit All

Legal contracts need to be tailored to the specific needs of your business. Generic templates may not cover essential clauses or provisions pertinent to your situation. For instance:

• Operating Agreements should outline the distribution of profits, roles and responsibilities of members, and procedures for resolving disputes.

• Services Contracts need to specify terms of delivery, payment schedules, and conditions under which the contract can be terminated.

Using a one-size-fits-all template could leave critical gaps, exposing your business to unnecessary risks.

Lack of Comprehensive Legal Review

Without a thorough review by a qualified attorney, you might miss important legal nuances. Legal Zoom’s disclaimers make it clear that they do not ensure the legal sufficiency of your documents. This lack of oversight can lead to legally binding agreements that don’t protect your interests, or worse, result in costly legal disputes down the line.

Real-World Example

Consider the case of Client A, an entrepreneur who used Legal Zoom to create an LLC operating agreement. The template failed to address key issues such as:

• Member Distributions: There was no clear method for determining how profits would be distributed among the members.

• Member Exit Strategy: The agreement lacked provisions for buying out a disgruntled member.

The result? Client A found themselves permanently tied to a business partner they could no longer work with. The unresolved tensions led to the business filing for bankruptcy.

Had Client A consulted with a qualified business attorney, these issues could have been anticipated and mitigated through a well-drafted, customized operating agreement.

Protect Your Business with Professional Legal Advice

While Legal Zoom and similar services offer quick and affordable solutions, the risks often outweigh the benefits. For Atlanta entrepreneurs and small business owners, investing in professional legal advice can save you from costly mistakes and legal troubles in the future.

Benefits of Hiring a Business Lawyer

• Personalized Service: Tailored contracts that meet the unique needs of your business.

• Expertise: Insights and advice from someone who understands the complexities of business law.

• Risk Mitigation: Comprehensive legal reviews to ensure all aspects of your contracts are covered.

Conclusion

When it comes to the legal foundation of your business, shortcuts can be costly. Avoid the pitfalls of generic legal services like Legal Zoom and consult with a professional business lawyer who can provide the expertise and personalized service you need.

Are you ready to ensure your business is legally protected? Contact us today to schedule a consultation and safeguard your business’s future.