Debate: Do you really need a lawyer for a simple LLC or is LegalZoom fine?

I keep seeing small business owners in this sub argue that you're stupid if you don't hire a lawyer to file an LLC. But I've done three LLCs through LegalZoom and one through a local attorney in Columbus. The lawyer charged me $1,200 for something LegalZoom did for $99 plus state fees. The operating agreement I got from the lawyer was basically the same boilerplate I could have found online. I know there are edge cases where you need a lawyer, like if you have partners or complicated assets. But for a single-member service business with no employees, is paying for a lawyer really necessary or is it just gatekeeping? What's your experience with this?

3 comments

3 Comments

alicehernandez1mo ago

Actually there's a small thing worth correcting here. LegalZoom and similar services don't actually file your LLC paperwork the same way a lawyer does. They basically act as a middleman that fills out forms and submits them for you, but they aren't providing legal advice or taking responsibility if something goes wrong. That $99 price tag sounds great until you realize they might not check if your business name is really available or if your specific state has weird requirements that a lawyer would catch. The lawyer charging $1,200 is partly paying for their malpractice insurance and their willingness to stand behind their work if the state rejects your filing or you get sued later. For a very simple single-member LLC with no partners or unusual business structure, LegalZoom can be fine for the filing part, but the savings come with a trade off in terms of legal protection and personal accountability.

milacraig1mo ago

Exactly, that's spot on. I used LegalZoom for my first LLC and thought I was being smart saving money. Then six months later I found out they never checked if my business name was actually available in my state. Some random company in another state had a similar name and I got a cease and desist letter. Cost me way more than $1,200 to fix that mess with a real lawyer. The lawyer I hired for my second LLC caught that my operating agreement had a clause that would've been a nightmare for taxes. You really do get what you pay for with this stuff.

lindal131mo ago

Got a friend who used LegalZoom for his LLC. State mailed the paperwork back three times for little mistakes. He finally paid a paralegal $200 to fix it. Not exactly saving money there.