If you are contemplating forming a Corporation, Limited Liability Company ("LLC"), or Partnership or are thinking about having a Will or Trust prepared, it is very important to consider the risks of the cheap, one-size-fits-all corporation, LLC, will or trust "produced" by paralegals and Legal Service companies. These "services" often tout catchy phrases about "saving money" by not using lawyers without detailing the potential long term consequences of the do-it-yourself cookie-cutter items they sell.

Every month, I receive at least one call from an individual who has used one of these type of services, and who now find himself in a precarious position. Some face huge fines for failing to comply with certain state laws the paralegal or Legal Service failed to mention, or in some cases was not even aware of. Others face potential personal responsibility and liability for losses they thought they were protected from by the "limited liability protection" generally afforded to businesses operating as a corporation or LLC. Unfortunately, merely forming a corporation or LLC will NOT provide you with that limited liability protection you sought. And still others find that the trust they paid for was worthless. Why? Because the Legal Service failed to transfer any property into the trust. The Result? Long and expensive probate, which the trust was supposed to prevent.

Such services often do more harm than good, proving the age old adage "you get what you pay for." When it comes to preparing your estate plan, forming your corporation or LLC, or dealing with other important legal issues, buy yourself peace of mind by consulting with a competent licensed lawyer who focuses on the relevant practice area involved.

If you have already enlisted the services of one of these "Paralegal" or "Legal Service" companies, have a licensed corporate, or estate, attorney review the documents and alert you to any potential problems, or short falls.

If you are still contemplating the use of a Paralegal or Legal Service because you feel you cannot afford a lawyer, seek out the help of legal aid, or at least consult with an attorney before proceeding. This initial consultation should take no more than one hour, and should cost no more than $300.00. During the consult, you can explain what you are proposing to do and ask the attorney for his or her recommendations. You might also ask what the attorney would charge to review the documents once they have been prepared. Unfortunately, the later is not the best method by which to proceed as often it will cost more to fix any problems created by the Legal Service, than it would have to go to an attorney in the first place.

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