📺 Stream EntrepreneurTV for Free 📺

Before You Use DIY Legal Sites, Consider These Risks Before you add 'amateur attorney' to your job description, it's important to take a step back and consider if a DIY legal approach is really best for your business.

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

It's almost scary to think about all the things you can do online today: contract babysitters, find a date and order about anything under the sun, to name a few. But just because you can do it online doesn't mean you should, especially when using do-it-yourself legal websites to maneuver your company's legal needs.

While there are a number of them out there, when it comes to these click-download-and-print legal forms, there's no denying that the convenience is excellent and the price is good. But before you add "amateur attorney" to your job description, it's important to take a step back and consider if a DIY legal approach is really best for your business.

Related: What to Consider When Deciding Between Forming a Sole Proprietorship or LLC

You get what you pay for

To the untrained eye, most business transactions can seem redundantly identical -- just a matter of pushing the right papers in front of the right eyes. But it's misguided to assume that one legal form can fit the wide scope of diversity that exists within all companies. Every business is guided by unique goals, leaders and circumstances that have different needs and characteristics.

Yet, online legal form websites offer documents designed for the masses -- meaning your documents that are intended to protect some of your most essential business components are held together by a fill-in-the-blank, best-effort document with no clauses, amendments or customized language to mitigate your company's specific needs.

Perhaps the worst part of generic forms is they create a false sense of security for business owners.

Related: 5 Legal Steps to Take to Shutter Your Business

What you don't know can hurt you

With any legal process, details are paramount. Even the smallest omission can invalidate a document or severely cost you time, penalties and other issues. And if you don't know what you're looking for, you won't know how to prevent small but deadly mistakes within your document.

As an illustration, many generic form contracts omit essential hold harmless and indemnification provisions (or allocate responsibility for third-party claim), the result of which can severely tilt the scales of liability out of your business's favor. An employment contract could include an overly broad non-compete clause, making it unenforceable when you need it. You could also miss jurisdictional compliance relating to issues like interest rates, which could make your entire business practice illegal and potentially derail your company's entire future.

A lawyer's thoughts are worth a lot more than a penny

If you aren't qualified to properly vet your legal work, don't be lured by the convenience of clicks and cheap rates to do it yourself. These websites even affirm they are not a substitute for a licensed attorney.

Lawyers well versed in the complexities of the law are really the only ones who can guide you through a legal process and ensure your company is as protected by the letter of the law as it can be. Also, by knowing what to look for, lawyers can avoid unnecessary hurdles and keep potential issues from ever occurring, thus keeping your legal bill contained to what you're actually paying for -- the solution, not the problem.

And since lawyers exist in the flesh, not just in cyberspace, you can initiate continued working relationships. That means when other legal needs come your way, your attorney already has an in-depth understanding of what your company does, how it operates, its long-term goals and potential obstacles.

Business revolves around weighing risk and reward. When dealing with something as perilous as the law, the potential risk is too great to bear to not apply your most thorough due diligence. Don't rely on digital 1s and 0s and an ink-jet printer to handle it for you.

Related: Non-Disclosures Can Protect Your Idea, or Destroy It

Autumn Gentry and Keith Dennen

Attorneys at Dickinson Wright, PLLC,

Autumn Gentry and Keith Dennen are member attorneys with the Nashville office of Dickinson Wright, PLLC, a Detroit-based full-service law firm with international offices. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

Most People Have No Business Starting a Business. Here's What to Consider Before You Become an Entrepreneur

You need to find the right business opportunity at the right time and take the right steps to beat the odds.

Leadership

AI vs. Humanity — Why Humans Will Always Win in Content Creation

With the proliferation and integration of AI across organizations and business units, PR and marketing professionals may be tempted to lean into this new technology more than recommended.

Growing a Business

Who You Hire Matters — Here's How to Form a Team That's Built to Last

Among the many challenges related to managing a small business, hiring a quality team of employees is one of the most important. Check out this list of tips and best practices to find the best people for your business.

Leadership

This Leadership Technique is the Secret to Optimal Team Performance

Through my experience in business, I've found one particular leadership technique that works better than others.

Management

7 Ways You Can Use AI to 10x Your Leadership Skills

While technology can boost individual efficiency and effectiveness, it's essential to balance their use with human intuition and creativity to avoid losing personal connection and to optimize workplace satisfaction.

Business News

Passengers Are Now Entitled to a Full Cash Refund for Canceled Flights, 'Significant' Delays

The U.S. Department of Transportation announced new rules for commercial passengers on Wednesday.