Buyer beware: the possible pitfalls of using online legal documents.

• Author: Kinder, Peri
• Position: EntrepreneurEdge

After investing countless hours in your business, guaranteeing your services, products and business practices are superb, why would you use a cheap legal document to protect your assets?

The popularity of online legal document sites has skyrocketed over the last few years, with companies like FindLaw and LegalZoom leading the way. A quick Google search provides access to all kinds of legal documents to be used for personal or business situations, but with so much at stake it might not be a good idea to draft important papers without legal advice.

Unforeseen consequences

Attorney Jaelynn Jenkins, with Fetzer Simonsen Booth Jenkins, thought she'd give it a try and purchased a basic will online for $69. On the plus side, it was affordable and convenient, but that's where the accolades end. "The site had lots of legal terms that are not defined," she says. "Before law school, I wouldn't have known any of this terminology."

The inability to decipher legal terms can lead to an incorrect or invalid document. Even a small misunderstanding could have unforeseen consequences that could make your simple, online document a major nightmare. Jenkins says most online sites don't have attorneys reviewing the documents. While they might have a person checking the data entry for misspellings, no one with a legal background reviews the document itself.

In fact, most online document sites have disclaimers that state the company cannot provide legal advice, is not a law firm, is prohibited from providing any recommendation regarding legal rights and is not permitted to practice law. This allows potential litigious issues to fall through the cracks.

Custom fit

Jenkins says buying an online legal form is like purchasing a jacket off the rack. It might fit OK in some places, but the shoulders might be too big or the sleeves too short. By hiring an experienced tailor, the jacket can be custom-made to fit perfectly.

"Getting something mass produced isn't going to fit your needs," she says. "Maybe start out with a simple document that you can update later. Then you can review it and get something tailor-made for your business."

Using online forms as a starting point could be a useful way to begin the conversation. Maybe you're leaving for a vacation to Belize and want some type of will in place. An online document might handle that requirement until you can create a thorough will with the counsel of an attorney that covers every situation.

Business owners run into...