Legal Zoom has done such a good job of marketing that it seems like everyone knows what they are and what they do.  That’s no small feat when you’re talking about something as decidedly non-sexy as providing legal forms for those who’d prefer a “do it yourself” solution to retaining a lawyer.

What those of us who haven’t used Legal Zoom don’t know is whether we’re better off relying upon their forms sans attorney or if we would do ourselves a favor by ponying up for someone who managed to suffer through the three years necessary to obtain a JD degree and the subsequent bar exam.  We know that the service often gets good reviews, but may want to think beyond those glowing reports.

Let’s consider a few different factors that may determine whether LZ is the right way to go.

Initial Price Tag: Attorney rates vary based upon your location, the issue at hand and the attorney with whom you’re speaking.  There are cut-rate lawyers who don’t do a very good job.  There are bargain lawyers who do great work while keeping their price tags surprisingly low.  There are big-money options who crappy work and expensive professionals who do outstanding work for their clients.  It’s a mixed bag and that makes it hard to generalize about attorney rates.

However, it’s really hard to imagine that you’ll find it cheaper to pay for an attorney to work with you than it is to use a service like Legal Zoom.  I found one attorney who can’t believe he’s charging any more than what LZ charges for a will, but when you find out that LZ’s basic will package runs less than $70, I’m guessing he is charging more.

With one option, you’re paying a professional for his or her time.  You’re bearing the expense of his or her education and the fact that he or she is operating in a regulated field and has demonstrated specific competencies.  With the other, you’re getting fairly standardized form work completed with some basic non-attorney assistance.

Obviously, Legal Zoom is the cheaper option.

Quality: Now, we’re getting to the bigger issue.  If you’re dealing with an issue that has you even thinking about hiring an attorney, it’s probably something important.  That means you’re going to need to decide whether to put faith in a company that tells you over and over again that they are not attorneys and are not providing legal advice.

Sometimes, that may not be that big of a deal.  If you want to put together a relatively simple will for limited assets instead of dying intestate, one of those Legal Zoom packages may be just what you need.  I know that many attorneys have a vested interested in arguing otherwise, but there are situations that traditionally call for any attorney that one can competently handle without paying that retainer.

However, it gets stickier when you’re considering something more complicated.  Take incorporation, for instance.  Many Legal Zoom customers undoubtedly take advantage of their relatively cheap packages of forms designed to facilitate that process.  However, professionals in the field have noted that Legal Zoom doesn’t provide all of the paperwork necessary for many start-ups to handle the incorporation process and that those vehemently committed to “do it yourself” incorporation may be better served by calling their Secretary of State’s office for instruction.

There are also strong arguments regarding deficiencies in Legal Zoom’s approach to patent and trademark law and their forms, as well.

Some of the criticisms may be a byproduct of attorney’s fearing that their losing a business stranglehold in some areas.  Some of the attorney critiques are a little harsh.  However, the actual arguments presented are fairly compelling.  I know enough lawyers to stop short of believing they’re all nefarious evildoers in whom we can place little or no trust.  Some are greedheads, but others really do want people to get things done the right way.

That’s always going to be a question mark when you’re dealing with a company like LZ.  Whether the quality is there is an open question based on innumerable variable and it’s something you need to think about very carefully in light of your individual circumstances.

Actual Price Tag: You can compare $50 worth of forms to $1,000 in attorney fees and say that Legal Zoom is a cheaper option.  If those $50 in forms fail to do the job or if they actual backfire on you due to your own inability to correctly utilize them or to complete them, what are they really worth?  What’s their value if LZ doesn’t quite “have it right?”  On the other hand, how do you value the sense of security that comes with having a trained professional assist you with the details of an important personal or business matter?  Those questions must be considered when you’re trying to decide if Legal Zoom and its ilk are true bargains.

Personally, I’m more comfortable spending the money to deal with a qualified professional.  I don’t necessarily fully trust the forms and the guidance Legal Zoom supplies and I wouldn’t always trust myself to make the most advantageous legal decisions.  I’ll pay the attorney.  What about you?