Is RocketLawyer.com a scam?

Question

Has anyone had experience with Rocket Lawyer? I need to form an LLC.

Rob C. · Answer

Thanks Alex for the catch in their terms and conditions, and for posting here! I'm surprised to see the biggerpockets site endorsing it in spite of this.

I am considering going with legalzoom instead in light of this. I skimmed the terms and conditions of legalzoom, and although they have similar limits of liability at least they do not appear to suggest external counsel for one's unique situation. That makes me think that at least the advice I get by setting up an appointment with an attorney included in legalzoom's service would in fact be legal advice tailored to my own situation (and therefore come along with the same kind of liability and hopefully E&O that a regular real estate attorney would). Am I wrong in that thinking?

Thanks

Rob

Alex Stanier · Answer

I realise this might now be too late, but don't use Rocket Lawyer. Their T's and C's make it clear that the advice and content you get from them is generic and not tailored to you. They specifically advise instructing a lawyer if you want advice on your own situation. But most importantly, they limit their liability to a maximum of 12 months worth of fees (if you have actually paid for the 12 months prior to needing to claim - if your claim comes to light years after using the service, their liability to you is $0!!). So you may as well draft your own legal documents from scratch for all the protection you are getting from Rocket Lawyer and save yourself the cost of joining them. Better yet, just pay a bit extra up front and get tailored, advice from a trained, insured, professional.

Lynn Currie · Answer

I have a subscription with, and use RocketLawyer, mostly for basic contracts like leases and walk-through checklists. I've been really happy with the service and particularly appreciate the step-by-step instructions and explanations while filling out the contracts. I haven't used it to create an LLC, but would use their service for this if I was doing a basic, small company setup.

Anytime I'm creating legal docs for an entity that has a substantial amount of money involved or potential liability issues (i.e. pretty much any real estate venture I'm involved in), I use a lawyer.

Lynn

Wade Sikkink · Answer

I've used Legalzoom to set up an LLC and it was easy. They try to upsell you on tons of stuff, but other than that it was a good process. Quick and affordable.

Antonio Bodley · Answer

@Sean H. I didn't say it was a scam. I am asking if it is a scam because of the complaints I read from other people who uses them said it was a scam. I just wanted to know if this is true or not.

Sean H. · Answer

@Antonio Bodley I use RocketLawyer with no issues.  Why do you think it is a scam?