How to Use Online Legal Advice for Starting Your Small Business

Starting a small business is an exciting and challenging venture that involves various decisions, including legal ones. Navigating the legal requirements to establish and operate your business properly can be daunting, especially if you lack legal expertise.

However, the rise of online legal advice platforms has made it easier and more affordable for entrepreneurs to manage their legal needs, providing them with access to legal guidance, document templates, and essential services without the high costs typically associated with traditional law firms.

In this article, we will explore how you can effectively use online legal advice to start your small business. We’ll cover the benefits of using online platforms, common legal steps for launching a business, and how these services can help streamline the process of getting your business up and running.

The Benefits of Using Online Legal Advice

Before diving into the specifics of how online legal advice can help you start your business, it's important to understand the key benefits of using these platforms.

Cost-Effective: One of the biggest advantages of online legal services is affordability. Traditional law firms often charge high hourly rates, which may be out of reach for small business owners or startups with limited budgets. Online platforms often offer flat fees, subscription models, or pay-per-use pricing, making legal advice and services more accessible for new business owners.

Convenience and Accessibility: Online legal services can be accessed from anywhere, at any time. You can get legal guidance and access legal documents without leaving your home or office. This convenience is especially valuable for small business owners who need to focus on running their business rather than spending hours in a lawyer’s office.

Speed: Online platforms allow you to quickly find answers to legal questions and obtain necessary documents. Whether you're drafting a contract, forming a company, or registering for trademarks, the process is often faster when done online compared to the traditional legal route.

User-Friendly Resources: Many online legal services provide easy-to-use tools, step-by-step guides, and templates that simplify the process. Whether you’re creating a business structure or reviewing contracts, these resources help you understand legal requirements and procedures.

Steps for Using Online Legal Advice When Starting a Small Business

There are several key legal steps involved in starting a small business. Here’s how you can use online legal services to handle each of them efficiently.

a. Choosing Your Business Structure

The first step in starting a business is choosing the right legal structure. The structure you choose affects your business taxes, liability, and how you will operate. Common options include:

Sole Proprietorship – The simplest structure, where you are the sole owner and have full control over the business.

Partnership – A business structure involving two or more owners.

Limited Liability Company (LLC) – Provides liability protection for business owners while offering flexibility in taxation.

Corporation – A more complex structure offering additional protection and benefits for larger businesses or those seeking investors.

Online legal platforms like LegalZoom or Rocket Lawyer can help you determine which structure is best for your business. Many of these services offer online questionnaires that take you through the options and explain the pros and cons of each structure. They also provide templates and guidance for registering your chosen structure with the state, making it a simple, straightforward process.

b. Registering Your Business

Once you’ve chosen your business structure, the next step is to officially register your business with the appropriate state or local authorities. This typically involves filing with the Secretary of State, obtaining a federal Employer Identification Number (EIN), and potentially applying for any necessary licenses or permits.

Online platforms can guide you through the process of filing the necessary documents and forms to establish your business entity. For instance, you can use these services to:

File Articles of Incorporation or Organization for your LLC or corporation.

Apply for an EIN online through the IRS website, which is required for tax purposes, hiring employees, and opening a business bank account.

Obtain State and Local Business Licenses: Many online legal services offer tools to help you determine the licenses or permits required for your specific business, depending on your location and industry.

c. Drafting and Reviewing Contracts

Once your business is legally established, you’ll likely need to enter into various contracts, such as leases, vendor agreements, client contracts, and employee agreements. Having legally sound contracts is essential to protecting your business interests and avoiding disputes.

Online legal services provide ready-to-use contract templates for various business needs. These templates are customizable, so you can tailor them to suit your specific situation. For example, if you’re hiring employees, you can access templates for employment contracts that clearly outline job duties, pay, and legal obligations.

Some services even offer contract review options, where an attorney will review the contract you’ve drafted to ensure it complies with the law and protects your interests. This service is more affordable than hiring an attorney to draft a contract from scratch.

d. Protecting Intellectual Property

As a small business owner, protecting your intellectual property (IP) is crucial to safeguarding your ideas, branding, and products. Intellectual property includes patents, trademarks, copyrights, and trade secrets. Filing for IP protection can be expensive and time-consuming, but online legal services can make the process easier and more affordable.

For example, you can use online platforms to:

Trademark Your Business Name or Logo: Many online services offer an affordable way to file for trademark protection for your brand name, logo, or slogan, helping you secure exclusive rights to your business identity.

File for Copyrights: If you’ve created original works (such as websites, logos, or marketing materials), you can use online platforms to file for copyright protection.

Patent Applications: While patent applications can be complex, some online legal services provide tools to help you understand the patent process and begin filing your application.

By using online services, you can protect your IP without paying the high costs typically associated with intellectual property attorneys.

Conclusion

Online legal advice has transformed the way small business owners can manage their legal needs, offering a more affordable, accessible, and efficient way to navigate the complexities of starting and running a business. From choosing the right business structure to protecting intellectual property and ensuring tax compliance, online platforms provide the tools and resources you need to handle key legal steps with confidence.