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Are you well organized, detail oriented, self directed? Do you enjoys working with the public? Then becoming an LDA might be right for you. Do you offer Paralegal services directly to the public? Do you fill out documents for compensation? If you offer or are contemplating providing document preparation services directly to the public for compensation without the supervision of an attorney, you may be required to register as a Legal Document Assistant, according to California Business & Professions Code § 6400, et seq. Bus & Professions Code § 6400(c)(1) Any person who “provides, or assists in providing, or offers to provide, or offers to assist in providing, for compensation, any self-help service to a member of the public who is representing himself or herself in a legal matter, or who holds himself or herself out as someone who offers that service or has that authority. This paragraph does not apply to any individual whose assistance consists merely of secretarial or receptionist services." Making that decision to walk down this career pathway requires more than just adherence to BPC § 6400, et seq., it requires a commitment and a belief in oneself to take on challenges of not only the legal industry, but also working with California courts that are severely underfunded. Chronic underfunding of the courts unfairly affects members of the public seeking their day in court. Trial courts receive a little more than a penny for every general fund tax dollar, and in the past the judicial branch has had funds swept to support the state budget during times of crisis. Now the courts have an ongoing funding crisis, new laws are added annually, there are more complex cases, but there is no stable funding solution for the judicial branch and the people we all serve. - Chief Justice Tani G. Cantil-Sakauye  Before the judicial branch implemented the Workload-based Allocation and Funding Methodology (2013-14, left) some trial courts were underfunded by as much as 60%. By 2017-18 (right), the new formula had helped equalize funding gaps. SOURCE: The Trial Court Funding Formula, Explained by Merrill Balassone In the past year, 55 percent of Californians at all income levels experienced at least one civil legal problem in their household, yet nearly 70 percent of them received no legal assistance. Fewer than 1 in 3 Californians sought legal assistance to address their problems. - California Justice Gap Study: Measuring the Unmet Civil Legal Needs of Californians.  SOURCE: California Justice Gap Study Executive Report The Legal Document Assistant (LDA) profession was bore from community based legal advocacy. In fact, the LDA profession is an innovation in the legal services industry which enhances the delivery of, and access to, legal services. In some communities throughout California LDAs are the only legal resource. Becoming an LDA is privilege which should not be taken lightly. We serve members of the public who aren't able to hire a lawyer, while alleviating the demand on limited court resources. Legal Document Assistants are an affordable non-attorney professional alternative for members of the public facing a legal problems, but can't afford to hire an attorney.  SOURCE: California Justice Gap Study Executive Report The Justice Gap Study Executive Report also tells us the gap in knowledge is the one of the key issues in access to justice. As an LDA One of the biggest challenges of working with the self-representing litigants, is they do not realize their questions are legal questions which can or should only be answered by an attorney. While we can provide litigants self-help resources or sure the litigant an research the answer themselves, but legal research is a art in of of itself which is a two semester program taught in a paralegal program. This is a systemic civics issue that transcendent socio-economic condition. How does the constitutional right to redress serve the people if they cannot navigate the legal system without paying thousands in attorney fees? Fortunately, the California State Bar is presently working on address this very issues.
The Legal Document Assistant profession, while challenging, can be very rewarding. LDAs close the legal resource gap that often exists in our judicial system. Even if we can't provide legal advice, at minimum we help pro se litigants identify that they have a legal issue. We provide affordable legal services bridging accessibility. Are you ready to become part of the legal justice solution?
Effective January 1, 2016. BPC §6402. our registration requirement has changed. We are no longer required to register in each count where we perform business. We can now offer business in ANY county throughout California and are only required to register in the county in which our principal place of business is located, and in which we maintain a branch office. "A legal document assistant or unlawful detainer assistant shall be registered pursuant to this chapter by the county clerk in the county in which their principal place of business is located, and in which they maintain a branch office..." To date, the Department of Consumer Affairs has yet to update our statutory contract to conform with BPC §6402. Current Contract 7. As required by law, I have filed a bond or made a cash deposit and have registered as a legal document assistant in each county where I will perform services on your behalf. Proposed Revision 7. As required by law, I have filed a bond or made a cash deposit and have registered as a legal document assistant in the county where my principal place of business is located, and in any counties in which this business maintains a branch office. https://govt.westlaw.com/calregs/Document/I3356854BB1E74FDB8181ECEA71C00C39?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)  What’s your split? The biggest motivator for going into business for yourself is getting 100% of sales. The flip side is you also take 100% of the risk. Wouldn’t it be great to be able to have an attorney by your side along the way?
By investing in a LegalShield Small Business Plan I make calculated business decisions avoiding unnecessary risk. Custom business legal plans starting at $39.00 per month give you access to a huge variety of legal services to help you rest easy knowing you’re protected. Speak to a lawyer as often as you’d like, get contracts & documents reviewed before you sign and much more. Protect and grow your business with a LegalShield Small Business Plan. How best to protect your notary business from vexatious litigants and unscrupulous individuals looking to make a quick buck from our Notary bonds?
What many Notaries do not understand is that the bond only protects the public, not the notary. The bonding agency have to interest in denying claims against our bonds. Afterall, any claims paid out on the notary's behalf can and will be recuperated from the notary. I don’t know about anyone else but I certainly don’t have $25k to burn. This is why Errors and Omissions Insurance (E&O) is SO important. E&O Insurance protects the notary against claims. That said... not all E&O policies are created equal. Read and understanding the arduous clauses written in legalese can be frustrating for anyone. As a benefit of the LegalShield Small Business Plan members can submit insurance policies to an attorneys specializes in insurance law to review before signing! It also helps that LegalShield offers Trial Defense benefits. It would be great if LSS counseled Notaries on how to limit liability where bonds and insurance policies may fall short. Are you struggling to pay your commercial lease? Put your LegalShield Small Business Plan to work for you! Have a lawyer review your commercial lease for a Force Majeure Clause then guide you how to navigate rent negotiations amid the COVID-19 epidemic. Is your landlord unresponsive? Have a lawyer write a letter on your behalf. Benefits include: LEGAL CONSULTATIONS
LETTERS & CALLS
DOCUMENTS & CONTRACTS
TRIAL DEFENSE
 Enroll for a LegalShield Small Business PlanAll Legal Document Assistant-Client communications should contain the following:
CA BPC 6408
CA PBC 6408.5 I am not a lawyer. I cannot give legal advice. [YOUR BUSINESS NAME] is not a law firm. I can only provide self-help services at your specific direction. Well... there are a few ways to look at it. You can set your prices based on:
Personally, I do a little of everything. We have lengthy discussions about pricing in chapter meetings. Most LDAs find a niche then specialize in it or stick to one area of practice. Everyone is different. Not all motions are created equally.
Pricing is not set in stone. You can always raise their prices annually. The average fee is $450 for a Request for Order (Motion) and goes up depending on case complexity. You can always run a promotion to test the market too. Test the market then adapt.  The State Bar of California Task Force on Access Through Innovation of Legal Services (ATILS) January 8, 2020 - Recommendations Issued for Public Comment Concerning Exceptions to the Unauthorized Practice of Law, including Consideration of Concepts for Regulation. These are just first round if recommendations. The proposed guidelines have may revisions to come and hurdles to jump the fist of which will be published March of 2020. The ATILS Task Force is open to public comment. The fact that the new Independent Paralegal category will eliminate LDAs either in direct competition or via osmosis is inevitable. I rather it be the latter. It is my humble opinion that Legal Document Assistants lobby for a grandfather clause for inclusion if and when this new category takes effect. THE RECOMMENDATIONS:
"In an effort to streamline and stay in alignment with current regulatory frameworks, the task force does not recommend developing a brand new certification program or licensing model but rather to take advantage of an existing educational program; specifically the paralegal... This recommendation seeks to create an additional category of paralegal called an “Independent Paralegal” who would be authorized to provide [limited] legal services in a specific area or areas of practice in which they are registered without attorney supervision pending compliance with specific educational, experience, ethical and certification requirements.” ATILS Task Force proposed guidelines are as follows:An IP would be a paralegal who:
Source: 01/08/2020 B.1. Recommendations Issued for Public Comment Concerning Exceptions to the Unauthorized Practice of Law, including Consideration of Concepts for Regulation http://board.calbar.ca.gov/docs/agendaItem/Public/agendaitem1000025310.pdf
Affording clients the option to apply for monthly payment plans is a great way to ensure affordability and access to legal services. Legal Document Preparers is launching Square Installments as a convenient feature for clients who need a little more time to pay and response timely to pending actions.
 New and existing Legal Document Assistant (LDA) business owners ask which entity their business should be. According to the California Secretary of State Articles of Organization Form instructions service-based businesses cannot operate via LLC unless there is an affirmative clause in the California Business Professions Code authorizing the subject profession with the ability to do so.
No such clause exists under the LDA Business Professions Code (see BPC § 6400 et seq.) Because the BPC does not contain authorizing clause for the LDA profession to operate via LLC therefore, LDAs are limited to incorporation or sole proprietorship. In fact, professional service providers such as Independent Paralegals, LDAs cannot form an LLC. According to CA CORP §17701.04.: (e) Nothing in this title shall be construed to permit a domestic or foreign limited liability company to render professional services, as defined in subdivision (a) of Section 13401 and in Section 13401.3, in this state. 13401. As used in this part: (a) “Professional services” means any type of professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, or the Osteopathic Act. 13401.3. As used in this part, “professional services” also means any type of professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by the Yacht and Ship Brokers Act (Article 2 (commencing with Section 700) of Chapter 5 of Division 3 of the Harbors and Navigation Code). That said, many Paralegal Service Providers and a handful of Legal Document Assistants have structure their businesses as LLCs. Whether the LLC limited liability protections will be tested later when invocation become necessary is unknown. Would a court pierce the LLC veil you asked? Well… do you feel luck? Well do ya’?
While Bus & Professions Code § 6400, et seq. goes into great detail about the role and responsibilities of an LDA, what it does not tell you is the business aspect of becoming an LDA. Self-Employment is not for everyone.
In addition to the technical portion of the business, there is also a compliance proration such as federal, state, and local business licensing requirements that your business must comply with. Then there is the financial aspect. Are you ready to prepare financial statements like a Profit & Loss or how about a Balance Sheet? Sure you can contract out the accounting portion, but hiring a professional accountant would increase start up costs and monthly overhead. Don't forget marketing! Building a lead tunnel for which prospective client to follow so when they get to you they are ready to close the deal! Oh, by the way you'll need client management software, and document drafting software for pleadings which may require thousands of initial investment depending on your business needs. What will the day to day operations in your business be like? What will clients experience when they interface with your business, i.e. client flow. Have I scared you off yet? No, good! Then becoming an LDA may be right for you after all. The best place to start is with building your business is with the support of the Small Business Administration. Having a business plan with 3/5/10 years goals is important. This is the framework your business will follow. It's really comes down to the entrepreneurial mindset. Look, I know I can be difficult, but you can do it. To help keep me motivated and on track I surround myself with like minded professionals by network with fellow entrepreneurs and listening to podcasts such as Side Hustle Pro. Payment Processing
Appointments/Scheduling
Customer Relationship Management (CRM)
Advertising/Marketing
Business Telephone Service
Website Professional Business Address/Virtual Office
Are you well organized, detail oriented, self-directed? Do you enjoys working with the public? Eh... me neither but that didn't stop me from becoming an LDA and I love it! If you enjoy preparing documents and you're good at it, this might be right for you. Being comfortable with the unknown and having the skill to research it really helps. There are many challenges that come with running a business. Being a trained legal researcher, as many of us Paralegals are, helps.
On a more serious note, are offering "Paralegal Services" directly to the public? Do you fill out documents for compensation? If you offer or are contemplating providing document preparation services directly to the public for compensation without the supervision of an attorney, you may be required to register as a Legal Document Assistant, according to California Business & Professions Code § 6400, et seq. HERE IS WHAT THE LAW SAYS: Bus & Professions Code § 6400(c)(1) Any person who “provides, or assists in providing, or offers to provide, or offers to assist in providing, for compensation, any self-help service to a member of the public who is representing himself or herself in a legal matter, or who holds himself or herself out as someone who offers that service or has that authority. This paragraph does not apply to any individual whose assistance consists merely of secretarial or receptionist services." Making that decision to walk down this career pathway requires more than just adherence to BPC section 6400, et seq., it requires a commitment and a belief in oneself to take on challenges of not only the legal industry, but also working with California courts that are severely underfunded. This challenge, however can be very rewarding. Legal Document Assistants close the legal resource gap that often exists in our judicial system. The Legal Document Assistant profession was bore from community based legal advocacy. In fact, the LDA profession is an innovation in the legal services industry which enhances the delivery of, and access to, legal services. In some communities throughout California LDAs are the only legal resource. Becoming an LDA is privilege which should not be taken lightly. We serve members of the public who aren't able to hire a lawyer, while alleviating the demand on limited court resources. Legal Document Assistants are an affordable non-attorney professional alternative for members of the public facing a legal problems, but can't afford to hire an attorney. Legal Document Assistants (LDAs) are required to include their registration information on any solicitation or advertisement, and on any printed papers or documents prepared or used by the LDA. This includes contracts, letterhead, business cards, correspondence, documents, forms, claims, petitions, checks, receipts, and pleadings. THE LDA STAMP SHOULD INCLUDE:
Effective January 1, 2016, The LDA registration expiration date is only required on on the written contract, as well as on any Internet Web site maintained by the registrant, and in any solicitation, advertisement, document, or correspondence prepared or used by the LDA in electronic form. The idea behind limiting the LDA registration expiration date to electronic forms, aside from reducing the cost of printing, it also eliminates waste. Every two years LDAs had to print new business cards or other pre-printed materials and had to purchase a new LDA Stamp. Removing the registration expiration requirement from printed materials is better business not only for the LDA, but also the environment. HERE IS WHAT THE LAW SAYS: Bus & Professions Code §6408 The registrant’s name, business address, telephone number, registration number, and county of registration shall appear in any solicitation or advertisement, and on any printed papers or documents prepared or used by the registrant, including, but not limited to, contracts, letterhead, business cards, correspondence, documents, forms, claims, petitions, checks, receipts, and pleadings. The registrant’s name, business address, telephone number, registration number, expiration date of the registration, and county of registration shall appear on the written contract required to be provided to a client pursuant to Section 6410, as well as on any Internet Web site maintained by the registrant, and in any solicitation, advertisement, document, or correspondence prepared or used by the registrant in electronic form. |
Author: Angela GrijalvaJust another entrepreneur "Tryin' to make a dollar out of fifteen cent," and making a difference. Categories
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NON-ATTORNEY DISCLOSURE:
Prepared Legal Corp. (PLC) is not a law firm. Angela Grijalva is not a lawyer and cannot give legal advice. Neither PLC nor Angela Grijalva can represent you in court. PLC can provide document preparation services at the client's direction. Services provided by PLC are not substitute for the advise of a lawyer. If you have questions regarding the section of appropriate forms, you should seek the advice of a lawyer. |
PREPARED LEGAL CORPORATION
LEGAL DOCUMENT PREPARERS Ph: (916) 750-0073 Fx: (833) 750-PREP 180 Promenade Circle, Suite 300 Sacramento, CA 95834 _______________________________ Sacramento County LDA Reg. 2020-03 Exp. 08/04/2024 _______________________________ A Minority Woman-Owned Business |
DIVULGACIÓN DE NO ABOGADOS:
Prepared Legal Corp. (PLC) no es un bufete de abogados. Angela Grijalva no es abogada y no puede dar consejos legales. Ni PLC ni Angela Grijalva pueden representarlo en la corte. PLC puede proporcionar servicios de preparación de documentos a nombre del cliente. Los servicios provistos por PLC no sustituyen el asesoramiento de un abogado. Si tiene preguntas con respecto a la sección de formularios apropiados, debe consultar un abogado . |
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Disclaimer: The information presented is intended to convey general information only and not to provide legal advice or opinions. Communication of information should not be construed as, and should not be relied upon for, legal or tax advice in any particular circumstance or fact situation. It is not intended to serve as legal advice. You should not rely upon any information discussed or presented here without first seeking legal advice from an attorney licensed to practice law in your jurisdiction.
Copyright 2020 Prepared Legal Corporation. Copyright 2016 Legal Document Preparers. All rights reserved.
Copyright 2020 Prepared Legal Corporation. Copyright 2016 Legal Document Preparers. All rights reserved.