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’?

Loving this article! Finally, demand driving creation of non-lawyer legal services! It's time to breaking up lawyer's monopoly on the legal services market. 

​Clients are demanding [lawyers need to be creative] as other professionals. Use paralegals, legal technicians, and document preparers plus automation to help reduce the costs and create affordable fees. - MARY E. JUETTEN
​
Read more: https://abovethelaw.com/2019/01/are-some-law-offices-just-like-the-mall

Effective 09/27/2018, Rule 3 4.00.09 Filing through Fax Filing Agency, of the Local Rules for the Superior Court, County of El Dorado, is hereby amended as set forth below:

4.00.09 FILING THROUGH FAX FILING AGENCY
The Superior Court of California, County of El Dorado, accepts [electronic] fax filing in civil, probate, and family law departments by facsimile transmission pursuant to California Rules of Court, rules 2.300 through 2.306.

Documents received by 4:00 p.m. shall be filed with that day’s date. All documents received after 4:00 p.m. are deemed to have occurred on the next business day. The Superior Court of California, County of El Dorado, does not accept direct facsimile filing of documents except as authorized in rule 4.00.08. Refer to the court’s website for online electronic fax filing instructions at www.eldoradocourt.org. (Revised January 1, 2019)

• Administrative Order Re: Local Rule .00.09 
  • http://www.eldoradocourt.org/administration/pressdocs/20180927-faxfiling.pdf
• ​Electronic Fax Filing Instructions
  • http://www.eldoradocourt.org/documents/pdf/FaxFilingOnline.pdf
• Electronic Fax Filing Submission Page (eFile Submission)
  • https://www.ncourt.com/x-press/x-onlinepayments.aspx?juris=E024B4AC-ACC8-4FA0-846D-FC25DC6EF890&setuptype=upload
• Fee $1.00 per Page

Effective January 1, 2019, ​Legal Document Assistants (LDAs) and Unlawful Detainer Assistants (UDAs) are required to complete 15 hours of continuing legal education MCLE courses during the two-year period preceding renewal. Legal ethics education is no longer required as part of the the 15 hours MCLE requirement. Business Professions Code §6402 was amended by Stats. 2018, Ch. 776, Sec. 2. (AB 3250)
Source: https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=6402.2.&lawCode=BPC

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. ​

"[Limited License Legal Technicians] (LLTs) are an important piece of [closing the access to justice gap] and it’s the think[ing] around them, that we have been innovative enough to create a tier that never existed before in the history of law in this country. And there’s probably more jobs, descriptions, opportunities for us to create professionals, preferably regulated, as part of our large profession.

States with Non-Attorney Professionals:
California
Legal Document Assistants
Unlawful Detainer Assistants
Bankruptcy Petition Preparer
Immigration Consultants

Florida
Legal Document Preparers

Arizona
Certified Legal Document Preparer

More info can be found on the NFPA website, where the association provides a comprehensive list of Paralegal and Non-Lawyer Regulation by State:
https://www.paralegals.org/files/2017-08-24%20Regulation%20by%20State%20FINAL.pd

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:

• Legal Document Assistant (LDA) Name
• Business Name (if using a dba)
• Business Address
• Telephone Number
• ​County Registration Number
• County of Registration 

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.