Unpopular opinion: DIY legal templates are fine for some things but dangerous for others

I used to think I could just download a free operating agreement off the internet for my small side business. That worked okay for about a year until I tried to use it to bring on a partner. My buddy who runs a little coffee shop in Denver tried the same thing and ended up in a dispute over profit splits because the template didn't cover how to handle a partner leaving. Now I pay a real lawyer $400 for a custom operating agreement. It stings upfront but I sleep better knowing it actually covers scenarios like someone wanting out or dying. Has anyone else gotten burned by a cheap legal form they thought would save them money?

3 comments

3 Comments

alice_allen513d agoOG Member

That's gonna depend a lot on what you're using the template for and how well you understand contracts. A simple NDA or a straightforward promissory note between friends? Templates are probably fine, you ain't losing much if it goes south. But an operating agreement for a business with multiple people involved? Totally different ballgame. The real value of a lawyer isn't just filling in blanks, it's them asking you "what if this person quits tomorrow" or "what if one of you dies" and you realize you never even thought about that. Think templates are fine for simple stuff, but people get real confident and use them for complex situations where they really shouldn't.

abby_cooper13d ago

Used to think templates were fine, but a messy dispute changed my mind fast.

stella_scott9613d ago

Wait, $400? A lawyer actually charged you that little for an operating agreement?