Written by Angus Miles on July 4, 2022

LawDepot Review – BEWARE Before You Signup!! (Free Trial Inside!)

Today we are going to be looking at the LawDepot Review, Now I know what you're thinking.

"Are the documents from LawDepot Legally binding?"

The short answer is yes. The long answer is a little more complex than that. So here is everything you need to know about creating legal documents through LawDepot.

What Is LawDepot Exactly?

Founded in 2001, LawDepot quickly realized the potential it had by helping people create the basic legal documents they required on a day-to-day or month-by-month basis. With noticing the importance of providing quick, accessible, safe, and affordable legal resources for all persons in a variety of real-life situations.

Fast-forward to today, 2020 where they offer hundreds of location-specific documents all around the world, and over 10 million legal documents created! The key to their success as an industry leader is in the simplicity of the design. Where you understand exactly what document you are in need of and fill out a few questions relating to the topic and, boom, a legally binding contract is created for the specific circumstances that you can use to help your personal or business life.

LawDepot Review – BEWARE Before You Signup!! (Free Trial Inside!) 1

You can use LawDepot to create:

  • Affidavit
  • Last Will and Testament
  • Partnership Agreement
  • Resume Builder
  • Letter Of Demand
  • Cease & Desist
  • Bill Of Sale

This and many many more you can find Here

Pretty much any legal document that a standard business or person can think of, you can create with LawDepot. This is what makes it so great. The quick and simple questions make it easy for anyone to get started.

LawDepot Review overview

LawDepot Review

Because LawDepot is heavily focused on creating legally binding documents, it comes with a variety of options of how you'd like to compile them. From basic information to detailed, in-depth documents.

When it comes to ease of use, nothing comes close to LawDepot.

The great news here is its competitive pricing within the legal document creation industry, especially when you realize how much time you're saving from the ease of signing up for quick document creation.

You don't need to worry about:

  • Hiring a Lawyer
  • Knowing Country and State-Specific Legislation
  • Saving/Losing Documents
  • Downtime
  • Trusted Billing
  • 24/7 access

Once you add up these factors, LawDepot is a really cheap and easy system for you or your new business to use! All you need to focus on is creating a great document that is specific to your needs. It especially allows you to focus on what matters and that's your time and getting it right the first time.

You can have as many documents as you want, It doesn't even have to cost you anythig, use the free trial and get the first 7 days free!

Legal Business Documents

A common question that is asked when talking about obtaining legal documents online is, well, are they legal/ legally binding? The truth is, almost anything can be used to create a legally binding contract, even a napkin. As long as both sides understand the terms and conditions, and enter the contract knowingly then it can be enforced. The problem with this method is there can be a lot of misunderstanding and varying interpretations of what words mean. This is where LawDepot comes in. They structure each document to alleviate many of these unknowns and provide clarification in the documents. While this doesn't provide true flexibility in document creation, it does put you in a better position.

What documents does LawDepot offer to those running a business or looking out for themselves in personal transactions?

Business Related Legal Documents

Assignment of Partnership Interest

What is an assignment of partnership interest?

This is where a partner makes the decision to sell their stake in a partnership to a third party. This assignment document is designed to record the details of the transfer to the new partner. The new partnership will take on the obligations and benefits of the business partnership (Including profits and losses). This is, as a standard transaction, in exchange for compensation to the now, previous partner.

Who is involved in an assignment of partnership interest?

There are two main parties in relation to an assignment of interest however it also includes the remaining partner. The first party is the assignor, who is the business partner who is transferring their benefits, obligations, and rights in the partnership in exchange for compensation. Secondly, the assignee, who is the new partner that purchases the assignor's interest in the partnership (Including all mentioned above)

So, What is a Partnership?

A partnership is an association type of business organization where either two or more individuals (Including business entities) operate a business. This includes its sole purpose of making a profit. Each partner has rights and obligations enforced by a partnership agreement including potential liabilities and access to profits of the business.

How does the process of buying the interest of a partnership work?

When it comes down to the sale of either full or economic partnership rights it really depends directly on the initial partnership agreement made between the parties when the business began. This can directly affect the who, what, and when a partner is able to sell off their share of the partnership. Usually, for example, if a partnership consists of two individuals and the 2nd person decides to sell their share of the partnership. The remaining individual will get first dibs on those shares, if they are unable or unwilling to purchase those shares, and assuming the partnership agreement allows it, then they will be able to publically sell full or partial partnership rights.

Business Partnership Agreement

What is a partnership agreement?

A Partnership Agreement is usually a signed, written and notarized document between two or more individuals (Or entities) used to govern a business. Sometimes referred to as a business partnership contract, general partnership, or business partnership agreement it is one of the most fundamental documents needed to start and run a partnership.

This partnership agreement is designed to clearly define agreed-upon terms and conditions in which the business entity must operate henceforth until the foreseeable future. It includes such information as capital contributions, accounts, interest, and reports to help clarify the intentions of each partner. While this starts to cover the expectations of the start of the business, the partnership agreement must also include each expected and unexpected aspect of the business such as new partners, profit and loss, indemnification, goodwill, and importantly clear and understood definitions.

So who needs a partnership agreement?

Any business with two or more people (Or entities) that want to use it as a vessel to make money into the foreseeable future. Clear terms help everyone to understand what to expect when getting into a business with another entity even if they are family, friends, or colleagues.

What are the main aspects of a partnership agreement?

Basic and background information - To start from the basics it covers the who, what when, and why of the business from names to addresses.

Capital contributions from each party - This covers what was invested into the business/ partnership, including cash or property, and has its agreed-upon value when injected into the business in a set currency. It is here where it can be noted the percentage of the partnership contributions to ownership and time frames.

Adding additional capital and withdrawal of capital -

Profit and Loss Distribution

As agreed to by partners, profits and losses can be distributed by:

  • Fixed Percent: This number is a fixed percentage (e.g. 45, 55). The numbers must add up to 100% between all partners.
  • Equal Share: Profits and losses are distributed evenly between partners.
  • In proportion to capital contributions: the share of profits and losses depends on how much the partner has invested.

Management and Voting

Partnerships can be managed by a designated managing partner, through majority voting, or by unanimous vote by all partners.

Voting can be carried out through three possible methods:

  • Proportional to Contributions: Voting powers reflect each partner's capital contribution.
  • Proportional to Profit Share: Voting powers are assigned according to profit distribution.
  • Equal Vote: Voting power is equal, and each partner is assigned one vote.

Partnership Tax Elections

Federal tax audit rules allow the IRS (Internal Revenue Service) to treat partnerships as taxable entities and audit at a partnership level instead of conducting individual audits of the partners. This means that depending on the size and structure of the partnership, it is possible for the IRS to audit the partnership as a whole, rather than auditing each partner individually.

Partnership agreements should address certain tax elections and choose a partner for the role of the partnership representative. The partnership representative serves as the figurehead for the partnership under the new tax rules.

Law Depot's Partnership Agreement explains the rules clearly and allows you to:

  • Choose whether the partnership wishes to elect out of the new tax elections, if eligible. If the partnership chooses to elect out, they must renew this decision annually.
  • Make the partnership representative answerable to the partners in their dealings with the IRS.
  • Elect to have each partner individually assessed for their share of the tax liability if an audit assesses a tax liability at the partnership level.

Partnership Withdrawal

If the partnership contract permits withdrawal, a partner may make an amicable exit so long as he or she is adhering to the notice period, and other terms specified in the agreement. If a partner wishes to withdraw, they can do so using a Notice of Withdrawal from Partnership form.

Partnership Dissolution

Partners may indicate how assets are distributed between partners in the event of dissolution.

Some of the most common reasons partners may dissolve a partnership include:

  • All partners agree on a specified end date for their partnership
  • All projects have been completed or the purpose of the partnership has been fulfilled
  • The death of a partner
  • Bankruptcy of a partner or the partnership
  • A partner withdraws from the partnership
Article written by Angus Miles
Angus Miles is on a mission to help people start their legal journey. He understands that for many people, the legal process can be confusing and overwhelming. He knows firsthand how important it is to have someone you can trust when dealing with the legal system.

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