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State delays Processing of LLC startup documents

Hi All. I filed document to start an LLC through Legalzoom.com two months ago. I was assured that it will about 30-40 days for the processing of my documents to be completed by the state of Georgia, but right now after two months I've been informed through Legalzoom that my documents in the hands of the secretary of state office of Georga has been lost through a computer crash/glitch. I've also now been told by Legalzoom that they will have to refile my LLC startup documents and resend it to the Ga secretary of state office for another processing.

I feel really bad about this delays which is causing me heartaches, loss of business opportunities and some money. So, now I feel that I need to be really compensated for this grievous inconvenience and I want to sue someone. I wonder whom I'm I going to sue now and I wonder if I have a chance of getting compensated for this inconveniences

Thanks and hope someone can help

If LegalZoom.com is correct, and the delay is caused by the Georgia office and not by lLgalZoom.com, I doubt that you would be successful in obtaining compensation from the State of Georgia. Furthermore, I have some serious doubts that you would be able to prove damages. It seems to me that you probably could have taken advantage of your "lost" business opportunities as a sole proprietorship.

If you indeed can prove damages, I suggest that you ask LegalZoom to make them good, or at least to refund what they charged you. It wouldn't hurt to ask.

I personally don't think you have a leg to stand on myself since the state made you no promise as to how long the process will take and LegalZoom cannot speak for the state. This was an unforeseen occurrence and caused a delay, so frustrating, but I don't think it makes the state liable for you not making money within a timetable you were told by Legalzoom.

Consult a lawyer as to the viability of suing the state because of delays from technical glitches, or the promise by Legalzoom as to the timetable of processing being a guarantee, or an estimate. I don't think the state is bound by a statement of what the typical time of the state doing its work by LegalZoom. You took the risks of getting involved in this process, and made assumptions based on what Legalzoom told you, and of course the state will beg to differ.

I don't think Legalzoom OR the state will take liability for your losses you think you have incurred until after the process is complete. You simply need more than feelings to prevail in a court when you seek damages.

Good luck suing the state though, as they have the resources to tie up this process for years especially if any litigation is involved.

I am sure by both the online company there is disclaimer for any time. And yes times are just estimates.
And sorry, loss opportunities, I don't believe it, since most you could have done without the filing if they were that great.

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Long story short. Sure, you can sue, anyone can. However, you will ABSOLUTELY lose. I looked at legal zoom's website, specifically in regards to forming an LLC in Georgia . Right in the hyperlink for their turnaround time, they note that you may experience delays in state processing times. You accepted that possibility by using their service. I am sorry for any losses you have experienced, but you will not recover in a lawsuit.

***Sorry for the gigantic screenshot***

Quote:

Originally Posted by kcomissiong

...***Sorry for the gigantic screenshot***

Yes, you should be. :)

Quote:

Originally Posted by kcomissiong

... Right in the hyperlink for their turnaround time, they note that you may experience delays in state processing times. You accepted that possibility by using their service. ...

It could be that the disclaimer was posted after OP's order, for all we know. But as I suggested previously, OP's clamed damages are doubtful, and OP apparently failed to mitigated damages (as the law requires).

You don't have to be an LLC to make money do you? So where are the losses?

You are waiting to be an LLC to collect revenues from the app you were talking about over 3 years ago?
I always thought time was of the essence with any software, plus who actually starts out an app by being an LLC? Is there something risky about this app?

Quote:

Originally Posted by joypulv

You are waiting to be an LLC to collect revenues from the app you were talking about over 3 years ago?
I always thought time was of the essence with any software, plus who actually starts out an app by being an LLC? Is there something risky about this app?

The point Joypulv is making, and with which I agree, is that essentially the only difference between a sole-owned LLC (owned by you, without any other members), and a sole proprietorship (you, personally doing business), is that a LLC gives you limited liability (You personally can't be sued, only the "limited liability" company entity can be sued. So, if a plaintiff gets a judgment against you, they could only collect by seizing assets of the company). Had you marketed the ap directly (and not through a LLC), is that you could have made the same profit as you would have through a LLC. And it's hard to imagine how you personally could be sued for selling an ap.

Quote:

Originally Posted by AK lawyer

If LegalZoom.com is correct, and the delay is caused by the Georgia office and not by lLgalZoom.com, I doubt that you would be successful in obtaining compensation from the State of Georgia. Furthermore, I have some serious doubts that you would be able to prove damages. It seems to me that you probably could have taken advantage of your "lost" business opportunities as a sole proprietorship.

If you indeed can prove damages, I suggest that you ask LegalZoom to make them good, or at least to refund what they charged you. It wouldn't hurt to ask.

Thanks for your quick reply. Just inquired from an attorney here in the state and just got same reply because he said I can quantify and prove damages in this case. So, I'll just let this slide and rest

Quote:

Originally Posted by kcomissiong

Long story short. Sure, you can sue, anyone can. However, you will ABSOLUTELY lose. I looked at legal zoom's website, specifically in regards to forming an LLC in Georgia . Right in the hyperlink for their turnaround time, they note that you may experience delays in state processing times. You accepted that possibility by using their service. I am sorry for any losses you have experienced, but you will not recover in a lawsuit.

***Sorry for the gigantic screenshot***

I really appreciate your effort in researching this case in detail. I believe you too from a legal standpoint, it's just a waste of time to sue the state in this case because I'll loose

Quote:

Originally Posted by Fr_Chuck

I am sure by both the online company there is disclaimer for any time. And yes times are just estimates.
And sorry, loss opportunities, I don't believe it, since most you could have done without the filing if they were that great.

Thanks for your feedback.

Quote:

Originally Posted by joypulv

You are waiting to be an LLC to collect revenues from the app you were talking about over 3 years ago?
I always thought time was of the essence with any software, plus who actually starts out an app by being an LLC? Is there something risky about this app?

This is a different case, but thanks for your feedback, though

Quote:

Originally Posted by AK lawyer

If LegalZoom.com is correct, and the delay is caused by the Georgia office and not by lLgalZoom.com, I doubt that you would be successful in obtaining compensation from the State of Georgia. Furthermore, I have some serious doubts that you would be able to prove damages. It seems to me that you probably could have taken advantage of your "lost" business opportunities as a sole proprietorship.

If you indeed can prove damages, I suggest that you ask LegalZoom to make them good, or at least to refund what they charged you. It wouldn't hurt to ask.

Correction from my reply, I mean "...can't..."