You probably haven't heard from us for a while because we decided to go heads-down and execute on improvements to the product based on your feedback. We wanted to provide you with some banger updates for First Quarter 2025. Our team has been hard at work to bring you new features, improved AI capabilities, and valuable tools that will help you grow your business while keeping legal and operational costs low.
1 – SXSW at Capital Factory 2025 Recap: New UI & Custom AI Agents
On March 7, 2025, we unveiled our new user interface and custom AI agent technology at Capital Factory during SXSW in Austin, Texas. Our AI Paralegal, ParaTM, now uses multiple large language models along with a patented AI approach to deliver faster, more accurate legal support.
Para can now:
- Conduct web research and draft documents in Microsoft Word format
- Review contracts and deliver recommendations
- Answer your legal questions with higher accuracy than other LLMs (e.g., Google Gemini 1.5 Flash)
- Provide links to web pages related to the answers provided
- Help you form LLCs or C-Corps in Texas, Nevada, Wyoming, and Delaware—cheaper and faster than traditional methods. And our AI Paralegal assists you with all your questions during the process, unlike LegalZoom, Stripe Atlas and others.
Here’s a picture from SXSW of our LegalMente AI Cowboy Hats on a robotic dog rover, courtesy of Tempest Droneworx.
New Features
Introducing Our New UI and Custom AI Agent Technology
We’ve added a boatload of new features since we last chatted:
- ParaFormTM – Our AI Paralegal, Para, now lets you form a business (LLCs, LPs, and Corporations) in Texas, Nevada, Wyoming, and Delaware. Para guides you every step of the way. Every business formed with ParaForm also gets reviewed by our human legal experts, ensuring compliance & accuracy
- Prompt Library – A collection of battle-tested prompts to help businesses automate processes, streamline operations, help with sales and marketing, and get legal work done.
- Learning Center – Free tutorials on how to use AI to scale and automate your business. More courses are on the way!
- Para’s Prompt Picks For You – Tailored prompt suggestions designed specifically for you and your business needs.
AI In The News
OpenAI recently launched 4o Image Generation:
The promise of AI to reduce costs and expand capabilities continues—but some worry about rising subscription fees for advanced services.
FinCEN’s new Corporate Transparency Act Rule on BOI
Effective March 21, 2025, U.S. companies no longer need to file beneficial ownership information (BOI). Only foreign entities registered to do business in the U.S. must comply within 30 days of publication or registration.
Elon Musk has recently moved his businesses out of Delaware and into Texas.
Several companies, including Dropbox, Meta and Bill Ackman’s Pershing Square Capital, are either considering incorporation moves or have already made plans to exit.
Our CEO, José Padilla, celebrated his 50th birthday in Miami, Florida on February 2025.
Check out the highlight reel here.
We Value Your Feedback
Back in October–November 2024, we ran customer surveys and rewarded participants with an Amazon gift card.
Many of you mentioned that you didn’t need frequent legal help, or you were concerned about AI’s accuracy. We took that to heart.
Since then, we’ve upgraded our AI Paralegal, Para, to deliver the highest quality and most accurate responses, outperforming ChatGPT and Google Gemini in legal reasoning and contract drafting tasks (see links below).
Even if your legal needs are infrequent, we now offer more small business and startup tools—like our Prompt Library, Learning Center, Para’s Prompt Picks For You and Client Concierge—to help businesses leverage AI to automate processes and grow their businesses. These allow you to easily obtain benefits of AI for your businesses beyond just legal help.
With these moves, we aim to become the One Stop AI Business Growth and Legal Shop for Small-To-Medium Sized Businesses, Startups, and Lawyers at solo and small law firms
Check out examples of Para’s Proven Performance and Accuracy:
- Outperforms Google Gemini 1.5 Flash on legal benchmarks from Stanford University’s LegalBench. Click here to see proof.
- Higher accuracy than ChatGPT-4o & Google Gemini on logic/reasoning. Click here to see proof.
- Better than AI agent tool Relevance AI for outbound sales cold email drafting: Click here to see proof.
Intellectual Property & AI Tech Updates
We received a Notice of Allowance from the US Patent and Trademark Office for our AI patent on RedFlag Detection—another step in ensuring our multi-LLM and NLP approach remains bleeding-edge with proper AI Governance and guardrails against hallucinations (NIST AI 600-1). LegalMente’s AI was trained on the legal experience of a Harvard-graduate attorney with thousands of contract reviews.
Also, LegalMente AI now supports multiple languages and legal jurisdictions, including English, Spanish, Portuguese, Italian, Malay, Hindi, French, and German.
Check Out Our AI Tutorials
- YouTube Short from our CEO, José, on using AI to work smarter, not harder. Click here to learn how.
- Thinking of moving your business from Delaware and into Texas, Nevada, or Wyoming? Learn how to use AI to easily move your business. Click here to learn how.
Check out this X post from Greg Isenberg (CEO of Late Checkout) on The Future of Legal Work:
Lawyer Joke Of The Month
What’s the difference between a lawyer and a doctor?
A doctor can bury his mistakes, but a lawyer usually has to visit them in prison.
PS – We can joke because one of our Founders is a lawyer :)
Monthly Thoughts From Our Founders
José Padilla, Chief Executive Officer: Welcome to end of the first quarter of 2025, how do things feel? Chaotic perhaps? Some may complain about the new tariffs. However, for all startups, we have had the virtual tariff of high legal fees keeping many from getting the help they need. Now, AI is here to break down this wall for those without the money of big tech. Now is the time to use your creative energies to build a business or invest in one.
Douglas Davila-Pestana, Chief Technology Officer: Open AI recently launched a new subscription tier called Pro which costs $200/month. There was another report that said OpenAI was thinking about increasing its subscription prices to $2,000/month.
Our question is why? The promise of AI was to help automate tasks and reduce costs. Not increase costs.
We recently talked with a VC who said to us: "every startup I see is at a race to the bottom when it comes to pricing." She was advocating that startups should all just arbitrary raise prices.
But why? These are small-and-medium sized businesses that many startups serve. Some of these small businesses don't have the resources to afford high prices like a $2,000/month subscription.
We were all told that AI was to help drive down costs for consumers and businesses. So, it's the right thing to do to help become more price deflationary, not inflationary. This will help small businesses in the US succeed, grow our economy, and help create new jobs.
The burning desire for personal freedom and ability to control one's own time is what drives entrepreneurs. That's why LegalMente AI launch pricing only costs $9/month: https://app.legalmente.ai/clerk-plan
Small businesses don't have the financial resources as Amazon and Walmart. We're here to empower small businesses to leverage AI to create an even playing field against the big guys.