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Cash is very sparse for startups when they need legal advice the most, formation. I would suggest anything more than what we'd pay for normal filing docs ($750-

by czbond 14y ago

Cash is very sparse for startups when they need legal advice the most, formation. I would suggest anything more than what we'd pay for normal filing docs ($750-$1k) would be too much to do besides on a month to month basis. When I've needed the equivalent of in-house counsel, it's been for specialized knowledge (for us, the Real estate laws) - but that's particular to a niche. I think the idea has merit.

will_brown 14y ago
I completely agree that start-ups would gain the most value with this kind of legal advice at the time of formation. I like your suggestion of a flat fee and including the State filing fee. At $750-$1000 I could advise business start-ups at the time of formation and "draft/file the docs" to form the company in most States. However, it gets tricky to have a flat fee which includes the State filing fee in some cases. Example, in California I would always recommended paying the State to expedite the formation but its optional, or in New York separate from the State filing fee LLC's must publish in a weekly and daily paper once a week for 6 weeks and publication costs are subject to change. At $1,000.00 I would feel comfortable advising client's before formation and continue with unlimited legal advice over the phone for the remainder of the year for the business. However, I think your suggesting $1,000 above and beyond the State filing fee may not be reasonable for the average tech start-up, especially because the start-ups would generally only utilize the unlimited legal advice at the time of formation and little thereafter. >I think the idea has merit. Thanks your feedback was insightful and encouraging.
- czbond 14y ago
  Other areas that we've engaged counsel that might benefit you: - Specific industry specialties (eg: Crowdfunded sites need S.E.C. guidance, B2C companies need Contest guidance, Commercial/Residential Real estate needs H.U.D. guidance.) - a specific package would have been nice. Even if not your specialty, you could get a lead gen fee. - Financial instrument review/drafting (Term Sheets, Conv. Notes, etc) - Founder / Employee Dissolution Just thoughts.
  - will_brown 14y ago
    >Just thoughts. Your comments have been very genuine and insightful. >Even if not your specialty, you could get a lead gen fee. FYI and probably good practical knowledge for all founders to know when dealing with lawyers especially those who use lawyer referral services (1-800-*-pain). 1. Lawyers cannot split fees with non-attorneys (whether a lawyer works with a referral marketing service or a professional CPA who works on the case as an expert, the lawyer cannot split fees with them). and 2. In most States, for a lawyer to split a fee with another lawyer a.) the actual % of the fee split must be in writing and approved by the client (this presents switch and bait, or you retaining a partner with 30 years experience and your case getting dumped on a first year, and b.) the fee % must have a relationship to the actual amount of work done on a given matter (this practically prohibits a lead gen fee, because a referral alone does not support a lawyer splitting the fee). Hope this info can help keep some start-up's legal fees down if not just a little.

by czbond 14y ago

will_brown 14y ago

I completely agree that start-ups would gain the most value with this kind of legal advice at the time of formation. I like your suggestion of a flat fee and including the State filing fee. At $750-$1000 I could advise business start-ups at the time of formation and "draft/file the docs" to form the company in most States. However, it gets tricky to have a flat fee which includes the State filing fee in some cases. Example, in California I would always recommended paying the State to expedite the formation but its optional, or in New York separate from the State filing fee LLC's must publish in a weekly and daily paper once a week for 6 weeks and publication costs are subject to change. At $1,000.00 I would feel comfortable advising client's before formation and continue with unlimited legal advice over the phone for the remainder of the year for the business. However, I think your suggesting $1,000 above and beyond the State filing fee may not be reasonable for the average tech start-up, especially because the start-ups would generally only utilize the unlimited legal advice at the time of formation and little thereafter. >I think the idea has merit. Thanks your feedback was insightful and encouraging.

czbond 14y ago
Other areas that we've engaged counsel that might benefit you: - Specific industry specialties (eg: Crowdfunded sites need S.E.C. guidance, B2C companies need Contest guidance, Commercial/Residential Real estate needs H.U.D. guidance.) - a specific package would have been nice. Even if not your specialty, you could get a lead gen fee. - Financial instrument review/drafting (Term Sheets, Conv. Notes, etc) - Founder / Employee Dissolution Just thoughts.
- will_brown 14y ago
  >Just thoughts. Your comments have been very genuine and insightful. >Even if not your specialty, you could get a lead gen fee. FYI and probably good practical knowledge for all founders to know when dealing with lawyers especially those who use lawyer referral services (1-800-*-pain). 1. Lawyers cannot split fees with non-attorneys (whether a lawyer works with a referral marketing service or a professional CPA who works on the case as an expert, the lawyer cannot split fees with them). and 2. In most States, for a lawyer to split a fee with another lawyer a.) the actual % of the fee split must be in writing and approved by the client (this presents switch and bait, or you retaining a partner with 30 years experience and your case getting dumped on a first year, and b.) the fee % must have a relationship to the actual amount of work done on a given matter (this practically prohibits a lead gen fee, because a referral alone does not support a lawyer splitting the fee). Hope this info can help keep some start-up's legal fees down if not just a little.