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I'm sorry, but you are just plain wrong about legal costs. Ask any reputable startup attorney in Silicon Valley whether it is net-efficient to start off as a D

I'm sorry, but you are just plain wrong about legal costs. Ask any reputable startup attorney in Silicon Valley whether it is net-efficient to start off as a Delaware C-corporation or a California entity.

7Figures2Commas 12y ago
> Ask any reputable startup attorney in Silicon Valley... By "reputable startup attorney in Silicon Valley" I assume you mean a partner at any of the brand name full-service law firms that bill associates out at $400-500/hour for cookie-cutter work (like Delaware incorporation). My SO is a Biglaw attorney so I know how the game works. You can easily find highly-experienced solo attorneys, many of whom have Biglaw backgrounds, or small firms run by experienced attorneys, who offer their services at hourly rates below the rate an inexperienced second year associate at a Palo Alto Biglaw firm is billed out at. So I'll suggest a different question: ask any honest attorney whether it's net-efficient to retain a Biglaw firm before an individual has a real business.
- swampthing 12y ago
  Yea, because lawyers at biglaw firms are telling people to incorporate as a Delaware C-corporation just so they can rack up legal bills. Ha! I don't know where your SO works, but most biglaw attorneys in Silicon Valley view formation work as a loss-leader. It's not where the money's at. And you definitely don't need to have a biglaw lawyer to form a Delaware C-corporation.
  - 7Figures2Commas 12y ago
    Yes, the incorporation is just the beginning of the cookie-cutter work that gets performed by associates who are billed out at exorbitant rates not justified by their level of experience. I don't have anything against Biglaw. There is a place for the large full-service firms. But I can retain one at any time. At the earliest stages of a company, incorporating in Delaware "because VC" and retaining a Biglaw firm "because success" is just foolish for the average entrepreneur, especially young first-timers who have a high likelihood of failure. Entity selection is usually easily revisited, and you can get high-quality legal counsel at a fraction of the Biglaw cost.
    - swampthing 12y ago
      I'm not sure where you got the idea that I'm arguing for getting a biglaw attorney?

7Figures2Commas 12y ago

> Ask any reputable startup attorney in Silicon Valley... By "reputable startup attorney in Silicon Valley" I assume you mean a partner at any of the brand name full-service law firms that bill associates out at $400-500/hour for cookie-cutter work (like Delaware incorporation). My SO is a Biglaw attorney so I know how the game works. You can easily find highly-experienced solo attorneys, many of whom have Biglaw backgrounds, or small firms run by experienced attorneys, who offer their services at hourly rates below the rate an inexperienced second year associate at a Palo Alto Biglaw firm is billed out at. So I'll suggest a different question: ask any honest attorney whether it's net-efficient to retain a Biglaw firm before an individual has a real business.

swampthing 12y ago
Yea, because lawyers at biglaw firms are telling people to incorporate as a Delaware C-corporation just so they can rack up legal bills. Ha! I don't know where your SO works, but most biglaw attorneys in Silicon Valley view formation work as a loss-leader. It's not where the money's at. And you definitely don't need to have a biglaw lawyer to form a Delaware C-corporation.
- 7Figures2Commas 12y ago
  Yes, the incorporation is just the beginning of the cookie-cutter work that gets performed by associates who are billed out at exorbitant rates not justified by their level of experience. I don't have anything against Biglaw. There is a place for the large full-service firms. But I can retain one at any time. At the earliest stages of a company, incorporating in Delaware "because VC" and retaining a Biglaw firm "because success" is just foolish for the average entrepreneur, especially young first-timers who have a high likelihood of failure. Entity selection is usually easily revisited, and you can get high-quality legal counsel at a fraction of the Biglaw cost.
  - swampthing 12y ago
    I'm not sure where you got the idea that I'm arguing for getting a biglaw attorney?