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> and have $120k in legal, accounting, and capex spending (your laptops). So about 100k for legal and accounting? Is that normal?
by syllogism 12y ago
> and have $120k in legal, accounting, and capex spending (your laptops).
So about 100k for legal and accounting? Is that normal?
- jamiesonbecker 12y agoSeemed like a lot to me, too, but a few patents can eat that up fast.
- mikeyouse 12y agoIf you're planning on making it last 18 months, $100k is probably in the right order of magnitude. Incorporation fees, corporate taxes, liability insurance, workers comp., 409a valuations, audit fees, patent / IP expense, trademarks... You'd be surprised at the number of $5k bills you get from various parts of running a business.
- jasonmcalacanis 12y agoYou can have some fees deferred. but $3k per person for computers is $12k... company formation is $5-10k, convertible note is $5-10k, terms of service, IP assignment, etc. Patents are $10-50k depending on how far you take them. $120k is high, but not outrageous.
- vasilipupkin 12y agoat that stage, patents are probably a waste of time for a startup, wouldn't you say ?
- kacperp 12y agoI guess it doesn't necessary have to be filing patents, but rather checking whether you'll be infringing any.
- kazagistar 12y agoIsn't that exactly what you don't want to do, since infringement is almost impossible to avoid, and wilful infringement costs more?
- mbesto 12y agoI've got a reputable SF lawyer (does YC companies to boot) to do formation+note+etc for ~$3k. Cooley/WSGR/etc will all look for $25k (and sometimes help by deferring), which IMO is outrageous. It's outrageous not because it's incorrect given the market, but they're value isn't high enough to justify the cost. If you're negotiating a Series C, I can see their value but not when you're just starting. Early stage law is fairly boiler plate, that is, unless of course patents come into play.