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Any lawyers that take payment for LLC formation?

Santa Clara, CA |

I am in the process of launching a startup in the Bay Area and I was going to handle everything behind LLC formation and incorporation by myself but I have been advised otherwise. I cannot afford an attorney at this time and I hear that there are some lawyers in the bay area that accept deferred payments that are paid up with certain triggers such are raising a series A. Are there any lawyers here that accept deferred payments? If so what is required? Or should I just file all the LLC documents myself and waiting till I raise my first round of funding to get a lawyer to make any necessary changes and modifications if necessary?

Attorney Answers 4


  1. If you raise funding without the assistance of a lawyer you will be inviting litigation. Issuance of securities pursuant to a permit or an exemption from requiring a permit, and any offering memoranda are very strictly regulated.

    Filing the Articles of Organization and Statement of Information and getting a form Operating Agreement are not difficult. Everything else is.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.


  2. We can offer LLC formation for a very affordable flat rate, however we do not do deferred fees that are contingent upon successful series financing.

    The answer to this question is for general purposes only and does not form an attorney-client relationship.


  3. While I don't defer fees, I am going offer a free observation that you may find helpful:

    Any entrepreneur who intends to find investors - especially institutional, such as VCs - should form a corporation rather than LLC. CA VCs almost never invest in LLCs.

    This information does not constitute legal advice and does not establish an attorney-client relationship.


  4. A number of firms in the Bay Area have programs specifically targeted towards startups and will defer fees until funding. You generally pay for the privilege of deferral in either relatively high fees or in giving up some equity. Either way it can be costly down the line.

    I'd be happy to speak with you about your company and see if I can make any recommendations for a firm that might be a good fit. I spent four years recently in S.F. at two funded startups and know the area fairly well.

    Feel free to call my office tomorrow if you'd like to chat.

    I am not a family law attorney, and suggest that you consult with one to get additional details on your specific situation. All answers are for general purpose only and do not establish an attorney-client relationship.

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