Home > Research Legal Advice > Corporate / Incorporation > Costs and fees for setting up a Delaware C corp
Asked 12 months ago - San Diego, CA
FlagLaunching a new software company and looking to hire a Corporate lawyer to set up a Delaware C corp. How much are the costs and fees to form a Delaware C corp.
The costs and fees to set up the DE corp are the least of your expenses, probably $1500. The real expense will be the fees to negotiate the terms letter with the VC, analyze the securities laws issues and comply (probably simple as they will all be AIs), prepare a PPM if necessary (probably not), review their form of Stock Purchase Agmt, and close the deal. This will be $10,000 to $15,000 or more, primarily controlled by demands of the VC and his counsel.
If you are seeking a nationwide operating corporation seeking VC capital, setting up a corporation is a fraction of what you are seeking. In my experience during the "dot com" era, a package of goods is usually quoted, including corporate formation, essential contracts sucn as employment, distribution, web site related, IP protection and other factors. In my experience it takes several hours to determine what a client wants, narrow that down to what he (or she) needs immediately as opposed as to what can wait, determine a schedule and a price. So, how much for a Delaware C corporation is a small part of the picture, and cannot be done properly in tems of customizing bylaws and determining what and how securties will be issued, and a quote for "canned" bylaws doesn't really do you any good.
As you can see from the other answers, you're probably asking the wrong question. Forming a corporation is a no-brainer, you can do that with any number of online services for a nominal charge. The question you should be asking is, what type of guidance do I need in addition to the formation of a corporation? Such as c-corp vs. s-corp, state of incorporation, capital structure, introductions and guidance on taking investors, securities law issues, etc. I think all the answers have been insightful.
There are many factors involved in putting together a corporation. Is there a reason you are seeking to be incorporated in DE? Will you have outside investors in your company? Where will you be doing business? Anywhere in particular outside of California? I would be happy to assist further, as would other AVVO writers, but I think we'd need to know more about what you're looking to accomplish.
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