Ask HN: What's the best way to incorporate a startup?

[jlm382]

I've heard conflicting opinions from a lot of people on incorporating a startup. Some say to go cheap and use legalzoom, others say that it's better to incorporate the legitimate way from the start, and to go through a law firm like Orrick.

My needs are that of a typical startup -- multiple co-founders, potential investors down the road, and equity stakes that will need to be offered to employees.

What are your views on the best way to incorporate?

[teej]

http://www.gabrielweinberg.com/startupswiki/Ask_YC_Archive#t...

[lrm242]

Only you can make this decision. Using LegalZoom trades money for risk. Using a lawyer does the opposite. The amount of risk is directly proportional to your starting point within the spectrum of complication. For example, if it were only you then LegalZoom carries with it less risk than if you have three co-founders with whom you will be splitting both equity and responsibility.

As an aside, I see a question like this once a week on HN. What's this fascination with "incorporation" that people think it is somehow a milestone in their business? Folks, this is administrative crap: make a decision and move the heck on. You are already smart enough to know, deep down inside, that using a lawyer costs more money but should protect you from more eventualities. Only you can place a price on the risk you're willing to take on.

[khandekars]

http://blog.guykawasaki.com/2007/06/482413_for_lega/comments...

[psyklic]

well im sure few would argue that the "best" and "optimal" way is to get a lawyer ...

[garply → psyklic]

I would argue that the "optimal" way depends on how much funding you have.