Forums: Discussions for entrepreneurs and small business.

I'm founding a startup and my friends and family (all non-accredited) want to invest $30k in exchange for equity. I went to a lawyer and they told me that to set up a C Corp and do the investment terms it would cost me about $10k. 

I'm setting it up as a C Corp because I anticipate needing institutional investment down the road so it is important to get these early terms clear, but is there really no other way than to pay $10k?

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StartupRob,

While you should definitely get legal advice so you can do it right and (more importantly) avoid creating issues which could render your company 'unfundable" in the future - I'd say the price quoted is a bit "stiff'.

 

If you contact me directly (my address is in my signature) I can give you the name of attorney that specializes in working with early stage companies.

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