When you’re forming a company, whether it’s your first or your fiftieth, there are a 100 questions to be asked. Common questions include: What form should it take? Where should it be created? Who should manage it? How should it be capitalized? Should I hire a Business Startup Lawyer? And many, many more. Answers to these questions will all directly impact how the company is operated, financed, and controlled.
With so much on the line it is important to get good legal advice right from the start. That being said, good advice can be expensive and prohibitively so for a company just starting out.
That is why we created the “Start Up Your Start-Up” program.
Start Up Your Start-Up is Hoeg Law’s innovative start-up formation program. For a single flat-rate payment, Hoeg Law will consult with you about the enterprise you want to create, draft the documents necessary to get it formed, and work with you to get those documents executed, filed, and placed in the books and records of your brand new company.
The Start Up Your Start-Up program covers the creation of both Corporations and Limited Liability Companies in Michigan and Delaware. Formation of an entity in another state or in another form will involve a different rate.
In almost all cases, a new entity with relatively standard capitalization, management, and founder documentation can be created by Hoeg Law with about 5 hours of legal work (from early consultation, through drafting, filing, and creation of the company minute book). In some instances, however, a start-up will seek to create a more complex organization, or decide on a different organizational structure part way through the process.
The “First Five” rule gives the benefit of the discounted rates of the Start Up Your Start-Up program to even those clients who might need more complex organizational advice and documentation or who want to change direction midstream. In the case of these longer term projects, it applies the Start Up Your Start-Up payment to the “first five hours” of legal work expended. Additional work required to form the entity will be billed at Hoeg Law’s normal, extremely competitive rates, but the client will always get the benefit of the discounted rate for those “first five” hours.
“First Five” should be the exception and not (ironically enough) the rule. That said, when having your first discussion with our Startup Lawyer at Hoeg Law (even before formally hiring the firm) we will tell you whether the entity you are considering forming is likely to fall within the normal Start Up Your Start-Up single payment structure or whether the “First Five” rule might apply. We also understand that circumstances change (or prove to be more complex then they initially appeared), and will make sure to let you know if things look like they are going to take more than 5 hours of legal time after work has begun.
Filing fees to the States of Michigan or Delaware are not covered by the Start Up Your Start-Up program. Those fees are generally in the low hundreds of dollars, but vary based on the type of entity formed. Also, for corporations, fees vary based on the number of shares authorized for issuance. Clients will see state fees on their invoices along with the application of the Start Up Your Start-Up payment.
We do require that the payment be made in advance prior to the commencement of legal work. Such amount will be held in trust until “earned” by the firm. It’s earned either through delivery of a fully executed and filed company minute book or upon the expenditure of five hours of legal work under the “First Five” rule.
As a client of the firm, a Startup Lawyer at Hoeg Law would be more than happy to help you with all of your newly-formed entity’s organizational, financing, and contractual legal needs, all at our extremely competitive regular hourly rates.
It allows companies at all levels of ambition and size to receive good, effective legal counsel. Furthermore, counsel is provided by at a cost they can afford.