TL;DR
Pick the service that matches your entity path, not the slickest landing page. Stripe Atlas (~$500) for Delaware C-Corp formation aimed at fundraising, with banking and setup bundled. Clerky for post-incorporation startup documents (equity, board, hiring paperwork). LegalZoom or direct state filing for straightforward LLCs. Terms.law-style flat-fee counsel when you need a real attorney without mystery hourly bills. Rocket Lawyer (or similar) for ongoing template access. Formation is a weekend; bad equity and IP hygiene haunt you for years.
Quick Comparison
| Service | Best for | Starting price | Includes | Our pick? |
|---|---|---|---|---|
| Stripe Atlas | Delaware C-Corp + banking path | ~$500 one-time | Formation, EIN, banking intro | Best VC-track formation |
| Clerky | Post-incorporation startup docs | ~$400+ packages | Equity/board/fundraising docs | Best paperwork after formation |
| LegalZoom | Simple LLC / consumer formation | $0–$299+ | State filing help | Best bootstrapped LLC path |
| Terms.law | Flat-fee startup legal advice | ~$200–$500 | Attorney consults/reviews | Best affordable counsel access |
| Rocket Lawyer | Ongoing docs + light advice | ~$40/mo | Templates, consults | Best subscription legal |
| DIY state filing | Cheapest simple entities | State fees only | What you file | Best if you know the steps |
How We Chose These Services
We scored legal services on early-stage founder reality:
- Entity-path fit — VC-track C-Corp vs local LLC are different products.
- Document quality — startup-grade equity docs beat generic consumer templates.
- Total cost clarity — formation fee vs upsells vs later attorney hours.
- Time-to-done — banking, EIN, and share issuance without a three-week scavenger hunt.
- When you still need a human lawyer — services should say so, not pretend otherwise.
- Ongoing vs one-time — formation is episodic; contracts and hiring are continuous.
- Mistake cost — cheap filing that botches founder stock is expensive.
1. Stripe Atlas — Best Delaware C-Corp path for fundraising
Who it's for. Founders planning to raise venture capital (or want the standard US startup shape): Delaware C-Corp, clean cap table starting point, and faster banking setup.
Standout features. Company formation package, tax ID help, bank account introductions (historically Mercury and similar), and startup-oriented onboarding. Often bundled with cloud credits that offset part of the fee.
Pricing. Typically around $500 one-time for the formation package, plus state/registered-agent style ongoing costs. Model the first-year total, not just the headline fee.
Pros. Optimized for the fundraising default stack; fewer "what do I do next?" gaps; credible with many investors and banks.
Cons. Wrong fit if you should be an LLC; not a substitute for counsel on custom founder deals; US-centric assumptions.
Limitations / when to switch. After formation, use Clerky (or counsel) for equity issuances and option plans. Atlas gets you incorporated — it doesn't run your legal life forever.
2. Clerky — Best post-incorporation startup documents
Who it's for. Incorporated startups that need stock issuances, option plans, board consents, and fundraising-related paperwork without reinventing YC-flavored documents.
Standout features. Structured flows for common startup legal events, templates used widely in the startup ecosystem, and a process that reduces "Word doc archaeology."
Pricing. Packages often start in the mid-hundreds depending on what you're generating. Cheaper than custom drafting for standard events; not free.
Pros. Startup-native documents; pairs with Atlas or other formation paths; reduces silent cap-table mistakes.
Cons. Still need judgment for weird situations; not a litigation firm; won't replace negotiation counsel on a priced round.
Limitations / when to switch. Bring in a startup lawyer for unusual structures, disputes, or financings where the other side has counsel and you don't.
3. LegalZoom — Best consumer-friendly LLC formation
Who it's for. Bootstrapped founders, local businesses, and service companies that need a simple LLC (or basic corp) without the Delaware-VC playbook.
Standout features. Guided formation, state filing assistance, and a familiar consumer UX. Useful when convenience matters more than startup-specific equity tooling.
Pricing. Marketing often shows low entry prices; paid tiers and registered-agent add-ons raise the real bill. Read what is included before you click.
Pros. Easy; widely known; fine for straightforward formations.
Cons. Upsells can be aggressive; documents are more generic than Clerky for startup equity; not optimized for VC expectations.
Limitations / when to switch. If you're aiming at institutional investors, Delaware C-Corp via Atlas (or counsel) is usually the cleaner story. Use LegalZoom for simple entities, then hire specialists when stakes rise.
4. Terms.law — Best affordable startup-savvy counsel
Who it's for. Founders who need a real attorney for contract review, terms of service, founder agreements, or a sanity check — without an open-ended hourly meter.
Standout features. Flat-fee consultations and reviews in ranges founders can budget (often a few hundred dollars depending on scope). Attorneys who understand tech/startup context beat generic business lawyers for product companies.
Pricing. Commonly ~$200–$500 for scoped consults/reviews. Confirm scope in writing: what's included, what's out of band.
Pros. Human judgment; predictable cost; better for nuance than template mills.
Cons. Not unlimited legal; complex deals still need deeper engagement; availability varies.
Limitations / when to switch. For full financings, employment programs, or disputes, engage retained startup counsel. Flat-fee reviews are a bridge, not a law firm on retainer.
5. Rocket Lawyer — Best subscription for ongoing light legal needs
Who it's for. Founders who regularly need document templates, quick questions, and predictable monthly spend — NDAs, basic contracts, letter templates — not one-off formation only.
Standout features. Document library, attorney consult access on plan terms, and document review features depending on tier.
Pricing. Often around ~$40/month. Cancel if you're not using it; subscriptions feel cheap until they renew unused.
Pros. Predictable cost; good for recurring low-stakes docs; better than Googling random templates.
Cons. Not ideal for financing or complex IP; quality varies by matter; easy to mistake templates for tailored advice.
Limitations / when to switch. Upgrade to specialist counsel when the counterparty is sophisticated or the downside is company-threatening.
6. DIY state filing — Best when you know exactly what you're doing
Who it's for. Experienced founders or those with a simple single-member LLC in a clear jurisdiction who will handle EIN, operating agreement, and banking themselves.
Standout features. Lowest cash cost; full control; no upsell funnel.
Pricing. State filing fees only (varies widely). Your time is the real cost.
Pros. Cheap; educational; no vendor lock-in.
Cons. Easy to miss registered agent, publications, or tax registrations; no banking warm intro; zero help on equity.
Limitations / when to switch. Pay for Atlas/LegalZoom/counsel when speed, banking, or document quality matter more than saving a few hundred dollars.
Formation checklist founders still skip
Whatever service you pick, the boring follow-through matters more than the logo on the receipt:
- IP assignment from founders (and early contractors) into the company — early.
- Equity issuances documented — verbal "we're 50/50" is not a cap table.
- 83(b) elections where relevant and time-sensitive — calendar this; missing it is a classic expensive mistake.
- Banking + bookkeeping hooked up so legal entity and money movement match.
- Basic customer terms before you take money — templates help; a flat-fee review helps more if you handle regulated data.
If you have a co-founder, invest in the conversation about roles, vesting, and what happens if someone leaves before incorporation vanity. Clerky can paper standard vesting; it cannot fix a relationship that was never negotiated. Atlas/LegalZoom get you an entity. Governance and incentives are still your job.
International founders should not blindly copy Delaware advice from US Twitter. Local tax residency, subsidiary needs, and investor expectations change the playbook — get counsel that has done cross-border startup work, not only consumer formation chatbots.
Decision Framework: Which Should You Pick?
- Choose Stripe Atlas if you're US VC-track and want Delaware C-Corp + setup convenience.
- Choose Clerky after incorporation for equity, board, and standard startup paperwork.
- Choose LegalZoom (or DIY) for a simple bootstrapped LLC.
- Choose Terms.law-style flat-fee counsel for reviews and founder agreements.
- Choose Rocket Lawyer if you want a monthly legal toolkit for light ongoing needs.
- Choose DIY filing only if the entity is simple and you'll finish the boring follow-through.
- Always get a human lawyer for co-founder equity disputes-in-waiting, regulated products, or fundraising.
Pricing reality checks
Formation fees are the trailer; ongoing costs are the movie. Registered agents, state franchise taxes, bookkeeping, and eventual 409A or option-plan maintenance dwarf the Atlas or LegalZoom invoice for companies that stick around. Budget for counsel hours around your first hire with equity and your first serious customer contract — those moments create more risk than the incorporation form.
Be suspicious of "unlimited legal" marketing. Caps, fair-use policies, and excluded matters always exist. Read what is excluded: financings, disputes, and custom negotiated deals are usually where subscription plans end and real retainers begin. That is fine — just do not discover it mid-crisis.
If cash is extremely tight and the entity is simple, DIY filing plus a single Terms.law-style review of your operating agreement/founder deal can beat a loaded consumer package full of upsells you do not need. Pay for convenience when banking intros and speed unblock revenue; otherwise buy advice where mistakes are irreversible.
Common Mistakes to Avoid
- Incorporating the wrong entity because Twitter said so. Match structure to investors and taxes.
- Skipping founder IP assignment. If IP isn't in the company, you don't have a clean startup.
- Using consumer templates for priced rounds. Counterparties will notice.
- Paying for formation and ignoring post-incorporation docs. Shares don't magically exist.
- Treating subscription legal as full counsel. Know when you're out of depth.
- Waiting until a dispute to get advice. Cheap now, catastrophic later.
First 30 days after you pick a formation path
Week 1: form the entity (Atlas, LegalZoom, or DIY) and store every PDF in a single company folder. Week 2: open banking, set up bookkeeping, and issue founder shares via Clerky or counsel — do not leave equity "implied." Week 3: get IP assignments signed; calendar any 83(b) deadlines the same day someone mentions them. Week 4: ship basic customer terms and a privacy posture that matches what you actually collect. Book a flat-fee review if you handle sensitive data or have an unusual ownership story. Formation is complete only when banking, equity, and IP match the story you tell investors and customers.
Key Takeaways
- Atlas for Delaware C-Corp fundraising path; LegalZoom/DIY for simple LLCs.
- Clerky covers the startup paperwork most founders forget after formation day.
- Flat-fee startup attorneys beat mystery hourly bills for scoped reviews.
- Subscription legal helps with templates — not high-stakes negotiations.
- Structure and equity hygiene matter more than which logo is on the formation receipt.