Startup Legal Services Fixed Fee Package For University Spinout Companies Only
This package is intended to cover many of the more common legal requirements of startup companies in their initial phase of existence for a single fixed fee. Patent applications are not included. Included and excluded services are specified further below.
Included Services
- Incorporation or formation of limited liability company
- University patent license option or license
- Stock option plan, if desired, with forms of option agreement, and explanation of procedures to follow regarding grant of options, and of tax treatment
- Provision of standard form contracts (without customization) such as nondisclosure agreements, employee offer letters, and access to a library of legal forms
Fee
Option A: $5,000 (payable in advance) plus 1% of founder's equity
Option B: $7,500 (payable in advance)
Choice between Option A and B is yours, at time of engagement. Both options exclude out-of-pocket costs, such as Secretary of State filing fee and filing agency fee for entity organization, which will be billed separately, usually around $250 if no expediting is requested.
Excluded Services
- Patent applications
- Litigation
- Major transactions, such as mergers or joint ventures
- Negotiation and documentation of an angel or venture capital financing. This work can be provided by mutual agreement outside the fixed fee arrangement, and in many situations a majority of the fees can be paid at the time of closing, from the financing proceeds. Average fee for a startup financing transaction is $30,000.
- Maintenance of stock book or minute book and individual option grants
- All services requiring referral to outside attorney, and all other services not listed under "Included Services."