2026 Comparison
Best Legal Tools for Startups
From incorporation to fundraising documents, the right legal tools save thousands in attorney fees. Compare the platforms that handle formation, SAFEs, equity docs, and corporate compliance.
Quick Answer
Clerky is the best legal tool for VC-backed startups — its documents are used by YC companies and approved by top VC law firms. Stripe Atlas is ideal for international founders who want incorporation plus Stripe payment setup at a flat $500. Cooley GO offers free document generators from one of the top startup law firms.
Key Takeaways
- 1.Incorporate as a Delaware C-Corp if you plan to raise venture capital — no exceptions
- 2.Clerky documents are the YC standard and accepted by virtually all VC investors
- 3.Stripe Atlas is the most cost-effective all-in-one for international founders ($500 flat)
- 4.Cooley GO offers free SAFE and convertible note generators from a top-tier law firm
- 5.Budget $5,000-15,000 for legal costs when you raise your first priced round
| Metric | Clerky | Stripe Atlas |
|---|---|---|
| Incorporation Cost | $799 | $500 |
| Best For | VC-backed startups | International founders |
| SAFE Documents | From $299 | Not included |
| Bank Account | Not included | Mercury included |
| Payment Processing | Not included | Stripe integrated |
| YC Approved | Yes | Yes |
Clerky
Top PickLegal paperwork automation for startups
Pros
+ Used by YC and top accelerators
+ Investor-approved document templates
+ Automated post-incorporation tasks
+ Purpose-built for VC-backed startups
Cons
- Only supports Delaware C-Corps
- No legal advice included
- Limited to startup-specific documents
- No ongoing legal counsel
Stripe Atlas
Start your company with Stripe's ecosystem
Pros
+ All-in-one at $500 flat fee
+ Best for international founders
+ Immediate Stripe payment setup
+ Bank account included (Mercury)
Cons
- Limited legal document depth
- No SAFE or fundraising doc generation
- Basic corporate templates
- Not ideal for complex structures
LegalZoom
Online legal services for small businesses
Pros
+ Most affordable formation option
+ Supports all entity types and states
+ Registered agent included
+ Large support team
Cons
- Templates not optimized for VC fundraising
- Upsells can increase cost significantly
- Not used by institutional investors
- Generic rather than startup-specific
Cooley GO
Free legal resources from a top startup law firm
Pros
+ Completely free document generators
+ Backed by Cooley (top VC law firm)
+ Investor-approved templates
+ Excellent educational resources
Cons
- No legal advice included
- Documents may need attorney review
- No workflow automation
- Must hire Cooley for full legal service
Gust Launch
Incorporation and equity management for startups
Pros
+ Good for angel-funded startups
+ Combines formation with equity tracking
+ SAFE document generation
+ Board meeting tools
Cons
- Smaller market presence
- Less robust than Clerky for docs
- Limited advanced legal features
- No ongoing legal counsel
Frequently Asked Questions
Should I incorporate as an LLC or C-Corp?
If you plan to raise venture capital, incorporate as a Delaware C-Corp. VCs almost universally require C-Corp structure for their investments. LLCs have pass-through taxation that creates complications for institutional investors. If you are bootstrapping and do not plan to raise VC, an LLC may be more tax-efficient.
How much does startup incorporation cost?
DIY incorporation through Stripe Atlas costs $500. Clerky charges $799. LegalZoom starts at $149 but costs more with add-ons. Using a law firm for incorporation typically runs $2,000-5,000. The state of Delaware charges a $90 filing fee plus an annual franchise tax starting at $400.
Do I need a lawyer for my startup?
Not for basic incorporation — tools like Clerky and Stripe Atlas handle standard formation documents. You need a lawyer when you raise your first priced round (Series Seed or Series A), negotiate complex term sheets, set up employee equity plans, or deal with IP licensing. Budget $5,000-15,000 for your first priced round legal costs.
What legal documents do I need before fundraising?
At minimum: certificate of incorporation, bylaws, IP assignment agreements from all founders, board consent resolutions, and a clean cap table. For SAFE rounds, you need the SAFE document itself. For priced rounds, you need a term sheet, stock purchase agreement, investor rights agreement, voting agreement, and right of first refusal agreement.
Why Delaware for incorporation?
Delaware has the most developed body of corporate case law, a specialized Court of Chancery, and investor-friendly statutes. Virtually all VC-backed companies incorporate in Delaware regardless of where they operate. VCs and their counsel are familiar with Delaware law, which reduces legal friction during fundraising.