It may be unfeasible for some startups to hire lawyers due to budget constraints. In this article, we explore several online legal platforms that can provide a cost-effective solution for startups with limited resources. We discuss when to use these platforms, their limitations, and recommend two trusted platforms for startups to consider.
When to Use an Online Legal Platform
Hiring legal counsel is typically the best option for startups. A good startup lawyers understand the nuances of your specific situation and can craft custom documents to meet your needs.
That being said, there are a few scenarios where using online platforms may be beneficial:
- Simple legal needs. If your startup has relatively straightforward legal requirements, such as incorporating a company, issuing stock options or drafting basic agreements, online platforms can streamline the process. These platforms offer templated documents that are suitable for standard legal needs.
- Familiarity with the process. If you or someone on your team has a good understanding of the legal requirements and processes involved in incorporating and drafting legal documents, using online platforms can assist with the paperwork.
- Supplementing legal advice. You can also use online platforms as a complement to legal advice. Leverage these platforms to draft initial documents. Legal counsel may be willing to charge a review rate to provide any necessary modifications or additions from the drafts.
For more complex legal issues, it’s advisable to consult with an experienced startup lawyer who can provide customized guidance and ensure compliance with relevant laws and regulations.
Which Platforms to Use
If you plan to use an online platform for legal services, we highly recommend AngelList or Clerky. We have worked with both companies extensively and have a high degree of confidence in their work product. We strongly advise against wasting your time or money working with any other company.