How to Choose Legal and Incorporation Tools

A guide to selecting the right platform for incorporating your startup, managing compliance, and handling ongoing legal administration. Covers incorporation workflows, registered agent services, ongoing compliance, and the tradeoffs between automated platforms and traditional law firms.

Key Decision Criteria

Incorporation Speed and Completeness

High Priority

Stripe Atlas ($500 one-time) provides a complete incorporation package: Delaware C-Corp, EIN, bank account with Silicon Valley Bank or Mercury, and a founders' stock purchase agreement. Clerky ($799+) offers attorney-drafted documents with more customization for complex founding teams. Firstbase ($399+) covers Delaware LLC or C-Corp with registered agent services. All three are faster than working with a traditional law firm.

Post-Incorporation Support

High Priority

Incorporation is day one — ongoing compliance is the real challenge. Stripe Atlas includes a dashboard for annual franchise tax filing and reminders. Clerky provides post-incorporation document templates for board consents, equity issuance, and contractor agreements. Firstbase offers a compliance calendar and registered agent services. Evaluate what happens after incorporation, not just the filing itself.

Document Quality and Customization

Medium Priority

Clerky's documents are drafted by top Silicon Valley startup attorneys and used by YC companies — the gold standard for legal correctness. Stripe Atlas uses standard templates that work for most cases but offer limited customization. Firstbase provides basic incorporation documents. If you have multiple co-founders with unusual equity splits or IP assignment needs, document quality matters more.

Questions to Ask Yourself

Are you a solo founder or do you have co-founders?

Solo founder: Stripe Atlas is the fastest path — standard documents work perfectly for single-founder companies. 2 co-founders with equal split: Any platform handles this standard case well. Complex founding team (3+ founders, unusual equity splits, IP from prior work): Use Clerky for its customizable attorney-drafted documents, or work with a startup attorney directly. The extra cost prevents expensive disputes later.

Do you plan to raise venture capital?

Yes: Incorporate as a Delaware C-Corp — all three platforms support this and it's what investors expect. Stripe Atlas and Clerky are both used by thousands of VC-backed companies. No (lifestyle business or bootstrapped): A Delaware LLC might be more tax-efficient. Firstbase handles LLC formation. Consult a tax advisor before choosing your entity type.

Do you need ongoing legal support or just incorporation?

Just incorporation: Stripe Atlas gives you the best all-in-one package for $500 with banking included. Incorporation plus ongoing documents: Clerky's library of post-incorporation templates (board consents, NDAs, advisor agreements) saves significant legal fees. Full ongoing support: None of these platforms replace a startup attorney for complex issues like fundraising negotiations, IP strategy, or employment law.

Red Flags to Watch For

Incorporating as an LLC when you plan to raise venture capital

VCs almost universally require Delaware C-Corps. Converting from an LLC to a C-Corp mid-fundraise costs $2,000-5,000 in legal fees, takes weeks, and can delay your round. If there's any chance you'll raise institutional capital, incorporate as a Delaware C-Corp from day one.

Skipping a founders' agreement because you trust your co-founder

Every startup attorney has stories of co-founder disputes that destroyed companies because there was no written agreement on equity split, vesting, IP ownership, or departure terms. Stripe Atlas and Clerky both include founders' agreements — sign them before writing a line of code together.