Why does Clerky charge a setup fee for companies formed off of Clerky?
Clerky charges a one-time $99 setup fee to companies formed off of Clerky.
If a company is not fully setup or incorrectly setup, doing additional legal paperwork may create serious problems that can only be resolved, if at all, by an experienced attorney.
For example, it is common for other services to only facilitate the incorporation of a company, without facilitating the other tasks necessary for a startup to be properly formed, such as appointing directors and officers, issuing stock to founders, and protecting company IP. If your company hasn't issued stock to the founders yet, but then issues stock to an advisor, that advisor would then own 100% of the company and have full control of it.
If you have a company formed off of Clerky, we will run your company's paperwork through a checklist of common formation issues. If the checklist suggests a potential issue, we will first see if we have a template you can use to address the issue, or else offer a referral to an experienced startup attorney.
We charge a setup fee because of the time it takes us to run your company's paperwork through this checklist.