Legal expenses are typically greater than you might anticipate, but getting your business established correctly will save you major headaches later. Depending on their experience and locale, corporate attorney rates for biotech startup expertise can range from $200 to more than $750 per hour. All attorneys should give a complimentary initial visit to discuss your situation. If they insist on charging you for an initial consultation, find another attorney.
Getting your company established and drawing up founder and employee documents and a license agreement can cost $5,000–$25,000 or more. Cost depends on the complexity of your business, the number of founders and the issues related to a technology license.
Legal assistance for closing a round of capital can be $10,000–$50,000 or more depending on the size of the round, the number of investors and other terms related to funding. Your attorney should provide you with a good estimate before beginning any transaction, and some may even give you a flat rate if the work is clearly defined. For larger deals, such as closing on a venture capital round of financing, you may be able to get a commitment for a maximum limit on legal fees. Some attorneys that specialize in startup organizations may even accept deferred compensation but may charge a higher fee and take a small equity position.
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