DO NOT exchange equity for legal services. Obviously legal fees can be expensive, especially in NY and CA. Therefore, if your start-up does not have sufficient funds allocated for legal fees or the Firm offers to provide the legal services in exchange for equity consider alternative options.

For example, most law schools will have in-house small business clinics, where law students, who are generally given special permission by the State Supreme Court to practice before being admitted to the Bar, provide free legal services under the supervision of a professor licensed in the State.