walkercorplaw

You may find this post that I wrote helpful -- Choice of Entity for Entrepreneurs: http://bit.ly/btQa0F. Cheers, Scott (@ScottEdWalker)

As I discuss on Quora, there are significant securities-law issues that must be addressed (see http://bit.ly/egcdr5). My advice to all startups is to be very careful with these kinds of sites. I have gotten calls from several entrepreneurs who have run into problems with securities regulators. Thanks, Scott (@ScottEdWalker)

I disagree re LLC's: not only won't VC's invest in LLC's, but conversion to a C corp can be extremely complex and expensive. Indeed, it cost one of my clients about $15K to address tax issues relative to such conversion. In addition, issuing "stock options" is a nightmare with LLC's - not to mention the extraordinary complexity of operating agreements, with their complicated layer of partnership tax provisions.

the issue i was trying to raise is why the hell are entrepreneurs paying their law firms by the hour. it just rewards inefficiency, overstaffing and padding.

I think Bram’s comments and the comments below are solid. This is why I wrote the post "Top ten reasons entrepreneurs hate lawyers" (http://bit.ly/53SB5a): to promote this kind of discussion and to educate entrepreneurs. Let’s face it, the legal profession is broken. On the one hand, entrepreneurs and their companies are getting killed on fees; and, on the other hand, lawyers are being laid-off in waves and lots of law school grads can’t find jobs. On top of that, most lawyers don’t like that they are doing and service generally sucks. It’s time for a new kind of law firm.