Some people warned me about LegalZoom and how it's a scam, but some other people told me it should should be ok for simple incorporation, so we decided to give it a try.
First, we chose Delaware for the incorporation because of the following reasons:
- Flexible Laws.
- No Wildcard Juries.
- Precedence = Less Litigation
- It’s almost free
We decided to go with c-corp instead of s-corp or llc. My partner said he is going to raise money from his Angel and VC friends pretty soon. Since most of them require the company they invest in to be c-corp, it made sense to go with c-corp.
When we got to the equity structure page, we set up the equity structure to be 10% common stock and 90% preferred stock. Then we assigned 20% of preferred stock for me and 20% of preferred stock for him.
On the directors and officers page, LegalZoom suggested the President and Secretary to be two different people, so we put down my partner as the President and me as the Secretary and Treasurer.
On the contribution page, I put down $5,000 as my cash contribution.
So that was about it, and the total came out to be around $700 (there were about 5 more pages, but they were just LegalZoom trying to sell their shit to us). Now we will see if it goes through smoothly or if we are gonna run into issues like other people warned us... If it goes through smoothly, $700 would be virtually nothing compared to what I would have to pay a real lawyer to handle the incorporation.