Guy Kawasaki explains the $4,824.13 in legal fees for Truemors

blog.guykawasaki.com

10 points·brett··7 comments

A small startup is going to find something better to do with five grand. A millionaire is going to cover his ass.

Honestly, I don't know why he even bothered to make a post explaining what he did.

I emailed him and asked him to. (Well, others asked too.) We hear the same message from experienced investors over and over: "don't skimp on the legal fees." Since newbie entrepreneurs tend to disagree about this, I wanted to hear more about why they give out this advice.

Mark Fletcher said something similar after he sold his first startup. These guys should just realize they're in a different position than a lot of founders, because they have assets to risk.

He says: "Lawyers are like oil filters: You can pay now or you can pay later."

Yes, but lazy evaluation seems better in this case, because "later" doesn't always happen for startups. Why pay unless you know you need it?

For me this 5000 would directly translate into fewer resources going into creating the product. I think I'll pass.

Yea having to rebrand everything and go to court because you didn't file for a company, service marks, or protect your identity during the early stage is much more fun.

Yea lawyers cost, but it's better than a best buy warranty. Pay now, pay much more later.

It cost me $55 to set up an LLC in Oregon. I am not seeking investors at the moment, and when/if I do, they can cover the costs of moving to a C corporation.

I still want to understand the breakdown of what all that money goes for.

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