What are the legal implications and risks of incorporating a U.S. based startup through Stripe Atlas?

I don’t think there are any “legal implications” by using Stripe Atlas, but there are certainly risks – namely that companies will end up spending much more money than they originally expected.

The $500 fee charged by Stripe does not include any of the important post-incorporation documents necessary for Delaware corporations (bylaws, action of incorporator, notice of stock issuance, 83(b) election & filing etc.). Atlas boasts a relationship with Orrick, but legal representation is not part of the $500. As such, a company would have to pay additional legal fees for one of the most expensive law firms in the country. The legal fees can end up costing in the thousands when all is said and done.

An alternative to Stripe Atlas is LawTrades. We’re a legal marketplace that routinely helps early stage companies with their business formation needs in the U.S. Our incorporation prices are similar to Stripe Atlas, but companies have the chance to turn to us from the beginning of their company’s lifespan all the way to the end at a fraction of the price of big law firms.

The lawyers on our site can help you with incorporating AND with post-incorporation formalities. As your company grows, you’ll be able to return to LawTrades for your employment contracts, fundraising documents, and immigration visas. For some people Stripe makes sense, but realistically you’ll need more than just the initial incorporation filings. Hope that helps and best of luck with the new business.