Clerky Review 2024 — Is It Right for Your Startup?

Incorporation is a crucial first step to launching your startup, but before you can form your company, you need to determine the right incorporation service for your business’s unique needs. But, with a number of options available, it can be difficult to identify the best choice. 

In this guide, we will walk you through Clerky, a startup-focused incorporation service, and look at what the service has to offer and how it matches up against the competitors. 

What Is Clerky?

Clerky is a legal tech company that provides online legal services and tools specifically designed for startups and entrepreneurs. The company offers automated solutions for common legal tasks, such as incorporation, generating legal documents, and managing equity. 

Clerky’s platform aims to streamline legal processes, making them more affordable and accessible for early stage businesses. The company’s services are particularly popular among tech startups and are often recommended by startup accelerators and investors in the Silicon Valley ecosystem.

Clerky At a Glance

Jump Ahead:

• Pros and Cons
• Clerky Pricing
• Standout Features
• Customer Reviews
• Clerky Alternatives

Pros and Cons of Clerky

Pros

• Several Included Services: Employer Identification Number (EIN), registered agent, and annual report filing services are all free with Clerky. 
• Post-Incorporation Resources: Clerky’s services extend beyond formation from charter amendments to board consents. 
• Fundraising Support: Clerky offers a variety of fundraising tools, including a financing checklist, signature escrow, and fully customizable safes and convertible notes.
• Hiring Help: Legal paperwork needed for employees, advisors, and consultants are all accessible on the Clerky platform. 
• A La Carte Pricing Options: If you’re looking for formation services alone, Clerky has pay-per-service pricing options available.

Cons

• More Expensive Than Some Competitors: While Clerky offers pay-per-use formation services starting at $99, to utilize their entire suite of services, you’ll have to pay considerably more. 
• Additional Legal Assistance Potentially Needed: While Clerky can help streamline some of the legal documentation requirements for your startup, you may still need the help of an attorney. 
• Additional Home State Fees: To register to do business in your home state (outside of Delaware), you will be required to pay an additional fee. 

Clerky Pricing

As a startup-centric formation service, Clerky’s features are geared towards supporting founders in launching and maintaining their startups. Their formation services offer the standard functions, one year of registered agent service, annual report filing, and EIN service. However, the real benefit of using Clerky’s service is its post-incorporation resources, such as its legal dashboard, that can help with fundraising and hiring. 

Here are Clerky’s core product offerings: 

Core Products

• Company Lifetime Package — $819 one-time fee
  • Incorporation 
  • Expedited filing fees 
  • One year of registered agent services 
  • Annual report and franchise tax reminders 
  • Post-Incorporation set-up services 
• Pay-per-Use Incorporation — $427 plus third-party fees
  • Incorporation 
  • Expedited filing fees
  • One year of registered agent services
  • Annual report and franchise tax reminders 
• Pay-per-Use Post-Incorporation Setup — $299 one-time fee
  • Action of incorporator 
  • Bylaws 
  • Initial board consent 
  • Notices of stock issuance 
  • Restricted stock purchase agreements 

Clerky also offers al la carte foreign qualification and stock plan adoption services at an additional cost. Overall, customers receive far more features and benefits from their Company Lifetime Package over the pay-per-use options.  

Clerky’s Standout Features

Clerky sets itself apart with several key offerings:

High-Quality Legal Services

Clerky was founded by startup attorneys, which influences the company’s approach to legal services from incorporation to fundraising. Rather than filing formation documents partially or in a non-standard format, Clerky completes documents in their entirety to ensure all filings are done correctly. Plus, the Clerky platform is built for startup-attorney collaboration. This allows businesses to work in tandem with their legal representatives to achieve a number of tasks on the platform. 

Name Availability Check

The first step toward forming a business is choosing a name and ensuring its availability. This guarantees the business name is distinguishable from other established businesses, avoiding hassle and legal ramifications if the business name isn’t usable. Clerky offers 100% accurate name availability checks included with its formation packages to ensure chosen business names are available before an entrepreneur moves forward with incorporation. 

Collaboration Features

Do you have multiple cofounders? No problem. Clerky’s platform allows a seamless experience for several cofounders to collaborate on tasks. As mentioned above, the Clerky platform is built to support both startups and their attorneys. While startup founders are able to use the Clerky platform without the assistance of an attorney to form their business or accomplish other business activities, the Clerky platform was created to make working with a startup attorney easier than on other platforms. 

Legal Dashboard

When startups incorporate their business with Clerky, they gain access to a legal dashboard. This dashboard allows them to do additional legal tasks, such as issuing simple agreement for future equity (SAFE) notes or convertible notes, hiring employees, or issuing stock or stock options as equity compensation. 

Startup Discounts

Clerky customers gain access to a broad array of startup discounts from top platforms. These include perks from Amazon Web Services (AWS), Y Combinator, Slack, and Microsoft for Startups Founders Hub. 

Foreign Qualification

When startups form their business with Clerky, it’s incorporated in the state of Delaware due to the business-friendly incentives offered by the state. Clerky also will help startups register to conduct business in their home state as well ensure compliance — a process called foreign qualification. 

Stock Plan Adoption

Many startups choose to offer stock or stock options as equity compensation to employees, consultants,  and advisors. Clerky’s platform allows users to adopt a stock plan and issue restricted stock or stock options to these parties easily. 

SAFEs & Convertible Notes

Clerky offers features for two financing types: SAFE and convertible notes. On the platform, startups can choose between $9 pay-per-use SAFE notes and $19 pay-per-use convertible notes or unlimited issuances for $99 per six-month period. 

New Hire Paperwork

Clerky customers gain access to an array of new hire templates for employees, consultants, and advisors. These include offer letters, consulting agreements, advisor agreements, and confidential information and invention assignment agreements. 

Equity Compensation

In addition to stock plan adoption, Clerky’s platform includes everything startups need to issue stock or stock options to various parties. This includes templates for board consents, restricted stock issuance, regular stock option issuance, and early exercisable stock option issuance.

Clerky Reviews

Comparing pricing and features is important, but hearing from customers who have actually used the service is invaluable to understanding the customer experience you can expect. 

While there aren’t a large number of reviews available for Clerky online, there were a few customers sharing both positive and negative experiences with the service. 

Here are some verified customer reviews from Trustpilot and G2 about Clerky: 

“Excellent service!!! Recommend everyone! I have just registered a Delaware C-Corporation with them. Clerky provides excellent customer support and incredibly valuable services. I wish Clerky many good clients and prosperity in their business.”

“Hidden charges, unscrupulous business practices, incredibly late with everything.”

“Quick and easy way to incorporate”

Clerky Alternatives

Clerky may be a popular choice for startups looking for a startup-focused formation and legal services platform. However, before settling on this provider, it’s important to consider the alternatives to ensure Clerky is the right fit for your business. Firstbase, Northwest Registered Agent, and LegalZoom are reputable Clerky alternatives — all of which offer different features, price points, and advantages. Here’s how they compare to Clerky. 

Firstbase vs. Clerky

Firstbase and Clerky are both modern, tech-focused company formation services, but they cater to slightly different needs. Firstbase offers a more comprehensive suite of services, including ongoing compliance, tax, and banking support, making it a good choice for entrepreneurs who want an all-in-one solution. Clerky, on the other hand, specializes in legal document automation for startups with a particular focus on the needs of tech companies and those seeking venture capital (VC) funding.

While Firstbase has a broader scope, Clerky’s strength lies in its deep understanding of startup legal needs — especially in the tech sector. However, Firstbase may be more suitable for businesses that need ongoing support in various operational areas beyond just legal document preparation.

Northwest Registered Agent vs. Clerky

Northwest Registered Agent and Clerky serve different segments of the business formation market. Northwest Registered Agent is a traditional registered agent service that has expanded into business formation and compliance. The company offers a wide range of services across all 50 states and is known for its privacy protection and personalized customer service.

Clerky, in contrast, is a more specialized service that focuses on the specific legal needs of startups — particularly in the tech industry. While Northwest Registered Agent can handle formations for various business types across industries, Clerky’s services are tailored for startups that may need specific documents for fundraising or have plans for rapid scaling. Northwest Registered Agent might be a better fit for small businesses seeking ongoing registered agent services and compliance support while Clerky excels in providing startup-specific legal documents and automation.

LegalZoom vs. Clerky

LegalZoom is a well-established, general-purpose legal services platform that caters to a wide range of legal needs for both individuals and businesses. It offers services for various legal matters, including business formation, intellectual property, and personal legal documents. LegalZoom’s broad scope makes it suitable for a diverse clientele, but this can sometimes result in less specialized services for specific niches.

Clerky, on the other hand, is highly specialized in serving the legal needs of startups — particularly in the tech sector. While LegalZoom provides a one-size-fits-all approach to business formation, Clerky offers tailored solutions that align with the specific requirements of tech startups and the expectations of VC investors. Clerky’s focused approach often results in more relevant and specialized document preparation for startups while LegalZoom’s strength lies in its ability to handle a wider variety of legal needs beyond just business formation.

Is Clerky Right For Your Startup?

Clerky offers specialized legal services tailored for tech startups, but its suitability depends on your specific needs and circumstances. It’s important to consider your business type, growth plans, and budget when deciding.

It’s particularly well-suited for:

• Tech startups planning to raise VC funding
• Founders who need quick, automated legal document preparation
• Early stage companies that require standard startup legal documents

However, it may not be the best fit if:

• You’re starting a traditional small business not seeking VC funding
• Your business requires extensive legal counsel

The bottom line? Clerky excels in providing efficient, startup-focused legal services — particularly for tech companies in the early stages of growth. Its automated document preparation and familiarity with VC requirements make it a strong choice for tech founders. Additionally, the platform’s streamlined approach can save time and reduce errors in crucial legal processes.

However, startups should carefully consider their long-term needs. While Clerky’s specialized services are valuable for many tech startups, businesses with more complex legal requirements or those outside the tech sector might find more comprehensive solutions elsewhere. Ultimately, you should base this decision on your startup’s specific goals, industry, and anticipated legal needs.

Frequently Asked Questions