I've just registered my new startup with the government so now the company is officially incorporated! (yippee!)
I would now like to make a loan of about $5,000 to the company with my personal funds to get it off the ground. I consulted a lawyer who estimated that it would cost $1000 in legal fees to write up the paperwork. Is there a basic convertible debt term sheet that I could use instead? I just can't justify spending $1000 of the $5,000 that I'm putting in on lawyers fees upfront.
Any suggestions? Thanks!
Legal Seed Funding Budget Legal Documents Debt
Nolo Press has some simple forms that will do the trick. You don't need anything fancy.
A grand for a simple one page note is ridiculous. As Tim mentioned, time for a new lawyer.
I'm no lawyer, but I don't think you should even bother doing paperwork right now.
I'd focus on product and customers instead of nailing down specifics on this. Also, since you own 100% of the company right now, how will this $5,000 even convert into debt, since you already own 100%? You might not even need to do the paperwork... instead maybe just file it in QuickBooks and talk to an accountant instead. In summary, I would focus on making sure you actually have a business - a product customers are willing to pay for - before worrying about stuff like this, especially given it's only $5,000. You can always sort this out later once you've made it.