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!
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.