Stripe Atlas vs. Clerky: Which Is Right for Your Startup?
Starting a business can feel like navigating a maze, especially when it comes to legal and financial hurdles. Two popular platforms, Stripe Atlas and Clerky, promise to simplify this process, but which one is the better fit for your specific needs? This comparison will break down the features, costs, and overall value of both services.
Stripe Atlas is known for its comprehensive approach, offering incorporation, banking, and access to payment processing all in one package. It aims to be a one-stop-shop for early-stage startups. On the other hand, Clerky focuses primarily on legal incorporation and compliance, providing a more streamlined experience for managing legal documents.
Whether you’re a tech startup, a small business, or a solopreneur, choosing the right platform is crucial for setting a strong foundation. This in-depth analysis of Stripe Atlas vs. Clerky will help you make an informed decision, saving you time, money, and potential headaches down the road. Let’s dive in and find out which service reigns supreme for your entrepreneurial journey.
Specs at a Glance:
| Feature | stripe atlas | clerky |
|---|---|---|
| Formation of Delaware C-Corp | Yes | Yes |
| EIN Application | Yes | Yes |
| Registered Agent Service | Yes | Yes |
| Standard Legal Documents | Yes | Yes |
| Bank Account Introduction | Yes | Yes |
| Stock Option Plan | Yes | Yes |
| Cap Table Management | Limited | Comprehensive |
| Ongoing Compliance Support | Limited | Yes |
| Legal Document Automation | Limited | Extensive |
| Investor Communications | No | Yes |
| Integration with Stripe | Yes | No |
| User Interface | Simple | Advanced |
Feature-by-Feature Breakdown
Incorporation Services
- Stripe Atlas: Offers incorporation services, primarily for Delaware C-corps. This includes legal formation, EIN acquisition, and registered agent services. It’s a streamlined process, but may not be suitable for all company structures or states.
- Clerky: Provides incorporation services for various entity types and states, including LLCs and C-corps. They offer a more customizable approach with a focus on compliance and ongoing legal needs. It can be more complex to set up initially.
- Winner: Clerky
Legal Document Automation
- Stripe Atlas: Provides templates and automation for essential legal documents like bylaws and stock purchase agreements. This simplifies legal tasks but might not cover all specific needs.
- Clerky: Specializes in automating legal documents, offering a wider range of templates and customization options. They are known for generating high-quality, legally sound documents.
- Winner: Clerky
Banking Integration
- Stripe Atlas: Offers a direct integration with Stripe. This makes setting up a payment processor very easy.
- Clerky: Does not offer banking integration.
- Winner: Stripe Atlas
Ongoing Compliance Management
- Stripe Atlas: Offers basic compliance reminders and tools to help with ongoing legal obligations. It is less comprehensive than Clerky.
- Clerky: Provides robust compliance management tools, including automated filings and reminders for ongoing legal and regulatory requirements.
- Winner: Clerky
Cap Table Management
- Stripe Atlas: Offers cap table management tools.
- Clerky: Offers cap table management tools.
- Winner: Tie
Funding Support
- Stripe Atlas: Offers access to exclusive funding opportunities.
- Clerky: Does not offer access to funding opportunities.
- Winner: Stripe Atlas
International Expansion Support
- Stripe Atlas: Primarily focused on US-based incorporation and may not be ideal for companies with immediate international expansion needs.
- Clerky: Offers some support for international expansion through its compliance and documentation features, but it’s not a primary focus.
- Winner: Tie
Pricing
- Stripe Atlas: Has a one-time fee for incorporation, plus ongoing fees for registered agent services.
- Clerky: Offers a variety of pricing plans based on the features and services needed.
- Winner: Tie
Winner by Category:
| Category | Winner |
|---|---|
| Ease of Use | stripe atlas |
| Feature Set | clerky |
| Cap Table Management | clerky |
| Ongoing Compliance | clerky |
| Integration with Stripe | stripe atlas |
What They Have in Common:
- Delaware C-Corp Formation: Both Stripe Atlas and Clerky facilitate the formation of a Delaware C-Corp, a common structure for startups seeking investment.
- Ein Application: Both platforms assist with the application for an Employer Identification Number (EIN) from the IRS, essential for operating as a business.
- Registered Agent: Both offer registered agent services, fulfilling the legal requirement of having a designated agent for receiving official correspondence.
- Standard Legal Documents: Both provide templates and assistance with creating standard legal documents required for incorporation.
- Bank Account Introduction: Both can help connect you with banks to set up a business bank account.
Stripe Atlas vs Clerky Buying Guide
Cost and Fees
Stripe Atlas offers a comprehensive package, including incorporation, registered agent services, and initial legal consultations, for a one-time fee. This can be attractive for its upfront simplicity. However, ongoing costs like annual fees for registered agent services and potential legal expenses can add up. Clerky, on the other hand, typically charges for specific services and ongoing needs. This can be more flexible, allowing you to pay only for what you use, but the costs can be less predictable. Consider your long-term needs and budget when comparing these options.
Incorporation Process & Speed
Both Stripe Atlas and Clerky streamline the incorporation process, making it easier than navigating the process independently. Stripe Atlas handles the entire incorporation, including filings and obtaining an EIN. Clerky focuses on automating the creation of legal documents and guides you through the process, but you may still need to handle some filings yourself or use a third-party for certain steps. Stripe Atlas is typically faster for the initial setup, aiming to incorporate businesses within a matter of days. Clerky’s speed depends on your actions and the chosen filings.
Legal Support and Documentation
Stripe Atlas provides a curated set of legal documents and templates tailored for startups, along with access to legal advice from their network of providers. This can be valuable for startups without in-house legal expertise. Clerky focuses on automating the creation of legal documents, such as founder agreements and stock option plans. While it offers templates, it may require you to have some legal understanding or consult with an attorney to customize the documents effectively. Consider the level of support you need.
Ongoing Compliance and Maintenance
Both services offer assistance with ongoing compliance. Stripe Atlas provides reminders and guidance on annual filings and other requirements. Clerky automates certain compliance tasks, such as generating meeting minutes and managing cap tables. Stripe Atlas’s comprehensive approach can be beneficial for ensuring you stay on track with all legal and regulatory obligations. Clerky provides tools and guidance, but you may need to take more ownership in staying compliant. Evaluate how much support you need.
Target Audience and Suitability
Stripe Atlas is well-suited for technology startups and businesses looking for a streamlined, all-in-one solution. Its focus on speed and simplicity makes it ideal for founders who want to get up and running quickly. Clerky is a good fit for startups that have a more hands-on approach to legal matters or those who want more control over their legal documents. It’s often favored by founders with some legal knowledge or those already working with a specific legal counsel. Consider your technical skill.
Ease of Use and User Experience
Stripe Atlas is designed for ease of use, with a straightforward interface and a focus on minimizing the complexities of incorporation. Its guided process and pre-built templates simplify the experience. Clerky’s platform may require a bit more understanding of legal concepts, but it allows for greater customization. The user experience is generally positive for both services. Consider your comfort level with legal documentation and how much you prefer a guided approach. Evaluate your personal preferences.
Who Should Buy What?
Buy stripe atlas If…
- You are looking for a simple, streamlined process to get your company incorporated quickly.
- You want a strong integration with the Stripe platform, especially for payment processing.
- You are comfortable with a more hands-off approach to ongoing legal and compliance matters.
- You are a non-US founder looking for a straightforward entry point to the US market.
Buy clerky If…
- You require a comprehensive platform for managing your company’s legal documents and cap table.
- You need robust tools for ongoing compliance and investor communications.
- You want a high degree of automation for generating and managing legal documents.
- You value detailed guidance and support throughout the incorporation and post-incorporation processes.
Frequently Asked Questions
What is Stripe Atlas?
Stripe Atlas is a comprehensive incorporation service designed specifically for startups. It helps entrepreneurs incorporate their companies in the United States, providing a range of services like legal document generation, registered agent services, and access to a network of legal professionals. It aims to simplify the complex process of launching a business. It provides a streamlined approach for forming a U.S. based company.
What is Clerky?
Clerky is a platform that automates the creation of legal documents for startups. It assists with incorporation, fundraising, and ongoing compliance. Clerky is a more hands-on approach, allowing founders to create and manage legal documents themselves. It focuses on providing tools and templates to simplify the legal process for startups. It aims to reduce legal costs and improve efficiency.
Which service is faster for incorporation?
Stripe Atlas typically offers a faster incorporation process compared to Clerky. Stripe Atlas aims to incorporate businesses within a matter of days, offering a streamlined process. Clerky allows you to handle the incorporation, so the speed depends on your actions and the filings you choose. Stripe Atlas’s speed makes it popular for startups looking to get started quickly.
What kind of legal support does Stripe Atlas provide?
Stripe Atlas offers a curated set of legal documents and templates, along with access to legal advice from their network of providers. This provides startups with access to legal expertise without hiring a lawyer. Their support helps with various legal needs. They provide support for legal matters.
Does Clerky offer any ongoing support after incorporation?
Yes, Clerky offers ongoing support by automating compliance tasks, such as generating meeting minutes and managing cap tables. They also provide tools and guidance to help businesses stay compliant with regulations. Clerky’s support streamlines ongoing legal requirements. This helps companies manage their legal needs.
How do the costs of Stripe Atlas and Clerky compare?
Stripe Atlas has a one-time fee for incorporation, with additional costs for ongoing services. Clerky often charges for specific services and ongoing needs, which can be more flexible, but costs can vary. Consider your long-term needs to choose the best option. Both offer options for various financial situations.
Which service is better for international founders?
Stripe Atlas is particularly well-suited for international founders looking to incorporate in the US, providing a streamlined process and support for non-US residents. Clerky can also be used by international founders, but may require more hands-on effort. Stripe Atlas offers more support for international businesses. Their ease of use is a plus.
Final Verdict
Stripe Atlas offers a more comprehensive, streamlined experience, particularly attractive for startups prioritizing speed and ease of use. While Clerky provides valuable tools and automation, Stripe Atlas’s bundled approach and integrated legal support give it a slight edge in overall value for a wider range of early-stage companies. Ultimately, the best choice depends on individual needs and preferences.
Winner: Stripe Atlas