[Direct answer]In the Beijing area, there is no unified fee standard. It is usually determined through negotiation between law firms and clients based on the scope of services, workload, and complexity. The equity structure design for start-up companies is part of specialized legal services or annual legal advisory services. There are three common charging methods: first, charging by project, such as one-time fees for equity structure design, option incentive plans, and the establishment of shareholding platforms; second, charging annual legal advisory fees, which typically include consultation and document review hours within the agreed scope; third, charging by the hour or in stages. The main factors affecting fees include the company's development stage and the complexity of its equity structure, whether it needs to establish a shareholding platform and an option pool, whether it involves supporting documents for multiple rounds of financing, whether it involves cross-border structures and foreign exchange arrangements, and whether it needs to issue formal legal opinions. Some law firms distinguish between basic services and value-added services, charging separately for work outside the agreed scope. It is recommended to clarify the service content, deliverables, charging methods, and settlement points before entrusting, sign a written contract, and request formal invoices.

I. Problem background and typical scenarios

Startup companies often face issues such as equity distribution, control arrangements, and incentive design in their early stages, yet they often lack both funding and experience. Typical scenarios include: several partners with different investments and contributions needing to design equity ratios and decision-making mechanisms; founders worried about losing control after equity dilution needing to arrange voting rights and concerted actions; companies planning to implement employee stock option incentives needing to design option pools, exercise prices, and exit mechanisms; and introducing investors requiring cooperation with due diligence and financing documents. Companies owning intangible assets such as trademarks, copyrights, and patents need to clarify ownership and investment arrangements. With a high concentration of startups in Beijing, the demand for related legal services is significant. Entrepreneurs often care about "how much it costs," but what matters more than price is whether the scope of services matches their needs—if agreements are vague, additional charges or insufficient delivery may arise later. Therefore, understanding the pricing logic and influencing factors can help companies budget reasonably and choose suitable service methods.

II. Key points of dispute

First, whether the design of the equity structure belongs to a special service or is within the scope of long-term legal consulting. Second, how to choose between hourly, annual, and fixed-fee billing, and the respective circumstances in which each is applicable. Third, how to define the scope of services and deliverables, and how to handle work outside the scope. Fourth, the impact of cross-border structures and foreign exchange arrangements on fees. Fifth, whether equity incentives and financing support are charged separately. Sixth, the regulatory requirements for power of attorney contracts and bills. These issues directly affect the cost expectations and service experience of enterprises.

III. Professional analysis by Henglue Lawyers

Henglue Lawyers advise that understanding the fees charged by legal consultants should focus on three dimensions: "scope, complexity, and results". First, service scope. Equity structure design is often interrelated with corporate governance, incentive arrangements, intellectual property ownership, and financing support. The broader the service scope, the greater the workload and corresponding fees. Enterprises should clarify the specific problems to be solved and the documents to be delivered in this commission. Second, complexity. Cases involving multiple rounds of financing, holding platforms, option pools, cross-border structures, or foreign exchange arrangements pose significantly higher professional challenges and workloads; simple internal equity adjustments are relatively straightforward. Third, delivery results. Whether a legal opinion is provided, whether it includes follow-up implementation and cooperation with industrial and commercial changes, and whether training is provided will all affect the quotation. Fourth, the importance of intangible asset ownership. The ownership of intangible assets such as trademarks, copyrights, and patents in start-up companies is often a core issue in equity structure design. In a case handled by Henglue Lawyers, Zhang * and Jin * jointly invested to establish a company, agreeing that the equity would be held in a 3:7 ratio and the intangible assets would be owned by individuals. The two obtained registered trademarks including artworks and text/letters, which were used by the company. After Jin *'s death, his eldest son inherited the equity and disputed with Zhang *, claiming that the artworks registered under Zhang *'s name should belong to the company. Zhang * engaged our lawyers to represent him, who argued that the artworks were independently created by Zhang * and registered as non-work-related works. Through sorting out key evidence from numerous documents, the plaintiff eventually withdrew the lawsuit, and Zhang *'s rights were safeguarded. This case shows that making clear arrangements for intangible asset ownership and equity in the early stages of a startup can effectively avoid future disputes, and such arrangements themselves are an important value of legal consultants. Fifth, commission norms. Regardless of the charging method, a written commission contract should be signed, clarifying the service scope, personnel, timeframe, fees, and payment milestones, and formal receipts should be obtained to avoid disputes arising from verbal agreements. This case was handled by Beijing Henglue Law Firm.Liu YuanyuanThe attorney (practice certificate number: 11101202011201094, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action suggestions: First, sort out the actual needs of the enterprise and clarify the problems that need to be solved and the deliverables; Second, choose a charging method based on the needs, such as per piece, per year, or per hour; Third, specify the scope of services, the charging rules for work beyond the scope, and the payment milestones in the contract; Fourth, request formal invoices and keep service records. For related services, please refer to the following for referenceBusiness and contract disputes in enterprisesAndIntellectual property protection and corporate lawColumn. Legal basis: The provisions on lawyers' service fees in the Law of the People's Republic of China on Lawyers (amended in 2017), and the provisions on the articles of association and shareholders' rights in the Company Law of the People's Republic of China (amended on December 29, 2023 and implemented on July 1, 2024). The specific fees shall be subject to the consultation between the law firm and the client and the current fee management regulations.

5. Henglu Law Firm's Reminder

Firstly, there is no unified standard for legal consultants' fees, which depend on the scope of services and the complexity of the case. Secondly, what matters more than the price is whether the scope of services and the deliverables are clearly defined. Thirdly, the ownership of intangible assets and the arrangement of equity should be clarified at the early stage of the startup. Fourthly, a written contract of entrustment and formal invoices are the basis for protecting the rights and interests of both parties. If you want to learn about the equity structure of startups and legal consultancy services, you can contact us through the following channels:Business and contract disputes in enterprisesAndIntellectual property protection and corporate lawFor column consultation, please contact us.Beijing Henglu Law Firm.

VI. Frequently Asked Questions

Q1: How much does it usually cost to design an equity structure?

There is no fixed price. The fee needs to be determined through negotiation based on factors such as the scope of services, the complexity of the equity structure, whether there are holding platforms involved, options pools, and financing support. Simple internal equity adjustments are relatively low in cost, while those involving cross-border structures or multi-round financing designs are relatively high. It is recommended to clarify your needs first before requesting a quote.

Q2: Is it charged per project or per year?

Both are available, depending on the needs. One-time equity structure design and option plans are usually charged on a project basis; ongoing contract review, daily consultation, and system construction are often charged on an annual basis by legal advisors. Enterprises can also combine the two, with basic services charged annually and special projects agreed upon separately on a project basis.

Q3: What services are included in the fee?

It should be specified item by item in the entrustment contract, such as the design of the equity plan, the drafting of the company's articles of association and shareholder agreements, option incentive documents, the establishment of a holding platform, cooperation in industrial and commercial changes, and necessary training, etc. Specifying the deliverables and working hours can effectively avoid additional charges later due to different understandings of the scope of services.

Q4: How is it calculated if it exceeds the service scope?

Generally, this is charged separately. When entrusting a lawyer with a case, it is necessary to agree on the criteria for determining whether the work exceeds the scope of the original contract, the billing method, and the approval process. For example, the lawyer may charge by the hour or require the client to sign a separate contract for the additional work. The company may request the lawyer to inform them in advance and provide a cost estimate before the work is expected to exceed the scope of the original contract, so that the company can arrange its budget accordingly.

Q5: How to choose an appropriate price?

It's not advisable to focus solely on low prices. Instead, you should comprehensively compare the scope of services, the experience of the lawyers handling the case, the response mechanism, and the quality of delivery to choose a solution that matches your own needs. You can request service cases and quotation details from similar enterprises, and protect your rights through written contracts and formal receipts to avoid compromising on service quality due to low prices.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, so as to avoid missing the statutory time limit. →Intellectual property protection legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in time.