The formation of the corporation using an attorney, which I do recommend involves the following:
(1) certificate of incorporation, including language to maximize indemnification rights, bylaws, organizational minutes
(2) shareholder agreement
(3) offering memo to bring in investors
The first item should be doable for $500-$600
The second item will depend on what the role of the investors is. If it is just passive minority investment, this may not be necessary. If they will have an active role and will have a substantial ownership interest, then you will need this and it can be fairly expensive depending on what is required. Some issues would be what happens on death or disability, if a person is coming in as an officer can he or she be kicked out at the whim of the majority or does the shareholder agreement require that shareholders and directors vote for the person to hold the office agreed to. This could be in the range of $1,500 to $2,500 depending on what is needed.
The last item is probably the most expensive depending on (1) the nature of the investors - are they accredited investors, (2) how many are there - more or less than 35 in number, and (3) how much you are seeking to raise. If this is going to be a small group of accredited investors raising a modest amount of money, then you can probably do it with a relatively short offering memorandum and a copy of your business plan. This could be less than $2,000. If you are raising substantial sums, then you are looking at a proper offering memorandum and that could run $10,000 to $20,000.
A lot depends on the amount you are raising, the number of investors and how sophisticated they are. The offering memo is basically your protection from being sued in the future if things go badly. It lays out all the risks, the competitive environment, the background of the principals and verification that the person can sustain a total loss of their investment.
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