You can have some fees deferred. but $3k per person for computers is $12k... company formation is $5-10k, convertible note is $5-10k, terms of service, IP assignment, etc. Patents are $10-50k depending on how far you take them.
I've got a reputable SF lawyer (does YC companies to boot) to do formation+note+etc for ~$3k. Cooley/WSGR/etc will all look for $25k (and sometimes help by deferring), which IMO is outrageous. It's outrageous not because it's incorrect given the market, but they're value isn't high enough to justify the cost. If you're negotiating a Series C, I can see their value but not when you're just starting. Early stage law is fairly boiler plate, that is, unless of course patents come into play.
$120k is high, but not outrageous.