Is hiring a lawyer necessary when incorporating a startup?

What is "expensive?" Creating a business entity is as simple as completing and filing (and paying for) the appropriate paperwork. The actual legal "heavy lifting," rather, is drafting appropriate operating agreements, shareholder agreements, bylaws, and other charter-type documents which are almost never cut-and-paste.

Different attorneys with different levels of experience in different parts of the country charge different rates. There are a variety of legal directories online (e.g., Avvo) where you can search for attorneys who are experienced and in your price-range.