Incorporating your business is a milestone, but it’s just the beginning. Once you’ve established your company as a Delaware corporation (or other entity), there are essential next steps that will set your business up for future growth, investment, and compliance. Here’s a checklist to guide you through the critical actions to take after incorporation.

1. Complete Founders’ Stock Issuances

Founders typically receive shares at a low price close to the time of formation. This process must be finalized promptly to avoid tax consequences, as the IRS may consider the difference between FMV and purchase price as taxable compensation. Ensure all stock issuance documents are signed, payments are received and documented, and records are maintained.

2. File 83(b) Elections

If founders or employees receive stock subject to vesting, an 83(b) election can lock in tax treatment at the time of grant rather than at vesting. This election must be filed with the IRS within 30 days of receiving the stock—without exception.

3. Set Up a Data Room

Investors expect organized records during due diligence, including formation documents and stock issuance records. Start a secure, well-organized data room from day one to streamline future fundraising and legal reviews, avoiding delays down the line.

4. Apply for an EIN

An Employer Identification Number (EIN) is required for tax reporting, hiring, and opening a bank account. You can apply for an EIN directly through the IRS website; this is a critical step in establishing your business’s formal tax identity.

5. Open a Business Bank Account and Get a Credit Card

Separate business and personal finances to maintain corporate liability protection. A dedicated bank account and credit card in the company’s name prevent personal liability risks and help maintain clean financial records. If you fund the company personally, track these transactions carefully.

6. Register for State and Local Compliance

Most states require foreign (out-of-state) corporations to register before conducting business. Use a registered agent service to simplify this process and confirm any additional requirements, such as state or local business licenses.

7. Secure Business Insurance

Start with general liability and workers’ compensation insurance as the business begins operations and expands its workforce. Insurance needs will grow with the business, so consult an insurance broker who understands startup needs.

8. Prepare to Hire

Employment regulations are complex, so consider working with a payroll or HR provider. For DIY founders, the federal government provides an employment guide, but outsourcing can help ensure compliance with local, state, and federal employment laws.

9. Establish a Capitalization Table

A capitalization table (cap table) tracks equity ownership, including stock, options, and warrants. Keep an updated cap table to understand ownership structure and facilitate strategic decision-making. Cap table management platforms are increasingly popular for streamlined accuracy.

10. Consider Hiring an Accounting Service

Bookkeeping, accounting, and tax planning will grow in complexity. While some founders manage these tasks independently, accounting services can often provide affordable, high-quality support tailored to startups. Seek recommendations to find a service provider experienced in handling startup finances.

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