List Of Business Tasks For Startups Template

In plain language: Documents and confirms that the company has been legally incorporated or organized in the appropriate state or jurisdiction, with a registered agent designated.

Common mistake: Incorporating in Delaware for perceived prestige without considering the added cost of foreign qualification in the state where the business actually operates — doubling annual fees and compliance obligations.

In plain language: Confirms that an EIN has been obtained from the IRS and that any required state tax registrations — sales tax, payroll tax, franchise tax — have been completed.

Common mistake: Treating the EIN as the only tax registration needed. Many states require separate registrations for payroll withholding, sales tax, and franchise tax — each with independent deadlines and penalties.

In plain language: Confirms that the company's core internal governance documents — bylaws (corporations) or operating agreement (LLCs) — have been drafted, adopted, and stored in the company's records.

Common mistake: Using a generic online operating agreement without tailoring it to the actual ownership structure — leaving key provisions like deadlock resolution, buyout triggers, and distribution waterfalls undefined.

In plain language: Confirms that a binding agreement governs the relationship among equity holders, including vesting schedules, transfer restrictions, voting rights, and exit provisions.

Common mistake: Skipping the shareholders agreement until investors require it. By that point, a co-founder who has already departed may be holding unvested equity with no contractual mechanism to reclaim it.

In plain language: Confirms that all founders, contractors, and early employees have signed agreements assigning their work product and pre-existing relevant IP to the company.

Common mistake: Assigning only post-incorporation IP and leaving pre-incorporation work product — code, designs, or research built before the entity existed — unassigned, which creates a chain-of-title gap that blocks venture investment.

In plain language: Confirms that any founder or employee receiving restricted stock has filed an 83(b) election with the IRS within the mandatory 30-day window from the grant date.

Common mistake: Missing the 30-day window — the deadline is absolute with no extensions. A missed 83(b) election can result in ordinary income tax on the full appreciated value of the stock at each vesting event.

In plain language: Confirms that all required federal, state, county, and municipal business licenses and industry-specific permits have been identified, applied for, and obtained.

Common mistake: Assuming a state-level business registration covers all licensing requirements. Many industries — food service, healthcare, financial services, construction — require separate local or federal permits that carry criminal penalties for non-compliance.

In plain language: Confirms that a dedicated business bank account has been opened, accounting software is in place, and basic financial controls — expense policies, signature authorities — are documented.

Common mistake: Commingling personal and business funds before the bank account is open, or after it is open. Commingling is the single most common basis for piercing the corporate veil and eliminating limited liability protection.

In plain language: Confirms that all hired employees and contractors have executed appropriate agreements, that payroll is registered, and that any equity grants are documented in the cap table.

Common mistake: Classifying early contributors as contractors to avoid payroll obligations when the work arrangement meets the legal definition of employment — triggering back taxes, penalties, and potential personal liability for the founders.

In plain language: Confirms that required insurance policies are in place and that a compliance calendar tracking annual filings, renewals, and reporting deadlines has been established.

Common mistake: Setting up insurance at incorporation and never reviewing coverage as the business grows. A company that adds employees, takes on client contracts, or handles personal data will typically need additional coverage types within the first 12 months.

A list of business tasks for startups is a structured checklist — often formalized as a binding internal document — that guides founders through the legal, regulatory, financial, and operational steps required to properly launch a new company. It covers entity formation, tax registration, founding agreements, IP assignment, licensing, banking setup, and ongoing compliance deadlines. When signed by the founding team, it creates an auditable record that critical early tasks were completed and acknowledged.

The ideal window is the 30 days before and 60 days immediately after incorporation. Several tasks have hard deadlines tied to the incorporation date — the 83(b) election must be filed within 30 days of a stock grant, and most states require an initial annual report within 60–90 days of formation. Completing the checklist early prevents the cascading compliance problems that arise when founders focus only on product while legal tasks are deferred.

A template is sufficient for straightforward single-jurisdiction entities with simple equity structures. Engage a startup attorney when the company has two or more co-founders (vesting and IP assignment disputes are common), when the business operates in a regulated industry, when venture capital is on the near-term horizon, or when founders are in multiple jurisdictions. A one-time startup legal audit typically costs $1,500–$3,000 and is worthwhile before approaching any outside investor.

Articles of incorporation are the external state-filed document that legally creates a corporation — they are a public record. An operating agreement (or bylaws for a corporation) is the internal governance document that defines how the company is run, who has voting rights, how profits are distributed, and what happens when a founder leaves. Both are required for a properly formed entity; the articles create the entity, and the operating agreement governs it.

If founders or early contractors never signed an IP assignment, the intellectual property they created — code, designs, patents, trademarks — may legally belong to them personally rather than to the company. This creates a chain-of-title gap that venture investors flag in due diligence. Correcting it after the fact requires tracking down former contributors and negotiating retroactive assignments, which can be expensive or impossible if relationships have soured.

An 83(b) election applies only to restricted stock — equity that vests over time or is subject to a repurchase right. It is a US federal tax election with no direct equivalent in Canada, the UK, or the EU, though those jurisdictions have analogous mechanisms. It is not relevant for stock options (which have a different tax treatment) or for fully vested shares issued at incorporation with no restrictions. Founders receiving restricted stock in a US entity should file it automatically unless their tax advisor recommends otherwise.

Most of the same tasks apply — EIN registration, state tax filings, licenses, banking setup, IP assignment, and an operating agreement are all required. The key differences: LLCs use an operating agreement rather than bylaws, do not issue stock (so no 83(b) election applies to standard membership interests), and are not structured for equity financing in the same way as C-Corps. Founders planning to raise venture capital should typically elect C-Corp status rather than LLC before approaching investors.

Under the US Corporate Transparency Act, most small companies formed or registered in the US must file a Beneficial Ownership Information (BOI) report with FinCEN identifying individuals who own 25% or more or exercise substantial control over the entity. As of 2024, new companies must file within 90 days of formation; existing companies had a 2024 deadline. Exemptions exist for large operating companies and regulated entities. Non-compliance carries civil penalties of $500 per day and criminal penalties up to $10,000. Check current FinCEN guidance for the latest deadlines, as this area is subject to ongoing litigation and rulemaking.

The initial checklist should be completed and signed within the first 90 days of incorporation. It should then be reviewed at each significant milestone — first hire, first outside investment, entry into a new state or country, launch of a new product line — to identify new compliance obligations triggered by growth. An annual review tied to the fiscal year-end is the minimum for any operating business.