The 14 operational categories every VC-backed startup needs to run, broken down into setup tasks (do once) and ongoing tasks (keep doing).
Setup:
- Incorporate as Delaware C-Corp (standard for VC path)
- File 83(b) elections for founder stock
- Get EIN from the IRS
- Appoint registered agent in Delaware
- Draft bylaws, board consent, initial stock issuance
- Open state registrations in states where you have employees
Ongoing:
- Annual Delaware franchise tax filing (due March 1)
- Certificate of Good Standing renewals
- Foreign qualification filings in new states as you hire
- Registered agent renewals
- Amendment filings when structure changes (new stock classes, name changes)
Setup:
- Open business checking account
- Set up wire/ACH capabilities
- Connect to payroll, accounting, expense tools
- Set up treasury/sweep for idle cash
- Add authorized signers
- Get corporate credit cards
Ongoing:
- Cash management (monitoring runway, burn rate)
- Processing vendor payments (wires, ACH, checks)
- Treasury optimization (yield on idle cash)
- Bank reconciliation (monthly, fed into accounting)
- Corporate card administration (issuing, limits, controls)
- Multi-account management as complexity grows
Setup:
- Choose payroll provider
- Register for state payroll tax accounts in all employee states
- Set up pay schedules (bi-weekly typical for US)
- Input employee information (SSN, W-4, direct deposit)
- Configure tax withholding
- Set up contractor payment workflows (1099s)
- Define compensation bands/levels (Series A)
Ongoing:
- Run payroll every pay period (bi-weekly or semi-monthly)
- Process new hires and terminations
- Handle state tax registration for new hire locations
- File quarterly payroll tax returns (941, state equivalents)
- Year-end W-2 and 1099 generation and filing
- Manage off-cycle payments (bonuses, commissions, severance)
- Compensation reviews and adjustments
Setup:
- Initialize cap table with founder shares
- Set up option pool (typically 10-15% at seed)
- Get board approval for equity incentive plan
- File Section 409A valuation (needed before issuing options)
Ongoing:
- Issue option grants to new hires
- Process option exercises
- Track vesting schedules
- Annual or event-based 409A valuations
- Model dilution for fundraising scenarios
- Generate cap table reports for investors/board
- Handle secondary sales, stock transfers, termination cliffs
- QSBS tracking
Setup:
- Choose accounting software (QBO is standard)
- Set up chart of accounts (startup-specific: R&D vs. G&A, deferred revenue, etc.)
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Connect bank feeds, payroll, expense tools
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Hire or outsource bookkeeper/accountant
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Define revenue recognition policies
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Set up accrual accounting (required post-seed for investor reporting) Ongoing:
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Monthly close (reconcile all accounts, post accruals, produce P&L/BS/CF)
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Accounts payable (process vendor invoices, schedule payments)
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Accounts receivable (send invoices, track collections)
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Bank reconciliation
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Prepare financial statements for board
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Audit support (Series A+)
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Revenue recognition adjustments
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Intercompany transactions (if multiple entities) Setup:
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Employee handbook (state-specific requirements)
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Offer letter templates
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I-9 verification process
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Background check provider
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ATS for job postings and candidate tracking
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HRIS for employee records
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Set up PTO policy
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Workers' compensation insurance
Ongoing:
- Post jobs, screen candidates, schedule interviews, manage pipeline
- Generate and send offer letters
- Employee onboarding (equipment, accounts, handbook acknowledgment, I-9)
- PTO tracking and management
- Performance reviews (Series A+)
- Employee relations issues
- Offboarding (system access revocation, equipment return, COBRA)
- Employment law compliance (state-specific: mandatory postings, paid leave, etc.)
- Headcount planning and org design (Series A)
Setup:
- Choose benefits model: PEO (bundled) vs. direct (broker + carrier)
- Select health insurance plans (medical, dental, vision)
- Set up 401(k) plan
- Define employer contribution levels
- Open enrollment process
Ongoing:
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New hire benefits enrollment
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Life events processing (marriage, baby, address change)
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Annual open enrollment
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COBRA administration for terminated employees
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401(k) administration and compliance testing
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Benefits cost monitoring and plan renewal negotiation
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ACA reporting (if 50+ FTEs) Setup:
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Issue corporate cards to team members
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Set spending limits and approval workflows
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Connect to accounting software (QBO)
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Define expense categories and policies
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Set up receipt capture requirements
Ongoing:
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Card issuance for new hires, cancellation for departures
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Expense report review and approval
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Receipt matching and categorization
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Monthly expense reconciliation to accounting
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Budget tracking by department/project
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Policy enforcement (flagging out-of-policy spend) Setup:
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Engage CPA firm (startup-specialized)
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Register for state taxes in operating states
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Determine sales tax nexus and obligations
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Set up R&D credit tracking from day one
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Delaware franchise tax setup
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Determine QSBS eligibility tracking
Ongoing:
- Quarterly estimated tax payments
- Annual federal and state income tax returns
- Delaware franchise tax (due March 1)
- Sales tax collection and remittance (if applicable)
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R&D tax credit documentation and filing
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Payroll tax compliance (overlaps with payroll provider)
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State registration renewals
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1099 filing for contractors (January)
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Form 3921 filing for ISO exercises
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Transfer pricing (if international entities) Setup:
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Google Workspace or Microsoft 365
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Password manager (1Password for Teams)
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MDM for company devices
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Security policies (acceptable use, data handling)
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SOC 2 compliance program (when enterprise customers require it)
Ongoing:
- Account provisioning for new hires
- Account deprovisioning for departures (critical: access revocation)
- Device management (OS updates, encryption enforcement)
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SSO and MFA administration
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Security awareness training
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SOC 2 audit preparation and evidence collection
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Vendor security reviews
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Incident response (when things go wrong) Setup:
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D&O (Directors & Officers) insurance (required by most VCs)
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General liability
- Workers' compensation (state-required once you have employees)
- E&O / professional liability (if providing services)
- Cyber liability (if handling customer data)
- Employment practices liability (EPLI)
Ongoing:
- Annual policy renewals
- Coverage adjustments as company grows
- Claims management (rare but critical)
- Certificate of Insurance requests from partners/customers
- Adding new states/jurisdictions
Setup:
- Establish board meeting cadence (quarterly typical post-seed)
- Create board deck template
- Set up investor update cadence (monthly or quarterly)
- Board consent process for major decisions
Ongoing:
- Prepare quarterly board deck (financials, metrics, key decisions)
- Run board meetings (agenda, minutes, follow-ups)
- Draft and circulate board consents (hiring, fundraising, option grants)
- Monthly/quarterly investor updates
- Manage information rights and reporting obligations
- Cap table scenario modeling for fundraising
- Annual stockholder meeting
Setup:
- Classify workers correctly (contractor vs. employee, misclassification risk)
- Set up contractor agreements (IP assignment critical)
- If EOR: select provider, onboard employees in their countries
- Understand local employment law requirements
Ongoing:
- Monthly contractor payments (multiple currencies)
- Tax document collection (W-8BEN for non-US contractors)
- EOR: manage local benefits, PTO, terminations per local law
- Monitor contractor misclassification risk as engagement grows
- Handle currency conversion and timing
Setup:
- Choose e-signature tool
- Build template library (NDA, offer letters, contractor agreements, customer MSA)
- Define signing authority (who can sign what)
- Set up contract storage (often just Google Drive)
Ongoing:
- Send contracts for signature (offers, vendor agreements, customer contracts)
- Track contract status and follow up
- Store executed contracts with searchable metadata
- Manage renewals and expirations
- Audit trail maintenance