You risk fines, penalties, or lawsuits. For example, missing wage notices or payroll setup can trigger regulatory issues.

Before day one. Send documents and policies in advance so the employee begins with clarity and confidence.

At minimum, U.S. employees need an offer letter, I-9, W-4, and confidentiality/IP agreements. Some states require additional wage notices.

Yes. Even with a small team, onboarding helps establish culture, set expectations, and avoid compliance mistakes.

Contractors are best for short-term, specialized, or non-core projects. Employees are necessary for ongoing roles central to your business.

It creates legal and financial liabilities. Investors want clean workforce records to avoid unexpected tax or compliance risks.

No. Classification depends on the actual working relationship, not the job title or contract language.

Contractors control how they do their work and usually operate independently. Employees work under your direction and are integrated into your business.

They clarify compensation, benefits, and employment terms, reducing the risk of disputes and protecting the company legally.

Absolutely. Grants should be approved by the board, backed by a 409A valuation, and issued through a written equity plan.

Most startups use a 4-year vesting schedule with a 1-year cliff to ensure commitment and retention.

Yes, but it should be modest. Paying yourself something demonstrates value for your time, but it shouldn’t jeopardize the company’s survival.

Not entirely. Wrongful termination, discrimination, or retaliation claims are still possible. Document performance and follow fair processes.

You could face penalties, lawsuits, and government audits. Startups must track hours and pay overtime where required.

Yes. A handbook sets clear expectations and helps protect against legal claims, even for small teams.