Compliance Essentials for Startups
1. Business Entity Compliance
- Register your business with the state and get an EIN from the IRS.
- Create an Operating Agreement or bylaws.
- Secure all required business licenses and permits.
2. Financial & Tax Compliance
- Open a separate business bank account and use bookkeeping software (e.g., QuickBooks, Wave).
- Understand your federal, state, and local tax obligations.
- Use payroll tools (e.g., Gusto, ADP) if you have employees.
3. Data Privacy & Cybersecurity
- Create a Privacy Policy to meet legal standards (e.g., CCPA, GDPR).
- Implement cybersecurity basics: firewalls, MFA, encryption.
- Follow frameworks like NIST or CIS benchmarks.
4. HR & Labor Compliance
- Ensure I-9, W-4 forms, and employee agreements are completed.
- Post required labor law notices and provide basic compliance training.
5. Contracts & Legal Documents
- Have core documents ready: NDAs, MSAs, IP agreements, Terms of Service.
6. Industry-Specific Compliance
| Industry | Requirements |
|---|
| Healthcare | HIPAA, encryption, employee training |
| GovCon | SAM.gov, CAGE code, NIST 800-171/CMMC |
| Education | FERPA, COPPA, ADA/508 |
| Finance | FINRA, AML/KYC, PCI-DSS |
| eCommerce | Sales tax, PCI, consumer protection |
7. Ongoing Maintenance
- File annual reports and renew licenses on time.
- Maintain proper insurance (liability, cyber, etc.).
- Retain financial and legal records (typically 3–7 years).
Recommended Tools
- Docs & Storage: Google Workspace, Notion
- Task Management: Trello, Asana
- Security: Dashlane, 1Password
- Accounting: QuickBooks, Wave
Final Tip: Start simple, stay organized, and grow responsibly. Establishing compliance early builds trust and reduces risk as your startup scales.