This document provides tips and guidance for new business owners on setting up important operational and legal aspects of their startup. It outlines key tasks for company formation like obtaining an EIN and SUI, opening a business bank account, setting up payroll and benefits compliance. It also discusses healthcare options under the Affordable Care Act, minimizing legal risks around contractors vs employees and entity structure, and the benefits of trademark registration. The presenters aim to help new founders avoid common mistakes by properly setting up financial, legal and HR operations from the very beginning.

1. GETTING YOUR STARTUP STARTED
TIPS & TRICKS FOR NEW BUSINESS OWNERS
COMPANY FORMATION CHECKLIST COMPLIANCE AND LAW
BENEFITS & HEALTHCARE
FAQ
PRESENTED BY

2. Sirk Roh:
Chief Operating Office
Robert Lopez:
Head Of Sales And Business
Development

3. 33%
of small businesses get
fined for doing payroll incorrectly

4. “Financial operations aren’t my forté.
I have little tolerance for paperwork,
forms, or bookkeeping, and so had
been putting off someoperational tasks
for too long –
knowing this, I should have outsourced
this as early as possible…
Don’t cut corners here.”
- Seth Bannon, Y Combinator Alum and
CEO and Founder of Amicus

5. COMPANY FORMATION CHECKLIST
A FEW THINGS TO DO AT THE VERY START
Set up an EIN
FREE TO SETUP
Get an SUI
REQUIRED FOR PAYROLL
Open a Business Bank Account
NEED COMPANY NAME AND EIN
Workers’ Comp & Disability
REQUIRED BY LAW IN SOME STATES

6. SET UP YOUR EIN
• An EIN, also known as a Federal Tax Identification Number, is used to
identify a business entity. EINs are issued for the purpose of tax
administration. Anyone who has started a new business or hired or will
hire employees is required to have an EIN
Why
Where
You’ll Need
• You can obtain an EIN for free at
https://sa2.www4.irs.gov/modicin/individual/
• Your social security number

7. UNEMPLOYMENT AND
WITHHOLDING
• Setting up withholding with your SUI (State Unemployment
Insurance) Number ensures that quarterly combined returns and
unemployment insurance payments are credited promptly and
accurately. You can’t set up payroll without this, unless you use a
PEO (like Justworks).
Why
Where
You’ll Need
• https://applications.labor.ny.gov/eRegWeb/
• Your EIN or SSN

8. OPEN A BUSINESS BANK
ACCOUNT
• If you co-mingle your personal and business finances, a court can
potentially go after you as it looks like you and the corporation are
one and the same. Using a separate business account makes it much
easier to file your business income and expenses separately from
your personal transactions
Why
Where
You’ll Need
• PNC Bank, First Niagara, Peoples United Bank, SVB, others
• Name of company and EIN

9. SET UP WORKERS’ COMP
(IF YOU HAVE EMPLOYEES)
• Workers’ compensation insurance protects employers and
employees against financial losses in the case of injury. Not
carrying this insurance for employees is a crime and the business
owner can be prosecuted for a misdemeanor or felony (in NY, you
also need disability).
Why
Where
You’ll Need
• http://workcompone.com/
• Name of company and census data (salary, job type, location)

10. HEALTHCARE FAQ
COMMON QUESTIONS
Obamacare & My Business
HOW WILL IT BE AFFECTED?
Getting a Policy
HOW CAN I DO THIS?
Contributing to Policy
WHAT IS TYPICAL?
Going without a Policy
THE COSTS ASSOCIATED?
A Great Benefit for your Employees

11. AFFORDABLE CARE ACT AND
YOUR BUSINESS
The ACA provides access to lower cost health insurance plans and
subsidized policies for employees and employers. No more pre-existing
conditions; you can not be denied coverage. Subsidies are based on
income. Health Republic & Oscar are 2 examples in NY.
Get more info at:
http://healthcare.gov
and
nystateofhealth.ny.gov

12. HOW DO I GET HEALTHCARE?
• Visit http://healthcare.gov or get in touch with a broker to find a group
policy for your company
• If your company employs less than 50 employees you have no obligation
to offer health insurance; Depending on income levels, some employees
might qualify for subsidies
• Educating your employees about their options (exchange, agents) is a
good idea since being individually insured is a requirement of the ACA.
• For employers with more than 100 employees, the fine for not providing
insurance could be $2000 per employee.

13. MINIMUM CONTRIBUTIONS FOR
HEALTH INSURANCE
Generally speaking the minimum contribution for all states is 50%-60%
You can find additional information on the government websites listed on
previous slide or seek consultation from a licensed agent / broker.

14. THE HEALTHCARE EXCHANGES
• Since health insurance can be very confusing and an emotional product
any help you can provide for your employees will be seen in a positive
light.
• US citizens are required to carry health insurance or face fines starting
April 2014.
• If you’d like your company to pay for your employees’ individual policies,
you can, but keep in mind:
• It’s considered taxable income, so unlike a group policy, there is no
pre-tax benefit
• You may not discriminate by paying for one employee’s health
insurance while not paying for another’s

15. OTHER BENEFITS & INSURANCE
A FEW THINGS TO DO AT THE VERY START
Dental Insurance
GOOD BENEFIT AND LOW COST
Vision Insurance
GOOD BENEFIT AND LOW COST
General Liability
TYPICALLY NEEDED FOR OFFICE SPACE
D&O Insurance
PROTECTS FOR SENSITIVE INFORMATION

16. THE LEGAL ASPECT
Make Sure you are following the law because penalties
DECISIONS NEEDING LEGAL INPUT
Contractors vs. Employees
DO THE RIGHT THING
Corporate Entity Type
WHERE AND HOW TO INCORPORATE
State of Incorporation
USUALLY DELAWARE
Trademark Registration
PROTECT YOUR CREATION
can be brutal

17. CONTRACTORS VS. EMPLOYEES
In general, new people should be classified as employees unless:
1. They are explicitly temporary (eg a 3 month contract).
2. They are hired to work on a single project, with a definitive end or
deliverable
3. They are being paid for a specific result (like a deliverable), rather than
for their time

18. CORPORATE ENTITY TYPE
They type of business entity you choose will depend on three primary
factors: liability, taxation and record-keeping.
If you’re looking to raise venture capital, the quick answer is you should
incorporate as a C corporation. See entity type chart slide for details.

19. WHERE SHOULD I INCORPORATE?
Picking the right state can save you time and money in fees and taxes as well as
additional legal fees later if you need to change locations for business reasons. Most
investors would prefer that your company is incorporated as a C corp in Delaware.
If your business meets any of the following criteria in a state other than your home state,
then you should check with the state government and/or a lawyer about applying for a
foreign qualification:
• Your business has a physical presence in the state
• Your business has employees in the state
• Your business accepts orders in the state
• Your business has a bank account in the state

20. SHOULD I REGISTER MY
TRADEMARK? HOW DO I DO IT?
Your brand is one of your most important assets. By registering your
trademark, you receive national protection and place everyone on notice of
your rights to the trademark.
Learn more: http://www.fr.com/Top-10-Benefits-of-Trademark-Registration-
01-15-2010/
Register your trademark:
http://www.uspto.gov/trademarks/teas/
or
http://www.trademarkia.com

21. THANK YOU AND CONTACT US
Robert Lopez
robert@justworks.com
888-534-1711
@JustworksHR
Sirk Roh
contact@earlygrowthfinancialservices.com
415-234-3437
@EarlyGrowthFS