# The $500 Founder Guide *A practical, low-cost setup guide for first-time founders who need an entity, an EIN, basic docs, domain/email, accounting, and enough structure to sign contracts without making a mess.* > **Important:** This is a practical founder guide, not legal or tax advice. If there is more than one founder, owner, member, partner, or stockholder involved, talk to a startup lawyer before forming the company. Period. --- ## 1. The $500 budget, in plain numbers This guide is named for a real budget. Roughly $500 gets a solo founder a Delaware C-Corp, a domain, U.S. corporate tax software, and a year of business email — with a little left over. | Line item | Cost | Where | |---|---:|---| | Delaware C-Corp formation (state filing + registered agent) | ~$142 | [bizee.com](https://bizee.com) | | Domain (.com, one year) | ~$11.50 | [Cloudflare Registrar](https://www.cloudflare.com/products/registrar/) — at-cost, no markup | | TurboTax Business (federal corporate return) | ~$190 | [intuit.com](https://turbotax.intuit.com/small-business-taxes/) | | TurboTax state addon (per state) | ~$55–$60 | (same) | | Business email (Zoho Mail free, Office 365, or Google Workspace; ~1 user × 12 months) | $0–$100 | [zoho.com/mail](https://www.zoho.com/mail/custom-domain-email.html), [microsoft.com](https://www.microsoft.com/microsoft-365/business), or [workspace.google.com](https://workspace.google.com) | | **Total** | **~$398.50–$498.50** | | Form the entity, get the domain, file taxes properly, and keep one mailbox running for a year — under $500. **Annual recurring costs (year 2 and beyond).** The numbers above are first-year setup. Expect roughly **$100 per year** for the corporation's annual filing and registered-agent renewal, plus the domain renewal (~$11.50) and another year of business email ($0–$100/user, depending on provider). Multi-state operations add more: revenue earned in another state can trigger that state's "doing business" thresholds, making you subject to **franchise tax, state income tax, or business-license requirements** there — independent of where your entity was formed. See section 8 ("Delaware entity does not mean Delaware-only obligations") for the foreign-registration story. ### Free hosting and forms, courtesy of Cloudflare Pages The unsung "free" item: **Cloudflare Pages** will host a simple static landing page for your company at no cost, including a custom domain. This site you're reading right now — [sciencefounders.org](https://sciencefounders.org) — runs on Cloudflare Pages. You can: - Hand-write a few HTML files (or generate them with whatever tool you like — modern LLMs will spit out a clean landing page from a one-paragraph brief). - Drop them in a folder, push to a Git repo or upload with the Wrangler CLI. - Wire it to your domain through Cloudflare DNS. --- ## 2. Before you form anything: do a USPTO trademark search Before you spend a dollar on formation, a domain, or branding — **search the USPTO trademark database for your proposed company and product names**. If you form an entity, register a domain, file articles, design a logo, and start signing customers under a name that's already trademarked by someone else, you may end up rebranding the entire stack — paying for setup a second time, plus potential legal exposure. The search is free, takes ten minutes, and routinely saves multiples of the $500 budget below. - Search the U.S. registry at **[tmsearch.uspto.gov](https://tmsearch.uspto.gov/)** — the current USPTO trademark search system (replaced the old TESS in late 2023). - Search for **exact name matches** *and* **phonetically / visually similar marks** in the same trademark classes (e.g., software, scientific instruments, consulting services). - Use the [Trademark Status & Document Retrieval (TSDR)](https://tsdr.uspto.gov/) tool to inspect the status of any registrations you find — abandoned applications can sometimes be safely worked around; live registrations usually cannot. - If you plan to operate internationally, also search the [WIPO Global Brand Database](https://branddb.wipo.int/). A clean search is not a guarantee. **Common-law trademarks** (unregistered marks that are still legally protected through use) and **pending applications** can still cause conflicts. For load-bearing names — the company itself, a flagship product, anything you're committing branding dollars to — narrow the candidates down with this search, then run the finalists past a trademark attorney before you spend. ```markdown - [ ] Searched proposed company name on tmsearch.uspto.gov - [ ] Searched flagship product / brand names - [ ] Checked phonetically / visually similar marks in the same class - [ ] Searched WIPO Global Brand Database (if operating internationally) - [ ] Noted any pending or near-conflict registrations - [ ] Discussed any close calls with a trademark attorney ``` --- ## 3. Who this guide is for This guide is for first-time founders who need to get a real entity set up cheaply so they can: - negotiate contracts; - own or license intellectual property; - apply for grants, including SBIR/STTR-style funding; - open a business bank account; - issue invoices; - use a real business email address; - avoid signing company obligations personally. This is **not** a guide to raising venture capital, negotiating university licenses, building a cap table, or issuing equity compensation in detail. It is about getting the basic entity and operating stack in place without spending thousands of dollars too early. --- ## 4. The first decision: solo founder or more than one person? **Decision flow.** - *Are there multiple founders, owners, members, partners, or stockholders?* - **Yes** → talk to a startup lawyer before forming anything. - **No** → continue. - *Are you raising outside investment soon?* - **Yes** → consider forming a C-Corp. - **No** → continue. - *Do you mainly need an entity to own IP, license IP, sign contracts, invoice, or apply for grants?* - **Yes** → a single-member LLC may be enough. - **No / unsure** → keep it simple, but understand your next 12–24 months. Then in all cases: 1. Use a formation platform or statutory agent. 2. Get an EIN directly from the IRS — it's free. 3. Set up domain, email, bank account, and accounting. 4. Check foreign-entity registration in states where you actually operate. 5. Track revenue, payroll, taxes, and annual reports. ### The hard rule If there is more than one party involved, get a lawyer. That includes: - two co-founders; - a technical founder plus a business founder; - a professor plus a graduate student; - a company plus a university inventor; - a spouse, friend, or advisor receiving ownership; - an LLC with more than one member; - a C-Corp with multiple founders receiving stock. The reason is simple: once there is more than one person, you are dealing with ownership, control, fiduciary duties, tax allocations, IP assignment, vesting, deadlock, securities law, and breakup scenarios. Templates are not enough. --- ## 5. LLC vs C-Corp For a **solo founder**, the basic fork is usually: | Founder situation | Entity that may fit | |---|---| | You need an entity to own/license IP, sign contracts, invoice, or apply for grants | Single-member LLC | | You expect to raise outside investment soon | C-Corp | | You plan to hire employees and issue equity incentives | Usually C-Corp | | You have more than one founder/member/owner | Lawyer first | | You are unsure but need a simple entity now | Single-member LLC may be a reasonable starting point | A solo founder can often start with a **single-member LLC** and later convert to a C-Corp if the company becomes venture-track. That is not free and not always trivial, but it is common enough that it can be better than overbuilding too early. A solo founder can also start as a **C-Corp** from the beginning if they know they need to raise investment, issue stock, create a stock option plan, or look like a venture-backed startup from day one. ### Where to form The state of formation depends on entity type and intent. - **LLC** — usually best formed in the state where you actually operate. You'll need foreign-entity registration anywhere you're doing real business anyway, and most home-state LLC formation fees and annual reports are cheaper than going Delaware-then-foreign. Some founders form an LLC in **Wyoming** (no state income tax, very low annual fees) or **Delaware** instead, to save on fees, set up for a clean later conversion to a C-Corp, or because they don't have a strong home-state nexus. - **C-Corp or Public Benefit Corp (PBC)** — almost always **Delaware**. Investor-friendly corporate law, fast and predictable Court of Chancery, and every template from Cooley GO, Orrick, and WilmerHale assumes a Delaware certificate of incorporation. Even when the company operates elsewhere, the entity itself lives in Delaware. > **Example.** Science Founders, Inc. is a Massachusetts non-profit corporation (a 501(c)(3)). It was formed in MA because that is where it actually operates — a non-profit doesn't get the same Delaware-jurisdiction benefits a venture-track startup does. --- ## 6. What is actually different? ### LLC An LLC is usually governed by an **Operating Agreement**. For a single-member LLC, the operating agreement can be simple. It says who owns the company, who manages it, and how the company operates. A solo founder’s LLC may also need a basic **banking resolution** authorizing the founder or manager to open bank accounts and act for the company. LLC ownership is typically expressed as **membership interests** rather than shares of stock. ### C-Corp A corporation is formed by filing a **Certificate of Incorporation** or **Articles of Incorporation**, depending on the state. Delaware calls it a Certificate of Incorporation. A C-Corp usually has: - a certificate/articles of incorporation; - bylaws; - an incorporator consent; - initial board consent; - stock purchase agreements; - founder stock issuances; - possibly restricted stock; - possibly 83(b) election issues; - later, a stock option plan. C-Corp ownership usually starts through **stock purchases**. Even founder stock can involve securities law and tax issues, especially if vesting is involved. This is why multi-founder C-Corps should not be formed casually from templates without a lawyer. --- ## 7. Formation platforms and statutory agents This guide does **not** recommend the pure DIY Secretary of State route for most first-time founders. Instead, use a formation platform or statutory agent that helps with: - entity formation; - registered agent / statutory agent service; - annual report reminders; - compliance dashboards; - document storage; - foreign qualification support; - registered agent renewals. Platforms I have used: | Platform | Useful for | |---|---| | [**Bizee**](https://bizee.com) | Low-cost LLC or corporation formation; packages often start at $0 plus state fees, depending on options. | | [**Harvard Business Services**](https://www.delawareinc.com/) | Delaware LLCs and corporations; especially useful if you know you want a Delaware entity. | | [**LegalZoom**](https://www.legalzoom.com/) | Broad business formation platform for LLCs, corporations, DBAs, and related services. | There are many others people can find. The point is not that these are the only options. The point is that a decent platform can make annual reports, registered agent renewals, and entity records easier to manage. > **Example.** Science Founders uses Bizee for entity formation, registered-agent service, and annual-report management on its Massachusetts non-profit corporation. --- ## 8. Delaware entity does not mean Delaware-only obligations A common founder mistake is thinking: > “I formed in Delaware, so I only deal with Delaware.” No. Once your company has real business activities in another state, you may need to register there as a **foreign entity**. For example: > A Massachusetts startup may form as a Delaware C-Corp, then register as a foreign corporation in Massachusetts, file annual reports or taxes in Massachusetts, and also file federal tax returns. This is normal. It is also one reason formation platforms and registered agent services are useful: they can help track annual filings, franchise taxes, registered agent renewals, and foreign qualifications. Business activity can include things like: - having employees in a state; - having an office or lab in a state; - regularly conducting business from a state; - applying for state-specific grants or contracts; - signing customers or leases tied to that state; - holding assets or operations there. The details vary by state, so check with a lawyer or CPA when operations become real. --- ## 9. Get your EIN yourself After formation, the company needs an **Employer Identification Number**, or EIN. Apply directly at the IRS, online, for free: **[sa.www4.irs.gov/applyein/](https://sa.www4.irs.gov/applyein/)**. Eligible applicants typically receive the EIN immediately at the end of the application, and a downloadable PDF confirmation letter to save in your company records. Do not pay a formation agent $70 just to click through the IRS EIN process unless you knowingly value the convenience. Founder checklist: ```markdown - [ ] Entity formed - [ ] Formation documents saved - [ ] Registered/statutory agent active - [ ] EIN obtained directly from IRS - [ ] IRS EIN confirmation letter saved as PDF - [ ] EIN added to company records folder ``` --- ## 10. Basic documents to generate or collect For a solo founder, you want a clean company records folder. ### Single-member LLC Minimum useful records: ```markdown - [ ] Articles / Certificate of Organization or Formation - [ ] Operating Agreement - [ ] Banking Resolution - [ ] EIN confirmation letter - [ ] Registered agent information - [ ] State filing receipts - [ ] Annual report deadlines ``` ### C-Corp Minimum useful records: ```markdown - [ ] Certificate / Articles of Incorporation - [ ] Bylaws - [ ] Incorporator consent - [ ] Initial board consent - [ ] Founder stock purchase agreement - [ ] Stock ledger / cap table - [ ] EIN confirmation letter - [ ] Registered agent information - [ ] State filing receipts - [ ] Annual report / franchise tax deadlines ``` For a C-Corp, stock issuance should be taken seriously. Stock purchases, vesting, 83(b) elections, and founder equity are tax and securities issues. --- ## 11. Business banking You need a separate business bank account from day one. This is non-negotiable for clean books, for liability protection (commingling personal and company funds can pierce the corporate veil), and for receiving grant or contract payments cleanly. > **This matters more than almost anything else in this guide.** Keep personal and business expenses **strictly** separate for tax purposes. Every business expense flows through a company account or card. Every business reimbursement and every grant payment lands in a company account. Mixing the two — putting a business expense on a personal card, or paying for groceries from the business account — creates problems that compound: messy bookkeeping at tax time, lost or unreimbursable expenses, weakened corporate-veil protection if you ever get sued, and red flags on grant audits. The IRS, your accountant, and your lawyer all expect a clean line. > > **When the company's account is empty and an expense comes up, make a founder loan.** Move money from your personal account into the company account (record it in accounting as an *Owner Contribution* or *Founder Loan*), and let the company pay the bill from its own account on its own card. When revenue or grant payments come in, the company can repay the loan, or — for a C-Corp, after talking to a CPA — convert it to equity. > > Yes, the founder-loan dance adds a small delay when cash is tight. Take the delay every time. It is always cheaper than untangling commingled accounts later, and it keeps you out of trouble at tax time. Traditional banks (Chase, Bank of America, Wells Fargo) work, but they usually require a branch visit, sometimes a minimum balance, and can be slow to onboard a freshly formed entity. For most founders today, a **virtual / fintech bank** is faster and friendlier. | Bank | Notes | |---|---| | [**Mercury**](https://mercury.com/) | The most common choice for U.S. startups. No monthly fees, easy onboarding for both LLCs and C-Corps, virtual cards, ACH and wire transfers, integrates with QuickBooks and most accounting tools. Flexible, friendly to early-stage operations. Science Founders banks with Mercury. | | [**Brex**](https://www.brex.com/) | Similar fintech-style bank, more credit-card focused, often used by venture-backed companies. | | [**Relay**](https://relayfi.com/) | Designed around multiple checking accounts (one per project, or one per tax bucket), useful for revenue / payroll / tax separation. | To open the account, have your **EIN confirmation letter**, **formation documents**, and a **government ID** ready. Mercury can usually onboard a freshly formed entity within a day or two. ```markdown - [ ] EIN confirmation letter saved - [ ] Formation documents accessible - [ ] Business bank account opened (Mercury or similar) - [ ] Personal and business expenses separated from day one - [ ] Business debit/credit card used for all company spending - [ ] Accounting software connected to the bank account ``` --- ## 12. Free launch document resources These are useful for formation-adjacent startup documents, especially once you understand what entity you are forming. | Resource | Notes | |---|---| | [**Cooley GO Docs**](https://www.cooleygo.com/documents/) | Generates startup legal documents, including Delaware incorporation packages and other common startup documents. | | [**Orrick Tech Studio / Startup Forms**](https://www.orrick.com/en/Practices/Tech-Studio) | Startup forms, incorporation toolkit, SAFE toolkit, cap table tools, and other startup resources. | | [**WilmerHale Launch Document Generator**](https://launch.wilmerhale.com/) | Startup document generator for entrepreneurs and founders. | | [**Gunderson Dettmer resources**](https://www.gunder.com/) | Strong startup and venture ecosystem resource base, especially for venture-track companies. | Use these resources carefully. Templates are helpful, but they do not replace legal judgment when there are multiple founders, investors, university IP, employees, or equity grants. --- ## 13. Investment document resources Keep investment documents separate from basic launch documents. These are helpful once you are raising money, but they are not a substitute for forming the company correctly. | Resource | Use case | |---|---| | [**YC SAFE documents**](https://www.ycombinator.com/documents) | Common early-stage financing instrument for startup fundraising. | | [**NVCA model documents**](https://nvca.org/model-legal-documents/) | Standard venture financing documents. | | [**Series Seed documents**](https://www.seriesseed.com/) | Common lightweight preferred-stock financing documents for seed rounds. | | [**Carta resources**](https://carta.com/) | Useful for cap tables, equity administration, and founder education. | | [**OG Equity Compensation**](https://github.com/jlevy/og-equity-compensation) | Every founder should read this as a primer on equity compensation, even though it is not a simple guide to early-stage equity norms. | --- ## 14. Domain registration Get a real domain early. Good low-cost domain registrar options: | Registrar | Notes | |---|---| | [**Cloudflare Registrar**](https://www.cloudflare.com/products/registrar/) | At-cost registration and renewals, no markup, strong DNS/security tooling. | | [**Namecheap**](https://www.namecheap.com/) | Popular registrar with domain search, registration, transfers, and domain privacy features. | | [**Porkbun**](https://porkbun.com/) | Low-cost ICANN-accredited registrar. | Basic checklist: ```markdown - [ ] Buy company domain - [ ] Turn on auto-renew - [ ] Use a company-controlled email address for registrar login - [ ] Enable two-factor authentication - [ ] Save registrar login in password manager - [ ] Set up DNS records for email ``` --- ## 15. Email and productivity stack Do not run a company from a personal Gmail account forever. Use a real custom-domain email like: ```text founder@company.com ``` ### Common options | Tool | Best for | |---|---| | [**Google Workspace**](https://workspace.google.com/) | Familiar Gmail/Docs/Drive setup; generally priced per user/month. | | [**Microsoft 365**](https://www.microsoft.com/microsoft-365/business) | Outlook, Office, Teams, OneDrive; commonly used in enterprise and grant-funded organizations. | | [**Zoho Mail / Zoho Workplace**](https://www.zoho.com/mail/custom-domain-email.html) | **Free for up to 5 users on a custom domain** ([details](https://www.zoho.com/mail/custom-domain-email.html)). Paid tiers add desktop-client (IMAP/POP) access and the rest of Zoho Workplace. Excellent choice for a one- or two-person company that doesn't need full desktop-mail-client integration. | For small university spinouts or grant-funded projects, Zoho can be excellent because it also connects into CRM, accounting, and other business tools. --- ## 16. Accounting software You need a basic accounting system as soon as money starts moving. | Tool | Notes | |---|---| | [**QuickBooks Online / QBO**](https://quickbooks.intuit.com/) | The most common small-business accounting platform in the U.S.; many U.S. bookkeepers and accountants are familiar with it. | | [**Zoho Books**](https://www.zoho.com/us/books/free-accounting-software/) | **Free plan for businesses under $50K in annual revenue** ([details](https://www.zoho.com/us/books/free-accounting-software/)) — invoicing, expenses, reports, bank reconciliation. Pairs naturally with Zoho Mail if you're already in the Zoho ecosystem. | | [**Xero**](https://www.xero.com/us/) | Good accounting platform, but fewer U.S. bookkeepers/accountants use it compared with QBO. | For a very small, pre-revenue, university-funded, or grant-funded team, Zoho’s free tier can be a great starting point. For a company that expects to raise money, hire employees, or work with U.S. accountants, QBO is often the safer default. ### Pro forma and financial-modeling templates Beyond bookkeeping, founders eventually need a real **financial model / pro forma** — a spreadsheet that projects revenue, costs, headcount, runway, and unit economics. Taylor Davidson's **[Hemrock templates](https://www.hemrock.com)** are donation-ware (pay-what-you-want) pro forma and finance models for startups — practical, well-structured, and widely used across the early-stage community. A good starting point if you don't want to build a model from scratch. ### For climate-focused startups: fractional CFO and grant-backed financing If you're a science-based founder in the climate space, a category of specialty firms sits between "DIY accounting software" and "hire a full-time CFO." They offer fractional CFO services, climate-aware bookkeeping, and — increasingly important — **financing against awarded SBIRs and government contracts**. This matters because federal contracting under [FAR](https://www.acquisition.gov/browse/index/far) (Federal Acquisition Regulation) is cashflow-tight: you spend the money first, invoice on a cost-reimbursable basis, and wait 30–60+ days for payment. That gap can sink a small company. Bridge financing against the contract or grant award smooths it out. | Firm | What they offer | |---|---| | [**Enduring Planet**](https://enduringplanet.com/) | Climate-tech-focused fractional CFO, bookkeeping, and revenue-/contract-backed financing for grant- and contract-funded startups. | Other climate-focused fractional-CFO and contract-financing firms exist in this space. If you're operating on DOE, NSF, NOAA, or DOD funding, ask around the climate-founder community (including the [Science Founders Slack](http://sciencefounders.slack.com/)) for current recommendations. --- ## 17. Payroll providers Do not casually run payroll yourself once you hire employees. Payroll means: - federal withholding; - state withholding; - unemployment insurance; - workers’ compensation; - payroll tax filings; - new-hire reporting; - state registrations; - year-end forms. Possible payroll providers: | Provider | Notes | |---|---| | [**Justworks**](https://www.justworks.com/) | Payroll and PEO-style offerings; can help with payroll compliance and state setup for a fee. | | [**Gusto**](https://gusto.com/) | Payroll provider that can help with state tax registrations when hiring in new states. | | [**Rippling**](https://www.rippling.com/) | Payroll, HR, IT, and compliance platform; useful for companies that expect multi-state hiring or more complex operations. | These services cost money, but they can prevent expensive mistakes. ### Employee handbook — open-source starting point Once you have employees you need a written **employee handbook** covering paid time off, anti-harassment policy, conflict of interest, IP assignment, code of conduct, and the other policies most states or insurers expect to see. Science Founders publishes a free, open-source handbook template under a commercially permissive license: - **[Open-Source Employee Handbook — Science Founders](https://github.com/ScienceFounders/Open-Source-Templates/tree/main/handbook)** This is a **starting point**, not a finished document. Use it as a baseline, then have your CPA, payroll provider, or an employment lawyer review and customize it for your state, industry, and specific policies before you hand it to a new hire. ### Worker classification, contractors, and lab safety — see the dedicated guide Before you hire anyone, understand the difference between **W-2 exempt vs non-exempt employees**, who actually qualifies as a **1099 contractor** (a much narrower lane in a lab environment than most founders think), and the **OSHA / SDS / hazard-communication compliance** that kicks in the moment someone is working in your facility. That material lives in its own guide: **[Hiring, Managing & R&D Safety →](/guides/hiring-and-safety)**. Misclassifying a lab technician as a 1099 contractor — or treating them as exempt-salaried to "be flexible on hours" — is one of the most expensive mistakes early-stage science companies make. --- ## 18. Taxes and R&D payroll tax credit awareness If you generate revenue, including certain grant or SBIR revenue, talk to a CPA about whether that revenue starts the clock for the **qualified small business R&D payroll tax credit election**. This matters because pre-profit startups may be able to use the R&D credit against payroll taxes rather than only against income taxes. Founder takeaway: ```markdown - [ ] Track revenue by source - [ ] Track R&D expenses from day one - [ ] Track payroll separately - [ ] Ask CPA about R&D tax credit eligibility - [ ] Ask CPA when the 5-year payroll tax credit window starts - [ ] Keep grant agreements, invoices, payroll records, and contractor records ``` This is not a reason to get clever with taxes yourself. It is a reason to keep clean books early. --- ## 19. C-Corp tax warning C-Corps are more complicated than single-member LLCs. A C-Corp may need: - federal corporate tax return; - state corporate filings; - Delaware franchise tax if formed in Delaware; - foreign state filings if operating elsewhere; - payroll filings if employees are hired; - 1099 filings for contractors; - stock/equity records; - possibly R&D credit documentation. If you are keeping costs down, you may still need something like **TurboTax Business** or a CPA. Do not assume that a C-Corp is as easy to file as a personal Schedule C or disregarded single-member LLC. --- ## 20. Sample low-cost setup budget The “$500” is a target, not a guarantee. State fees, Delaware franchise taxes, registered agent fees, and add-ons can push you above it. | Item | Low-cost path | |---|---:| | Formation platform service fee | $0–$300 plus state fees | | State filing fee | Varies by state/entity | | Registered/statutory agent | Often $50–$150/year | | EIN | $0 if obtained directly from IRS | | Domain | Often ~$10–$20/year | | Email | $0–$8/user/month depending on provider | | Launch documents | $0 using Cooley/Orrick/WilmerHale-style tools | | Accounting | $0 with Zoho Books if under free-plan limits; paid for QBO/Xero | | Payroll | Paid once employees are hired | The goal is not to be cheap in a way that creates legal problems. The goal is to avoid wasting money on things founders can handle safely while paying for help where mistakes are expensive. --- ## 21. Founder setup checklist ```markdown # $500 Founder Setup Checklist ## Entity decision - [ ] I am a solo founder - [ ] If not solo, I have spoken with a startup lawyer - [ ] I understand whether I need an LLC or C-Corp - [ ] I understand whether I may need to convert later ## Formation - [ ] I selected a formation platform / statutory agent - [ ] I formed the entity - [ ] I saved formation documents - [ ] I saved registered agent information - [ ] I noted annual report and renewal deadlines ## EIN - [ ] I got my EIN directly from the IRS for free - [ ] I saved the EIN confirmation letter ## Company records - [ ] LLC: Operating Agreement saved - [ ] LLC: Banking Resolution saved - [ ] C-Corp: Bylaws saved - [ ] C-Corp: Initial board consent saved - [ ] C-Corp: Stock purchase documents saved - [ ] C-Corp: Cap table / stock ledger started ## State compliance - [ ] I know where the company is formed - [ ] I know where the company actually operates - [ ] I checked whether foreign registration is needed - [ ] I understand state and federal tax filing obligations ## Domain and email - [ ] Domain purchased - [ ] Auto-renew enabled - [ ] Two-factor authentication enabled - [ ] Company email set up - [ ] DNS records configured ## Banking and accounting - [ ] Business bank account opened - [ ] Accounting software selected - [ ] Personal and company expenses separated - [ ] Revenue and expenses tracked from day one ## Hiring and payroll - [ ] No employees hired casually - [ ] Payroll provider selected before first payroll - [ ] State payroll registration understood - [ ] Workers’ comp / unemployment obligations checked ## Tax awareness - [ ] CPA consulted when revenue begins - [ ] R&D expenses tracked - [ ] Payroll tax credit eligibility discussed - [ ] Corporate tax filing obligations understood ``` > **Record what you've got.** Once the checklist above is filled in, capture the resulting facts — EIN, formation date, SAM.gov UEI/CAGE, account admin emails, annual-filing deadlines — in a single source of truth. The **[Company Facts template (Word)](/assets/files/company-facts-template.docx)** at the top of this guide is a one-pager built for exactly this. Print it, save as PDF, or keep it as a working document. **Do not store passwords there** — that's what a password manager is for. --- ## 22. Common mistakes to avoid ```markdown - Paying for an EIN when the IRS provides it for free - Forming a multi-founder company without a lawyer - Issuing founder stock without understanding vesting and 83(b) - Using personal Gmail for company business - Signing customer, grant, or license agreements personally - Forgetting foreign entity registration in the state where you actually operate - Mixing personal and business expenses - Hiring employees before payroll and state registrations are ready - Treating equity promises casually over email - Ignoring annual reports, franchise taxes, and registered agent renewals - Waiting until tax season to organize books ``` --- ## 23. Once you're set up: what's next? This guide stops at "the company exists, has an EIN, has a bank account, has a domain and email, and the books are clean." That's the minimum viable setup — but it's only the runway. The next leg covers everything that turns an incorporated shell into an *operational* company: **SAM.gov / UEI / CAGE registration**, **going after your first SBIR or grant**, **lab and general-liability insurance**, **hiring your first employee**, **IP assignments**, and **opening doors to follow-on funding**. That guide is in progress. The placeholder is here: **[Incorporated to Operational →](/guides/incorporated-to-operational)**. Subscribe to the [Science Founders Slack](http://sciencefounders.slack.com/) to hear when it lands. --- ## 24. The practical rule For a solo founder who just needs a real entity: > Form a simple LLC through a reputable formation platform, get your EIN directly from the IRS, set up a domain/email/accounting stack, and keep clean records. For a solo founder planning to raise money: > Consider starting as a C-Corp, but understand that taxes, stock, securities, and equity records are more complicated. For any multi-founder company: > Talk to a lawyer before forming anything. The money you save by skipping legal help is usually much less than the cost of fixing a broken founder setup later.