Operations
The boring stuff that kills startups. Get the foundations right early.
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LLC vs C-Corp
If you're raising VC, you'll need a Delaware C-Corp — investors expect it. If you're bootstrapping, an LLC gives you tax flexibility and simpler paperwork. Virginia LLCs cost $100 to form through the SCC. Don't overthink this early, but get it right — switching entity types later is expensive.
Bookkeeping Basics
Keep clean books from day one — separating personal and business finances is non-negotiable. Open a business bank account, track every expense, and categorize transactions monthly. This isn't exciting, but messy books will haunt you during fundraising, taxes, and due diligence.
Hiring Your First Employee
Your first hire sets the culture. Hire for attitude and adaptability over credentials. In Virginia, you'll need to register with the Virginia Employment Commission (VEC) for unemployment insurance, get workers' comp, and set up payroll tax withholding. Use a PEO or payroll service to handle compliance.
Contractor Management
Contractors are the fastest way to add capacity without the overhead of full-time hires. Use a clear Statement of Work (SOW) for every engagement. Classify workers correctly — the IRS takes misclassification seriously. Pay on time, over-communicate expectations, and use milestone-based payments for accountability.
Legal Basics
You don't need a lawyer for everything, but you do need the fundamentals covered: IP assignment (make sure the company owns the code, not you personally), NDAs for sensitive discussions, and terms of service for your product. Use template documents for standard agreements and save your legal budget for the complex stuff.
Insurance & Compliance
General liability insurance protects against lawsuits. E&O insurance covers professional mistakes. If you have employees, workers' comp is required in Virginia. If you're handling customer data, understand your obligations under CCPA and GDPR. Don't skip this — one lawsuit can kill a startup faster than bad product-market fit.