The HR foundations checklist we work through
- Entity and state registrations: withholding, unemployment insurance, workers' comp
- Worker classification: employees vs. contractors, exempt vs. non-exempt
- I-9s, new-hire reporting and required notices and posters
- Payroll and benefits platform or PEO: fit, cost and renewal terms
- Offer letters, confidentiality and IP assignment agreements
- Employee handbook with state addenda
- Onboarding and offboarding, final pay rules by state
- Hiring process, job levels and first comp ranges
Why seed to Series B is the window
Fixing HR foundations at 20 people takes weeks. Fixing them at 120, after a round of inconsistent offers and a diligence request, takes quarters. A raise is usually the forcing function: investors and acquirers increasingly look at people risk.
General information, current as of 2026-10-12. Employment law changes often and varies by state and city. This is not legal advice; confirm specifics with employment counsel.
Frequently asked questions
What does startup HR setup cost?
The two-week HR Foundations Sprint is $4,500 fixed. Building out what it finds is quoted as a fixed-scope project from $7,500, or rolled into a Fractional Head of People retainer from $4,000 per month.
Do we need an employee handbook at 10 people?
It's strongly recommended once you have employees, especially in several states, because it is where required policies and state notices live. Use the free handbook checklist to see what yours needs.