Startup Accounting
Your First 90 Days of Startup Finance
Collated by Aparna Devalla, CPA
Curated by Rubric Financial
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Week 1-2: Legal and Banking Foundation
- Incorporate as a Delaware C-corporation — this is the standard structure for venture-backed startups and what investors and attorneys expect.
- Apply for your EIN (Employer Identification Number) with the IRS — you can do this online and receive it immediately.
- Open a business bank account at a startup-friendly bank (Mercury, SVB, or Brex) — never use personal accounts for business transactions.
- Execute founder stock purchase agreements at par value and ensure all co-founders and early team members have signed IP assignment agreements.
Related Resources
Startup Accounting
GAAP Basics for Startups
Understand the Generally Accepted Accounting Principles that every startup needs to follow, from revenue recognition to accrual accounting.
Startup AccountingCapEx vs OpEx: Expense Classification
When to capitalize vs expense costs — and how misclassification affects your financials and taxes.
Startup AccountingWhy Your Bank Balance Doesn't Match Your P&L
Understand why your cash position and income statement tell different stories — and why investors care about accrual-basis financials over bank balances.
