Tax & Compliance
SOC 2 for Startups: When to Pursue It and What It Costs
Collated by Aparna Devalla, CPA
Curated by Rubric Financial
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What SOC 2 Actually Is
- SOC 2 (Service Organization Control 2) is an AICPA framework attesting that a SaaS company's controls protect customer data across five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
- Type I report: a point-in-time snapshot showing controls are designed correctly (3-6 weeks to obtain, $15-30K).
- Type II report: an audit over 6-12 months showing controls operated effectively, the report enterprise customers actually require ($25-60K + the cost of remediation).
- Not a regulatory requirement, but it's the de facto procurement gate for mid-market and enterprise B2B SaaS deals above ~$50K ACV.
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