Startup Payroll Setup & Compliance
Written by Aparna Devalla, CPA
Curated by Rubric Financial
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Getting Started: EIN and State Registrations
- Obtain a federal Employer Identification Number (EIN) from the IRS before hiring. This is required for all payroll tax filings and can be obtained online immediately.
- Register with your state's department of revenue for income tax withholding and with the state employment agency for unemployment insurance (SUI) in every state where you have employees.
- Some states and localities require additional registrations for disability insurance, paid family leave, transit taxes, or local income tax withholding.
- Keep track of all registration numbers and filing frequencies, as each state has different deadlines, rates, and electronic filing requirements.
Related Resources
The Income Tax Provision Under ASC 740
An overview of the ASC 740 income tax provision, covering deferred tax assets and liabilities, valuation allowances, and why unprofitable startups still record a provision.
Tax & ComplianceISOs vs NSOs: Structuring Option Grants
How Incentive Stock Options and Non-Qualified Stock Options differ in tax treatment, eligibility, and when to use each type in your startup's equity compensation plan.
Tax & ComplianceSection 754 Election: Step-Up Basis for Partnerships (and Why S-Corps Can't)
The §754 election is the mechanism that lets partnerships and LLCs step up the inside basis of their assets when a partner dies, transfers their interest, or takes a distribution. S-corps have no equivalent, a real cost founders often discover too late.
Related tools and reading
R&D Tax Credit Estimator
Estimate your Section 41 / 174 research credit and payroll offset.
InsightBest Payroll Providers for Startups (2026)
Gusto, Rippling, ADP, Justworks, Deel, and OnPay compared for venture-backed startups in 2026: multi-state tax filing, contractor and EOR support, benefits administration, real pricing, and which provider fits your stage.
GlossaryR&D Tax Credit
Federal credit for qualified research expenses, usable against payroll tax by startups.
Free tool2026 Tax Compliance Calendar
Federal, state, franchise, and local 2026 filing deadlines.
InsightThe Delaware C-Corp Startup Tax Guide: Every Filing You Owe
Every tax and filing a venture-backed Delaware C-corp owes: Delaware franchise tax, Form 1120, quarterly estimates, state registrations, payroll and 1099 filings, sales tax, and the credits and elections that save real money.
GlossaryMulti-state Apportionment
Formula for dividing a company's income across states for state income tax purposes, typically based on sales, payroll, and property.
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