This checklist covers every legal document and compliance requirement a startup needs, organised by business stage. Whether you're incorporating your first company or preparing for a Series A fundraise, use this guide to ensure nothing falls through the cracks.
Legal mistakes made at the formation stage can cost startups millions during fundraising or acquisition. Getting your legal foundations right from day one is one of the highest-ROI activities a founder can undertake.
Stage 1: Formation
The formation stage establishes your legal entity and foundational governance documents. Every item here should be completed before you begin trading or hiring.
- ✓ Choose business structure (Ltd, LLP, C-Corp, LLC)
- ✓ File Articles of Association / Certificate of Incorporation
- ✓ Draft and sign Founders' Agreement with vesting schedules
- ✓ Issue Share Certificates to founders
- ✓ Create initial Cap Table
- ✓ Assign IP from founders to the company
- ✓ Register for taxes (Corporation Tax, VAT if applicable)
- ✓ Open business bank account
Stage 2: Protect Your Business
Once your entity is formed, protect your intellectual property, data, and online presence with the right legal documents and procedures.
- ✓ Create NDA template for confidential discussions
- ✓ Register trademarks and file patents if applicable
- ✓ Draft Privacy Policy compliant with GDPR/CCPA
- ✓ Create website Terms and Conditions
- ✓ Set up data protection procedures
- ✓ Obtain necessary business licences and permits
Stage 3: Build Your Team
Hiring employees and engaging contractors requires a solid set of employment and equity documents to protect both the company and your team members.
- ✓ Draft Employment Agreement template with IP assignment
- ✓ Create Contractor/Consultancy Agreement
- ✓ Draft Staff Handbook covering policies and procedures
- ✓ Set up payroll and employment tax compliance
- ✓ Create share option scheme (EMI in UK, ISO in US)
- ✓ Draft Advisor Agreement with equity provisions
Stage 4: Fundraise
Raising investment is one of the most document-intensive stages of a startup's life. Ensure all your legal and financial documentation is investor-ready.
- ✓ Prepare investor pitch deck
- ✓ Build financial model and projections
- ✓ Update Cap Table
- ✓ Choose fundraising instrument (SAFE, Convertible Note, Priced Round)
- ✓ Set up secure deal room / data room for due diligence
- ✓ Apply for S/EIS Advance Assurance (UK)
- ✓ Draft and sign term sheets and investment agreements
Stage 5: Govern and Grow
As your company scales, ongoing governance and compliance become critical. These recurring tasks ensure your company stays legally healthy.
- ✓ Schedule and document board meetings
- ✓ Maintain company registers (PSC, members, directors)
- ✓ File annual returns and confirmation statements
- ✓ Claim R&D tax credits if eligible
- ✓ Review and update all contracts annually
- ✓ Maintain compliance certifications (SOC 2, HIPAA if applicable)
How eSignHub Helps
eSignHub provides 150+ templates covering every item on this checklist, plus encrypted deal rooms for fundraising, cap table management, S/EIS compliance tools, R&D tax credit calculators, and board management features. From your first Founders' Agreement to your Series A closing documents, eSignHub supports your startup's legal needs at every stage.
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