After all the paperwork is out of the way, your financial plan is finalized and your small business is finally open to the public, you may think that's the last time you'll have to work through a mountain of forms. However, if you've found the task of operating a solo storefront too challenging and feel the need to hire a set of hands, there are a few hurdles to jump over first. Even businesses that have been in operation for some time may be looking to bring on a new hire, and they too will have to check and make sure they're actually prepared, legally and financially, before placing a help-wanted ad.
Check your papers
Some businesses may run without one, but for tax purposes it's best to always have an Employer Identification Number (EIN) even if you don't intend to hire anyone. However, this is mandatory if you ever do want to hire somebody, according to Business Insider. This means setting up applicable sales and withholding tax files quarterly or annually, but a lot of these forms are now available for completion online. Even applying for a federal EIN is now handled entirely through the IRS' website, so sorting papers shouldn't be an issue.
Make sure you need it
More than just the added hassle of tax filings, there's the question if the business needs the added expense of an additional worker. The Wall Street Journal wrote that it's best to assess whether the job function you're looking to satisfy through hiring is an essential one that will be needed repeatedly. For instance, it may not be wise to hire a fulltime in-house bookkeeper just to do online banking and tax filings, as rather outsourcing to a third party professional you don't have to pay every other week might be best.
One of the last steps small businesses sometimes overlook is making sure the technology on-hand is ready for the stress of a second person. That doesn't always just mean looking at computers, either – Business 2 Community recommends looking at other hardware used regularly during the course of a single day to ensure it's not about to fall apart, as a new person probably won't have the same finesse with a device they're unfamiliar with and don't personally own.