You’re ready to hire.
You need an EIN.
You want a smooth transition.
You need a timeline.
EIN application. Job posting. Offers. Onboarding. Your plan.
This guide shows you how.
Phased timeline. Step-by-step plan. Alignment strategy. Your success.
Read this. Follow the timeline. Hire your first employee.
Key Takeaways
- Apply for EIN first—get your EIN before posting jobs to ensure you can legally hire and pay employees
- Post jobs after EIN approval—wait for EIN confirmation before actively recruiting to avoid delays
- Set up payroll systems—configure payroll software and state tax accounts before making offers
- Make offers with systems ready—extend offers only after payroll and compliance systems are in place
- Onboard smoothly—complete onboarding with all systems operational and compliance requirements met
Table of Contents
Why Timeline Matters
Timeline ensures smooth transition.
What happens without timeline:
- Rushed decisions cause mistakes
- Missing requirements delay hiring
- Compliance issues create problems
- Poor onboarding hurts retention
What happens with timeline:
- Planned decisions prevent mistakes
- All requirements are met
- Compliance is maintained
- Smooth onboarding improves retention
The reality: Timeline enables successful hiring.
Phase 1: EIN Application
Start with EIN application:
Apply for EIN
What to do:
- Complete EIN application
- Provide accurate business information
- Submit required documents
- Wait for confirmation
Why it matters: EIN is required for hiring.
Receive EIN Confirmation
What to expect:
- EIN confirmation letter
- Tax ID number
- IRS acknowledgment
- Record keeping
Why it matters: Confirmation enables next steps.
Verify EIN Status
What to verify:
- EIN is active
- Information is correct
- Documents are filed
- Records are updated
Why it matters: Verification prevents problems.
Pro tip: Complete EIN application first. Apply, receive confirmation, verify status. See our EIN guide for application.
Phase 2: Preparation
Prepare for hiring:
Set Up Payroll Systems
What to set up:
- Choose payroll software
- Configure tax settings
- Set up direct deposit
- Test payroll system
Why it matters: Payroll systems enable payment.
Register for State Taxes
What to register:
- State unemployment insurance
- State income tax withholding
- Workers’ compensation
- State tax accounts
Why it matters: State registration ensures compliance.
Prepare Documentation
What to prepare:
- Job descriptions
- Employment agreements
- Onboarding materials
- Compliance forms
Why it matters: Documentation supports hiring.
Pro tip: Prepare thoroughly. Payroll systems, state registration, documentation. See our hiring guide for preparation.
Phase 3: Recruiting
Begin recruiting:
Post Job Listings
What to post:
- Clear job descriptions
- Required qualifications
- Compensation details
- Application process
Why it matters: Job postings attract candidates.
Screen Candidates
What to screen:
- Review applications
- Conduct interviews
- Check references
- Evaluate fit
Why it matters: Screening finds right candidates.
Select Finalists
What to select:
- Top candidates
- Skills match
- Cultural fit
- Availability
Why it matters: Selection determines success.
Pro tip: Recruit effectively. Post jobs, screen candidates, select finalists. See our hiring guide for recruiting.
Phase 4: Hiring
Make hiring decisions:
Extend Offers
What to include:
- Job title and description
- Compensation package
- Start date
- Terms and conditions
Why it matters: Clear offers prevent confusion.
Complete Paperwork
What to complete:
- Employment agreements
- Tax forms (W-4, I-9)
- Benefits enrollment
- Compliance documents
Why it matters: Paperwork ensures compliance.
Confirm Start Date
What to confirm:
- Start date and time
- Location and schedule
- First day agenda
- Contact information
Why it matters: Confirmation enables onboarding.
Pro tip: Hire carefully. Extend offers, complete paperwork, confirm start date. See our hiring guide for hiring.
Phase 5: Onboarding
Complete onboarding:
First Day Setup
What to set up:
- Workspace and equipment
- System access
- Introductions
- Orientation
Why it matters: Setup enables productivity.
Training and Integration
What to provide:
- Job training
- Company culture
- Team integration
- Support resources
Why it matters: Training ensures success.
Ongoing Support
What to provide:
- Regular check-ins
- Feedback and guidance
- Development opportunities
- Problem resolution
Why it matters: Support improves retention.
Pro tip: Onboard effectively. First day setup, training, ongoing support. See our hiring guide for onboarding.
Your Next Steps
Follow the timeline. Complete each phase. Hire successfully.
This Week:
- Review this timeline
- Apply for EIN
- Begin preparation
- Plan recruiting
This Month:
- Complete EIN application
- Set up payroll systems
- Post job listings
- Begin recruiting
Going Forward:
- Complete hiring process
- Onboard new employees
- Maintain compliance
- Scale your team
Need help? Check out our EIN application guide for getting your EIN quickly, our hiring guide for employee requirements, our waiting guide for productive tasks, and our registered agent guide for business address setup.
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FAQs - Frequently Asked Questions About From Solo to Employer: A Timeline for Getting Your EIN and First Hire Right
Why should I apply for an EIN before posting job listings?
You need an EIN to legally hire and pay employees, set up payroll, and register for state tax accounts—so getting it first prevents delays in the hiring process.
Learn More...
An EIN (Employer Identification Number) is required to run payroll, report taxes, and open a business bank account for employee payments. Without it, you can't legally employ anyone.
If you post jobs before having your EIN, you risk making offers to candidates you can't yet legally pay, creating an unprofessional impression and potential legal issues.
Getting your EIN first allows you to set up payroll systems, register for state taxes, and prepare employment paperwork so everything is ready when your hire starts.
What systems should I set up between getting my EIN and making my first hire?
Set up payroll software, register for state unemployment insurance and income tax withholding, arrange workers' compensation, and prepare employment documents.
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Payroll setup includes choosing payroll software, configuring tax settings, setting up direct deposit, and testing the system before your first employee starts.
State tax registration requires registering for state unemployment insurance, state income tax withholding, and workers' compensation coverage—requirements vary by state.
Documentation preparation includes writing clear job descriptions, drafting employment agreements, creating onboarding materials, and preparing compliance forms like W-4 and I-9.
Having all systems operational before extending job offers ensures you can onboard smoothly without delays or compliance gaps.
What is the ideal timeline from EIN application to first employee start date?
Plan for 4-6 weeks: EIN application (immediate online), system setup (1-2 weeks), recruiting (2-3 weeks), and onboarding preparation (1 week).
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Phase 1 (Week 1): Apply for EIN online for immediate processing, receive confirmation, and verify your EIN status.
Phase 2 (Weeks 1-2): Set up payroll software, register for state tax accounts, prepare job descriptions, employment agreements, and onboarding materials.
Phase 3 (Weeks 2-4): Post job listings, screen candidates, conduct interviews, check references, and select finalists.
Phase 4 (Week 4-5): Extend offers with clear compensation packages and start dates, complete employment paperwork (W-4, I-9, benefits enrollment).
Phase 5 (Week 5-6): First day setup including workspace, system access, orientation, training, and team integration.
What employment paperwork is required when hiring my first employee?
You need completed W-4 (tax withholding), I-9 (employment eligibility), employment agreement, benefits enrollment forms, and any state-specific compliance documents.
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The W-4 form determines how much federal income tax to withhold from your employee's paychecks—this must be completed before the first payroll run.
The I-9 verifies employment eligibility and must be completed within three business days of the employee's start date, with acceptable identity and work authorization documents.
An employment agreement outlines job title, duties, compensation, benefits, work schedule, and terms of employment. While not always legally required, it protects both parties.
Additional requirements may include state-specific new hire reporting forms, benefits enrollment documents, and any industry-specific compliance forms.
What are the most common mistakes when transitioning from solo operator to employer?
Rushing to hire without proper systems, missing state registration requirements, poor onboarding, and not having payroll set up before the employee's start date.
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The biggest mistake is hiring reactively without following a timeline—posting jobs before getting an EIN, making offers before payroll is configured, or bringing someone on before state tax accounts are set up.
Missing state registration requirements is common, especially for state unemployment insurance and workers' compensation, which are mandatory in most states before having employees.
Poor onboarding—no workspace prepared, no system access configured, no training plan—leads to low productivity and early turnover.
Not having a clear payroll system means scrambling to pay your employee on time, which damages trust and can create legal compliance issues.
How do I ensure smooth onboarding for my very first employee?
Have workspace and equipment ready, configure system access in advance, plan first-day orientation and introductions, and schedule training for the first week.
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Before day one, prepare the workspace with all necessary equipment, set up system access and accounts, and have all onboarding materials organized and ready.
Plan the first day carefully: start with orientation covering company culture, expectations, and logistics, followed by introductions to key contacts and a tour of systems they'll use.
Schedule structured training for the first week covering job responsibilities, tools, processes, and resources. Don't expect immediate full productivity.
Establish ongoing support with regular check-ins (weekly at minimum), clear feedback channels, development goals, and a point person they can go to with questions.
Sources & Additional Information
This guide provides general information about transitioning from solo operator to employer. Your specific situation may require different considerations.
For EIN application, see our EIN Application Guide.
For hiring employees, see our Hiring Guide.
For productive tasks while waiting, see our Waiting Guide.
For registered agent services, see our Registered Agent Guide.
Consult with professionals for advice specific to your situation.
