If your San Diego small business has begun to grow, you may be thinking about hiring your first employee. Before you do, however, there are a few important steps that you must take, such as:

Making Sure That You Are Financially Ready to Hire

Hiring an employee is almost always a significant financial commitment. As such, before you even consider placing an ad in the classifieds, you must make sure that your company’s finances are ready and able to take on the cost. You will most likely need to be able to cover the employee’s annual salary, the employer portion of their taxes, their benefits, and a host of other expenses. Plan carefully if you wish to avoid having to let your new worker go after just a few months.

Getting an Employer Identification Number

If you have been the only one working at your company up until now, you may not have an Employer Identification Number (EIN) yet. This number is used to identify your business for tax purposes and is a necessity if you wish to hire your first employee. Fortunately, the process to obtain an EIN is fairly straightforward. An experienced business attorney in San Diego, like those here at the Semanchik Law Group, should be able to get it for you in a matter of days.

Creating a Detailed Job Description

Before beginning your search for a new employee, it is a good idea to spend some time putting together a detailed description of the tasks that will be required of them. Doing so will help you create your help wanted ad and will also prove helpful when evaluating the employee’s performance later down the line.

Developing a Formal Holidays and Leave Plan

Many small businesses do not have a formal plan for time off, holidays, and sick days. If yours is one of them, you should create one before hiring your first employee. Doing so may prevent a lot of animosity, arguments, and confusion in the months and years to come. Of course, when developing your plan, you will need to make sure that it is compliant with state and federal law. As such, it is a good idea to consult with a California startup lawyer before finalizing things.

Deciding How Your Company Will Recruit

Unfortunately, your perfect employee is unlikely to simply turn up on your office doorstep one day. Instead, if you wish to find the right worker for your company, you will most likely need to do some recruiting. Many small businesses find that online job boards are the most effective recruiting tool, but this may not be the case in your industry. As such, you should take some time to think about how you will pursue potential employees. Doing so can have a huge bearing on the quality and quantity of your applicants.

A California Startup Lawyer Your Business Can Count On

Hiring your company’s first employee can be a little complicated. If you would like a small business attorney in San Diego to help you with the process, please do not hesitate to contact the team here at the Semanchik Law Group. You can reach us at (619) 535-1811. We can’t wait to hear from you!