{"id":4785,"date":"2016-04-04T10:47:45","date_gmt":"2016-04-04T15:47:45","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/what-to-do-when-you-hire-an-employee-for-the-first-time.html"},"modified":"2026-10-20T11:30:47","modified_gmt":"2026-10-20T16:30:47","slug":"what-to-do-when-you-hire-an-employee-for-the-first-time","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/what-to-do-when-you-hire-an-employee-for-the-first-time.html","title":{"rendered":"How Do I Hire My First Employee? Step-By-Step Legal and Tax Requirements"},"content":{"rendered":"\n
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How Do I Hire My First Employee? Step-By-Step Legal and Tax Requirements<\/h1>\n\n
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\n By Catherine Hodder, Esq.<\/a> | Legally reviewed by Laura Temme, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

Hiring your first employee<\/span> is a legal process that requires small business<\/span> owners<\/span> to comply with federal and state regulations. This includes obtaining an Employer Identification Number<\/span> (EIN<\/span>) for tax purposes, verifying the employee’s work eligibility with a Form I-9<\/span>, and setting up tax withholding. You must also register your new hire with the state and secure any required insurance, such as workers’ compensation.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n

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Growing your small business<\/span> is an exciting milestone, but hiring your first employee<\/span> can be daunting. Beyond knowing whether you’re financially ready, you must also follow specific state and federal laws to hire legally. This guide walks you through the key questions to ask yourself and outlines the legal steps you need to take.<\/p>\n

Determine Your Employment Needs<\/h2>\n

Small businesses<\/span> walk a fine line in their first years. They often need employees to make a profit, but can’t afford to hire workers until they do. The\u00a0Society for Human Resource Management<\/a>\u00a0(SHRM) offers online resources to help\u00a0small business<\/span> owners<\/span>\u00a0hire their first employees.<\/p>\n

Here are a few things to consider:<\/p>\n