Is it time to hire your first employee?
If you're a small business owner and you've already discovered the benefits of incorporating your business and secured the necessary funding to get operations going, you might be well on your way to success. As your business continues to pick up steam, the time may come where you will have to expand your operations. If you find yourself in need of some extra help with your venture, it might be time to hire your first employee.
Hiring the first employee is considered a milestone for some business owners. But before you take this road, there are some important considerations to account for.
An Inc. article discusses how some entrepreneurs make biased hiring decisions when comparing two different candidates for a position. This bias may be based on an initial feeling that the entrepreneur has about a candidate, but it might not lead to selecting the candidate who is the best fit for the job.
Instead of hiring based on gut instinct alone, Inc. offers several suggestions to help you make a sound hiring decision. By weighing the pros and cons of each candidate, you can more clearly see what one candidate offers that might make them a better choice than the other one. If you are faced with many job candidates, try paring them down by process of elimination. Remember to gain as much information as possible before making your decision.
When it comes time to actually hire someone, you will need to have an employer identification number (EIN) to identify your business with the IRS. Additionally, you will have to register with the labor department in your state, and have the employee fill out relevant IRS forms such as a W-4 and I-9.
With the right preparation and mindset, you can make sure your first hire is a success.