Startup HR for Founders
This guide covers the HR decisions founders make from the first hire to about 50 people: what to set up when, how to hire, what contracts must say, how stock options work in Canada and the US, how to set pay, run reviews, manage remote staff, let people go and when to hire HR help.
What HR does a startup actually need?
Less than a big company, but more than most founders set up. The basics, payroll, written contracts and IP assignment, matter from the first hire. Processes for hiring, pay and reviews matter by ten people. Policies and an HR owner matter by 25 to 50. Start with the startup HR checklist.
| Term | Offer |
|---|---|
| Salary | $145,000 |
| Options | 12,000 |
| Vesting | 4 yrs, 1-yr cliff |
Nothing until the cliff, then monthly.
| Step | Status |
|---|---|
| Contracts + IP | Done |
| Salary bands | Next |
| Reviews | Later |
Hiring rules are tightening: Ontario employers with 25 or more employees must now publish pay ranges and disclose AI use in job posts. This guide focuses on Canada, with US notes; employee-or-contractor tests and immigration routes are in hiring in Canada.
Where should you start?
Set up the basics, hire with a process, pay consistently, then build the habits that keep people. Each card opens the page for that step.
Payroll, contracts, IP.
Protects: the companySee the pageScorecard to offer.
Improves: hiresSee the pageIP and termination.
Limits: riskSee the pagePool, vesting, tax.
Aligns: the teamSee the pageConsistent and posted.
Avoids: pay gapsSee the page30-60-90 days.
Keeps: peopleSee the pageRules follow the person.
Avoids: surprisesSee the pageTools, then a person.
Saves: founder timeSee the pageNeed to let someone go? Read terminating an employee first.
Hire well
What HR you need at each stage, a hiring process that works, and offers and contracts that protect both sides.
The HR a startup needs at its first hire, at 10 people and at 25 to 50.
Read guideScorecards, compliant job posts, structured interviews and fast offers.
Read guideWhat every offer letter and employment contract must cover, from IP to termination.
Read guidePay and keep people
Stock options, salary bands and benefits, onboarding and performance reviews.
Option pools, vesting, cliffs and how options are taxed in Canada and the US.
Read guideSalary bands, cash versus equity, pay transparency and benefits that matter.
Read guideA 30-60-90 day onboarding plan, simple reviews and useful one-on-ones.
Read guideRun the team
Remote-team policies, letting people go properly, and when to add HR tools or an HR hire.
Which rules apply to remote staff, and the policies a distributed team needs.
Read guideNotice, severance and the conversation, done fairly and legally.
Read guidePayroll, HRIS, PEO or EOR, outsourced HR, and when to hire an HR person.
Read guideFix the basics before the culture deck.
Signed contracts, IP assignment, correct payroll and consistent pay protect the company and the team. Everything else builds on them.
Frequently asked questions
What HR does a startup need?
Payroll, contracts and IP assignment from the first hire; hiring, pay and onboarding processes by ten people; policies and an HR owner by 25 to 50.
When should a startup hire HR?
Often at 30 to 50 people, earlier if hiring fast or across countries.
How do startup stock options work in Canada?
For CCPC employees, the benefit is taxed when shares are sold, with a 50% deduction if conditions are met.
Do startups have to post salary ranges?
In B.C., for all public job posts. In Ontario, for employers with 25 or more employees from January 1, 2026.
How much notice is required to let someone go in Ontario?
One to eight weeks by length of service, plus severance pay in some cases, or more under the contract or common law.
Is this legal advice?
No. It is general information. Confirm with an employment lawyer and tax advisor.
Sources & further reading
Employment and tax rules change. These government sources let you check the current requirements directly.