A Checklist outlining the key issues for a startup company to consider when hiring employees following the startup's initial round of outside equity capital. This Checklist covers issues related to certain equity incentive matters, such as creating an option pool, adopting an equity incentive plan, and obtaining a Section 409A valuation from an independent valuation firm. The Checklist also discusses documenting the company's employment relationships with employees, when and how to provide these individuals with equity incentives (such as incentive stock options, or ISOs, and non-qualified stock options, or NSOs), and how best to protect the company's IP and goodwill.