A free nonprofit resource
Find out what actually applies to your business — before it costs you.
Answer a few questions and get one plain-English report: the rules that apply to you now, the thresholds you are about to cross, and the things you are probably being overcharged for.
No account. No email required. Takes about three minutes.
We never get paid. Not by you, not by them.
Almost every site that helps small businesses is paid to send you somewhere. Formation services, PEO brokers, and lenders all pay well for a referral, and that money quietly shapes the advice.
We take none of it. When we point you toward a provider, they may earn their usual commission from you as their customer — and we will tell you exactly how that works, because knowing how the person across the table gets paid is usually the most useful thing you can know.
What changes as you grow
Most of what governs a small business is triggered by headcount. The rules do not announce themselves — they just start applying.
Starting out
The starting line
Sole prop, LLC, S corp, C corp — what the difference actually is, what filing costs, and which parts you are being charged for that are free.
10 – 49 employees
The scramble band
No HR person, and obligations arriving quietly: OSHA logs at 11, discrimination law at 15, COBRA at 20. Plus the payroll-versus-PEO decision.
50 – 99 employees
The compliance wall
The most expensive cliff there is. ACA large employer status, FMLA, and a health plan that moves to a different market.
100+ employees
The institutional band
WARN notice rules, EEO-1 reporting, a Form 5500 plan audit, and the point where leaving your PEO often starts to pay.
The one most people miss
The ACA counts full-time equivalents, not people.
Part-time hours add up. A business with 35 full-time staff and 30 part-timers can already be an Applicable Large Employer — with a coverage mandate and IRS filing obligations — without anyone realising it. And because status is based on last year’s average, you cross the line retroactively.
Check your FTE countQuestions people actually ask
How many employees before I have to offer health insurance?
Fifty full-time equivalents, not fifty people. Employees working 30 or more hours a week count as one each; everyone else's monthly hours are added together and divided by 120. A business with 35 full-time and 30 part-time staff can already be an Applicable Large Employer. Status is based on your average across the prior calendar year, which means you cross the threshold retroactively.
Do I need an LLC, or can I stay a sole proprietor?
A sole proprietorship is what you are by default, and it gives you no liability protection — your personal assets are exposed if the business is sued. An LLC separates them. For most small businesses the LLC is the right answer, and it costs a state filing fee of roughly $40 to $500 depending on the state.
Is an S corp better than an LLC?
That is not the choice. An S corp is a tax election, not a business structure — an LLC can elect to be taxed as an S corp by filing IRS Form 2553. Electing too early costs more in payroll processing, a separate tax return, and reasonable-compensation requirements than it saves. It generally starts to pencil out somewhere around $40,000 to $80,000 of net profit, depending on your state.
Is an EIN free?
Yes. You get an EIN directly from the IRS at irs.gov in about ten minutes, at no cost. Formation services commonly charge $50 to $300 for it. There is no faster or better version of an EIN.
What is the difference between a payroll provider and a PEO?
A payroll provider processes pay and taxes. A PEO becomes a co-employer, handling HR and benefits, and costs considerably more. The large vendors sell both, so a business asking about payroll is often quoted the PEO. PEO pricing scales with headcount while in-house HR does not, so past roughly 100 employees the math frequently reverses.
What compliance rules kick in as I hire more people?
The main federal thresholds are: OSHA injury recordkeeping at 11 employees; Title VII, the ADA, GINA and the Pregnant Workers Fairness Act at 15; COBRA and age discrimination protections at 20; FMLA and ACA large employer status at 50; and the WARN Act plus EEO-1 reporting at 100. Many states set lower thresholds than these.