An IPO provides private companies with powerful growth opportunities However, it also subject them to rules and regulations they weren’t required to follow as a private company. Therefore, it is essential to be aware of the risks and challenges they may face before making the move to public markets.

If you are thinking about an IPO for your business or not, creating guidelines for best practices is the initial step in ensuring you are well-prepared. The checklist for preparation for an IPO should include everything from due diligence to stakeholder alignment, to the gathering of financial data and analysis. A thorough checklist will enable you to pinpoint and close gaps between where your organization is today and where it must be prior to you ring the IPO bell.

It’s a smart idea to consult a tax professional when you are planning to go public. This will assist you in understanding the different types equity compensation and how see this page they affect your tax cost. You can then prepare accordingly. For example, if you’ve made an 83(b) election, be aware that you may be subject to a substantial increase in ordinary income tax deductible on IPO day, and if you’re holding incentive stock options (ISOs) It is crucial to consider the possibility of alternative minimum tax liability.

An IPO preparation checklist should also provide information regarding the requirements for compliance with regulations that are associated with an IPO, including the Securities and Exchange Commission’s (SEC) registration and disclosure rules. The checklist for preparing your IPO should also contain the essential steps to prepare and file your Draft Registration Statement / S-1, which includes the submission of both EDGAR and instances of iXBRL.