A public offering can provide private companies with a lot of opportunities for expansion, but it also exposes them to rules and regulation they were not required adhere to as private companies. It is crucial that companies know all the risks and obstacles they could face prior to making the move to public markets.

If your company is contemplating an IPO or not, creating an ideal-practice checklist should be the first step in ensuring that you’re prepared for the process. The checklist for preparing for an IIPO should cover everything from due diligence to stakeholder alignment, to the gathering of financial data and analysis. A thorough checklist will allow you to discover and close gaps in your company’s current condition and where it should be before ringing that IPO bell.

It is a good idea to seek out a tax professional if you’re planning to go public. This will enable you to understand the different kinds of equity compensation, and how they affect your tax cost. You can then plan accordingly. For instance, if made an 83(b) option, be aware that you may be liable to a significant jump in IT due diligence checklist taxable ordinary income on IPO day, and if you’re holding incentive stock options (ISOs) it’s important to prepare for the possibility of an alternative tax liabilities that are minimal.

An IPO preparation checklist should provide information on the regulatory compliance requirements associated with an IPO and should include the Securities and Exchange Commission’s (SEC) registration and disclosure rules. Your ipo preparation checklist should also contain the essential steps for preparing and filing your Draft Registration Statement/ S-1, which includes submitting both EDGAR and iXBRL instances files.