An IPO can provide private companies with huge growth opportunities However, it also subject them to rules and regulations they were not required to follow as a private entity. Therefore, it’s important for companies to understand the potential risks and challenges prior to taking the leap into public markets.

If your business is contemplating an IPO or not, establishing an ideal-practice checklist should be the first step to make sure that you’re prepared for the process. The checklist for preparing for an IIPO should cover everything from due diligence to stakeholder alignment, to gathering and analyzing financial data. A thorough checklist helps you to discover and close any gaps in your company’s current state and what it needs to be prior to ringing that IPO bell.

If you’re considering going public it’s recommended to consult with an experienced tax professional to ensure you’re aware of the various types of equity compensations that could impact your tax burden, and to plan according to the potential tax consequences. For example, if you’ve made an 83(b) election, be aware that you could be subject to a huge increase in taxable ordinary income on IPO day, and if you have incentive stock options (ISOs) It is important to prepare for the possibility of an alternative minimum tax liability.

A checklist for preparing an IPO must also provide information regarding the compliance requirements of regulatory compliance that come with an IPO and should include the Securities and Exchange see this page 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, as well as the submission of both EDGAR and iXBRL instances files.