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There are a number of legal and practical steps you should take when hiring for the first time. For example, you will need to get an employer ID number for tax purposes, register with your state's labor department, and post required notices. Among the practical matters to take care of are setting up payroll withholding, getting insurance, and getting started on good personnel practices, such as setting up employee files and drafting policies. For more information, see Nolo's article Hiring Your First Employee: 13 Things You Must Do.