Q: What do I need to do to take my company public?

A: Going public has always been the brass ring of entrepreneurship - the way to show the world that your company has arrived. But going public isn't the best option for every fast-growing company, especially in light of the Sarbanes-Oxley legislation enacted in 2002 after a wave of corporate and accounting scandals.

The best reason to take your company public is access to investors' wallets. Once your company goes public, you can tap the public markets for money to expand your operations, acquire other businesses, reward investors and recruit employees. The biggest downside is cost. Costs go well beyond the expense of hiring lawyers, accountants and investment bankers who will prepare the legal documents, conduct the audit, and shop the deal to mutual fund portfolio managers and high net worth individuals.

Once your company files its Initial Public Offering (IPO), you'll need to foot the bill for ongoing expenses to make sure your company complies with stock exchange rules and SEC regulations. Lori Hoberman, co-chair of the Corporate and Securities Group at Fish & Richardson PC in New York City, estimates that a company filing for an IPO should expect to pay approximately $750,000 in legal fees and another $750,000 for printing, accounting and other professional services. That's on top of the 6 percent to 7 percent commission that typically goes to the underwriter, the investment bank that markets the deal. After the deal closes, a small to mid-size public company can expect to pay $400,000 to $1 million a year for SEC filings, Sarbanes-Oxley compliance, systems testing, D&O (liability insurance) and compensation of outside directors, Hoberman said.