What is SOC 2?
SOC 2 is an independent audit report from a licensed CPA firm that attests to how a service organization protects customer data across five Trust Service Criteria.
SOC 2 (Service Organization Control 2) reports come in two flavors: Type I attests to controls existing on a single date; Type II attests that those controls operated effectively over a 6-12 month observation window. Customers - especially enterprise customers - increasingly require a current SOC 2 Type II report before signing.
The five Trust Service Criteria are Security (mandatory), Availability, Confidentiality, Processing Integrity, and Privacy. Most small-SaaS reports cover Security only; enterprise customers may demand Availability and Confidentiality too.
First-run SOC 2 Type II for a 10-50 person SaaS typically costs $15,000-$40,000 and takes 6-12 months including the observation window. Renewal years drop to 3-6 months and $10,000-$25,000.
Why it matters for Florida small business
Florida SaaS startups can't sell up-market without a SOC 2 in hand. Increasingly required by 2026 security renewals too.
What to do
If a SOC 2 is on the horizon, get the documentation foundation in place first - the WISP Template covers about 60% of the controls auditors will ask about.