SOC 2 Trust Service Criteria: Complete Guide for Startups

What is SOC 2?

SOC 2 (System and Organization Controls 2) is an auditing standard developed by the AICPA that evaluates a service organization's controls relevant to security, availability, processing integrity, confidentiality, and privacy. Unlike SOC 1, which focuses on financial reporting controls, SOC 2 is specifically designed for technology and cloud service providers.

A SOC 2 report is produced by an independent CPA firm and is widely required by enterprise customers before they'll sign contracts with SaaS vendors, cloud providers, or managed service providers.

The 5 Trust Service Criteria (TSC)

1. Security (Common Criteria — Required)

The only mandatory criterion. Covers protection of the system against unauthorized access, both physical and logical:

Access controls (authentication, authorization, least privilege)
Encryption in transit and at rest
Vulnerability management and penetration testing
Security monitoring and incident response
Change management and system development

2. Availability

The system is available for operation and use as committed. Key controls:

Uptime SLA monitoring
Redundancy and failover architecture
Capacity planning and performance monitoring
Disaster recovery and business continuity planning

3. Processing Integrity

System processing is complete, valid, accurate, timely, and authorized:

Input validation and error handling
Data reconciliation processes
Job scheduling and monitoring
Quality assurance controls

4. Confidentiality

Information designated as confidential is protected as committed:

Data classification policies
Encryption of confidential data
Access restrictions and need-to-know controls
Confidentiality agreements (NDAs) with personnel and vendors

5. Privacy

Personal information is collected, used, retained, disclosed, and disposed of in conformity with the AICPA's privacy principles (aligned with GDPR, CCPA, and other privacy regulations):

Privacy notice and consent management
Data minimization
Individual rights fulfillment (access, deletion, correction)
Third-party data sharing controls

Type I vs. Type II

SOC 2 Type I — Controls are suitably designed at a point in time. Faster to obtain (2–4 months), weaker signal.
SOC 2 Type II — Controls are suitably designed AND operating effectively over 6–12 months. Required by most enterprise customers.

Which Criteria Do You Need?

Security is mandatory. The others depend on your product:

| Criteria | Who Needs It | |---|---| | Security | Everyone | | Availability | SaaS products with uptime SLAs | | Processing Integrity | Financial, healthcare, or transactional systems | | Confidentiality | B2B platforms handling sensitive client data | | Privacy | Consumer-facing products, GDPR/CCPA scope |

Most startups start with Security + Availability. Adding Confidentiality and Privacy is common for B2B enterprise vendors.

Why It Matters for Startups

Enterprise sales gating — SOC 2 Type II is a hard requirement in security questionnaires from F500 companies. Without it, deals take 6+ months longer or don't close.
Cyber insurance — Many cyber insurance providers offer better rates or require SOC 2 as a baseline.
Partnership requirements — AWS Marketplace, Salesforce AppExchange, and other ecosystems increasingly expect SOC 2.
Fundraising — Series B+ investors often include SOC 2 in technical due diligence.
Customer trust — Publishing a SOC 2 Type II report (even via a trust portal) signals maturity.

How 100x Helps

100x Engineering builds the technical foundations for SOC 2 compliance in 3 weeks:

Security controls implementation — MFA, RBAC, encryption, audit logs, and SIEM setup
Automated evidence collection — Continuous control monitoring and evidence pipelines
Vulnerability management integration — VAPT tooling and remediation workflows
Policy management systems — Structured, auditable policy documentation
Trust portal setup — Customer-facing compliance transparency pages

See our SOC 2 DIY vs. Consultant vs. Platform comparison to choose the right approach.