I have replied to these questions countless times. It’s not only payroll but all expenses for 3 month in most contracting fields. However in the cable world 6 months Is more like it since they are getting away with net 60 and 90.
Best advice; look at some of my or Microman’s posts on the subject. Short lesson get the advice from an business attorney, CPA, business insurance agent (not your car & home agent) all should be in the state you reside and you may need some in the state you work in. Also unless you are independently wealthy you will need a relationship and line of credit from a banker before you need the money.