Commendations ... Grants are usually accompanied by terms and conditions. If not, contact www.irs.gov and explain the specifics (with your documentation in hand). Then, verify with www.irs.gov via phone and note the representative's employee number. Your local IRS will also file the taxes for your or assist you in filing the taxes.

You mention you received a grant to open a home for homeless vets (which sounds like a charitable endeavor). Did you open tax-exempt non-profit organization for this?

You should be able to find information in the grant documents regarding what the funds can be used for. Most grants are very specific in what you can use the money for. If in your grant application you stated that you would use some of the funds for start-up costs, that should include paying salaries and you should be okay.