1. You can outsource the prototype but if you're going to get funding, you should hire in-house moving forward aka local.

1a. Ask people you know for referrals of coders they trust. Hit up local networking events. Try to find people through yourself and others you know and trust before branching out to regular hiring ways.

2. Get a corporate attorney to help set up your company and the appropriate paperwork so whoever you hire, sign the right paperwork needed. This is important.

3. Build the prototype, and haul ass. Consider talking to an IP attorney but in all seriousness, $250k isn't much. If it's going to cost you a significant amount of money, perhaps hold off on the IP registration. Don't take my word on this though, consult a few different IP attornies for better advice on that.