Starting a business involves legal decisions that are easier to make before you open. This checklist covers the basics, but requirements vary by state and industry.
Core steps
- Choose a business structure, such as sole proprietorship, LLC or corporation.
- Pick a name and check availability and trademark conflicts.
- Register with your state and obtain required licenses and permits.
- Get an Employer Identification Number from the IRS if needed.
- Open a separate business bank account.
- Understand sales tax and income tax obligations.
- Get appropriate insurance.
Protect yourself
- Use written contracts with customers and vendors.
- Keep personal and business finances separate.
- Document ownership if there are partners.
- Protect intellectual property.
If you hire people
- Verify work eligibility.
- Comply with wage, hour and safety laws.
- Carry workers' compensation as required.
- Understand worker classification.
Get help
The Small Business Administration, SCORE and local business development centers offer free guidance. A lawyer and accountant can help you choose a structure and avoid costly mistakes. See our guides to LLCs and operating agreements.
Frequently asked questions
Do I need a lawyer to start?
Not always, but consider one for complex structures or partnerships.
Can I operate under my own name?
Often yes as a sole proprietor, but you may need a DBA for another name.