New Business Startup Checklist

Before You Register Anything

The SBA's own 10-step framework puts research and planning before any filing: conduct market research, write a business plan, and figure out funding first. Skipping straight to registering a name or filing formation paperwork often means redoing that paperwork later, once the business idea, structure, or name changes based on what the research turns up. See our guides on how to research your competitors and how to choose a business idea for the research step specifically.

Choose a Structure, a Name, and a Location

Once the idea is validated, pick a business structure, since it affects registration requirements, taxes, and personal liability; see our guide on how to choose a business structure for the tradeoffs between a sole proprietorship, partnership, LLC, and corporation. Then choose a name that is available in your state and, if you want nationwide protection, not already trademarked with the USPTO. Decide where the business will operate from, since that affects which state's filing fees, licenses, and taxes apply.

File Your Formation Paperwork With the State

An LLC files Articles of Organization and a corporation files Articles of Incorporation with the Secretary of State (or equivalent agency). State filing fees vary widely, from $35 in Montana to $500 in Massachusetts. A sole proprietorship operating under the owner's own legal name typically skips this step entirely, though a different business name usually still needs a separate DBA, or "doing business as," filing with the state or county.

Get Your Tax IDs

Once the state approves the formation filing, apply for a free EIN directly from the IRS; it's typically issued immediately online. Some states also require a separate state tax ID for income tax withholding or other state-level obligations, which you apply for directly with the state's tax agency.

Apply for Licenses and Permits, and Register for Sales Tax

Most businesses need at least a general business license from their city or county, and many industries require additional licenses, such as health permits for food businesses or professional licenses for regulated fields. If the business sells taxable goods or services, register for a sales tax permit with the state's revenue agency, usually at no cost. Check with your city, county, and state licensing boards directly, since requirements vary significantly.

Open a Business Bank Account

Per the SBA, a business bank account keeps business funds separate from personal funds, which supports the liability protection an LLC or corporation offers and makes bookkeeping and tax preparation far simpler. Banks typically ask for the EIN (or Social Security number for a sole proprietorship), the formation documents, and a business license to open the account.

A Suggested Order and Timeline

In practice, most businesses move through research and planning, then structure and name, then state filing, then EIN, then licenses and sales tax registration, then the bank account, roughly in that order, since each later step usually requires paperwork from the step before it. The total time varies by state processing speed and by how many licenses the specific business needs; some states approve formation filings within days online, while others, or paper filings, can take several weeks.

Beneficial Ownership Reporting

Federal beneficial ownership information reporting, once required of most new U.S. companies, currently applies only to foreign entities registered to do business in a U.S. state or tribal jurisdiction, per FinCEN. Check FinCEN's own site for the current rule before assuming either way, since this requirement has changed more than once.

Not Every Step Applies to Every Business

A sole proprietor working alone from home under their own legal name may need nothing more than a general business license and, if selling taxable goods, a sales tax permit. A multi-member LLC hiring employees and leasing commercial space works through nearly every item on the checklist. Treat this as a full list to check against, not a set of steps every business must complete.

Keep a Paper Trail From Day One

Save the approved formation document, the EIN confirmation letter, every license and permit, and the bank account paperwork together from the start. Lenders, landlords, and clients routinely ask for copies of these documents, and recreating them later costs more time than filing a folder would have.

Multi-State Businesses Have an Extra Checklist Item

If the business will operate in a state other than where it was formed, it generally needs to register there too, as a foreign LLC or foreign corporation, which means a second filing fee and often a second registered agent. Add this to the checklist early if the plan already includes more than one state.

Hiring Employees Adds Its Own Checklist

The moment a business hires its first employee, it takes on state unemployment insurance registration, workers' compensation insurance in most states, and federal and state payroll tax withholding, on top of everything already listed here. Plan for this separately rather than assuming the startup checklist covers it.

This Is Not Legal or Tax Advice

Which licenses, permits, and registrations a specific business needs depends on its industry, location, and structure. Confirm requirements with your state, county, and city agencies, and talk to a tax professional about which steps apply to your specific situation.