Starting a new business is exciting — but it can also be overwhelming. From choosing the right legal structure to registering for taxes and opening a business bank account, every decision you make at the beginning affects your long-term success. This page guides you through the essential steps for setting up a new business, so you can launch with confidence.
Why Proper Setup Matters
A strong foundation helps protect your personal assets, reduces tax headaches, and positions your company for growth. Skipping setup steps can lead to costly penalties, rejected filings, or lost opportunities.
Steps to Set Up a New Business
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Choose a Business Structure
Decide whether to form a sole proprietorship, partnership, LLC, or corporation. Each option has different tax and liability implications.
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Register Your Business Name
Check state databases to ensure your chosen name is available, then register it with the appropriate agency. If using a “Doing Business As” (DBA) name, file the required paperwork.
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Obtain an EIN (Employer Identification Number)
Apply for an EIN through the IRS. This is required for hiring employees, opening a business bank account, and filing federal taxes.
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Register for State and Local Taxes
Depending on your state, you may need to register for sales tax, franchise tax, or other local business taxes.
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Open a Business Bank Account
Keep your personal and business finances separate by opening a dedicated account in your business name.
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Get Required Licenses and Permits
Many industries require local, state, or federal licenses. Check your industry’s requirements before starting operations.
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Set Up Bookkeeping and Accounting
Choose a reliable accounting system or software. Accurate records will save time during tax season and help you track growth.
Common Mistakes to Avoid
- Mixing business and personal finances.
- Forgetting to register with the state or local tax authority.
- Delaying business insurance coverage.
- Overlooking industry-specific permits or certifications.
Resources for New Business Owners
- IRS: Starting a Business
- U.S. Small Business Administration – Launch Your Business
- Your state’s Secretary of State or Department of Revenue website for business registration and tax setup.
Get Started Today
Whether you’re setting up an LLC, corporation, or sole proprietorship, the key is getting started on the right foot. Contact us for guidance, resources, or connections to trusted professionals who can help ensure your new business is compliant from day one.