Between picking a business idea and actually opening your doors, there's a stretch of paperwork that catches almost every first-time owner off guard, not because any single step is hard, but because nobody hands you the full list up front. Here's roughly the order most of it needs to happen in.
Choose and Clear Your Business Name
Before anything else, settle on a business name and check that it's actually available: search your state's business entity database, the USPTO trademark database, and domain availability. Everything downstream, your entity formation, your EIN application, your bank account, gets built around this name, so it's worth confirming it's clear before moving forward.
Choose Your Business Structure and File Formation Paperwork
Decide whether you're operating as a sole proprietorship, forming an LLC, or setting up a corporation. If you're forming an LLC or corporation, file the appropriate formation documents, typically articles of organization or articles of incorporation, with your state's Secretary of State office, and pay the associated filing fee.
This step also usually requires naming a registered agent, so decide in advance whether that's going to be you or a paid service.
File a DBA if You're Using a Different Name
If you plan to operate under a name other than your own legal name or your entity's registered legal name, file a DBA at the appropriate state, county, or city level. Many banks won't let you open a business account under a name that doesn't match your legal filings without one.
Get Your EIN
Apply for an Employer Identification Number directly through the IRS website, for free, once your entity is formed and named. You'll need this number for almost everything that follows, including opening a bank account and applying for most local licenses and permits.
Open a Business Bank Account
With your formation documents, EIN, and DBA (if applicable) in hand, open a dedicated business bank account. Keeping business and personal money separate from day one protects your liability shield if you've formed an LLC, and it makes bookkeeping dramatically simpler from the start.
Research and Apply for Licenses and Permits
Requirements vary enormously by state, county, city, and industry, so check all three levels of government, plus any industry-specific licensing boards. A home-based consulting business might need almost nothing beyond a general business license, while a restaurant will need health permits, a food handler's license, possibly a liquor license, and more.
Your city or county clerk's office and your state's business portal are usually the fastest way to get a complete list specific to your situation.
Set Up Sales Tax Registration if You'll Be Collecting It
If you're selling taxable goods or services, register for a seller's permit or sales tax license through your state's department of revenue before you make your first sale. Collecting sales tax without being registered to do so, even unintentionally, can create real problems later.
Look Into Business Insurance
Before you open, at minimum look into general liability insurance, and depending on your industry, professional liability or workers' compensation once you have employees. Some landlords and clients will require proof of insurance before you can even sign a lease or a contract.
Set Up Basic Bookkeeping Before You Take Your First Dollar
Choose bookkeeping software or a simple spreadsheet system before revenue starts coming in, not after. Reconstructing your first few months of transactions later, once you've mixed everything together, is a genuinely painful task that's easy to avoid by setting things up correctly from transaction one.
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