Start a Business (the Foundations)

Everyone wants the exciting idea; almost nobody sets the legal and financial footing first, and it costs them later.

1. 1

   Choose your entity type

   LLC is the default for most first businesses: liability protection with simple taxes. Sole proprietorship is faster but leaves your personal assets exposed; corporations matter later.

2. 2

   File with your state

   Register the LLC or corporation with your state's Secretary of State (typically $50 to $500 depending on the state). Your registered agent can be you at your own address in most states.

3. 3

   Get your EIN, free, from the IRS

   The Employer Identification Number takes minutes at irs.gov and costs nothing. Never pay a third party for the EIN itself; you are paying for convenience, not access.

4. 4

   Open a business bank account

   Separate money is the whole point of the entity. Bring your filing documents and EIN; a free business checking account is fine to start.

5. 5

   Get the insurance your work requires

   General liability is the common floor; professional liability, bonding, or industry-specific coverage depends on what you sell. Quotes are free and fast online.

6. 6

   Claim the name everywhere

   Domain, email at your domain, and the social handles. The domain search on this platform checks availability in seconds.

7. 7

   Set the money rhythm

   Basic bookkeeping from day one (even a spreadsheet), quarterly tax reminders, and a separate savings slice for taxes. Boring now, priceless in April.