Start with a tested idea and a simple plan, then work out startup costs, pick a name, choose a structure, register with your state, get tax IDs (an EIN is free from the IRS), research licenses and permits, open a business bank account, talk to an insurance agent, and get found online before opening day. The SBA lists the same core steps; your state and city decide the details.
The order that saves time and money
- Test the idea. Talk to 10 to 20 likely customers and check who already sells the same thing nearby.
- Write a one-page plan. Who you serve, what you sell, how you reach customers and what it costs.
- Count startup and monthly costs. Separate one-time costs from bills that repeat every month.
- Pick a name and check it. Search your state business registry, trademarks and domain availability before you print anything.
- Choose a structure. Sole proprietorship, LLC or corporation changes paperwork, taxes and personal liability.
- Register. Most structures register with the Secretary of State; a DBA may be needed for a trade name.
- Get tax IDs. Apply for a free EIN with the IRS and check state tax registrations such as sales tax.
- Research licenses and permits. State, county and city requirements can all apply.
- Open a business bank account. Keep business money separate from day one.
- Insurance and opening prep. Ask an agent what coverage fits, then set up your website, Google listing and payment tools.
What depends on what
| Step | Needs first | Why |
|---|---|---|
| Register the business | Name and structure | The filing uses both |
| EIN | Registration (for LLCs and corporations) | The IRS asks for the legal name and entity type |
| Bank account | Registration and EIN | Banks usually ask for formation documents and the EIN |
| Licenses | Location and activity | Rules depend on what you do and where |
| Website and Google listing | Name, phone, address or service area | Your details should match everywhere |
Where to get free help
- SBA business guide for the national overview.
- Small Business Development Centers (SBDCs) for free one-on-one advising in most states.
- Your Secretary of State website for registration.
- Your city or county business tax and licensing office for local permits.
Worked example
A cleaner named Jo follows the order: talks to customers, writes a short plan, lists costs, picks a name, registers, gets an EIN, checks licenses, opens a bank account, buys insurance and launches a website and Google profile. Each step unlocks the next.
Common questions
How long does it take to start a small business?
Registration can be done in days in many states, but licenses, permits, inspections and a location can take weeks or months. Build an opening timeline that counts back from your target date.
Do I need an LLC to start?
No. Many owners start as sole proprietors. An LLC adds a filing and fees but can separate business liability. Compare options on the SBA structure page or with a professional.
What should I do first?
Test the idea and estimate costs before you spend on a name, logo or lease.
Sources
- SBA: 10 steps to start your business
- SBA: Choose a business structure
- SBA: Register your business
- IRS: Get an employer identification number
- America's SBDC: find a Small Business Development Center
Sources checked October 6, 2026. Rules, fees and forms change; confirm details with the agency or provider before you act. This guide is general information, not legal, tax or insurance advice.
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