What are the steps to starting a business?

1. Conduct market research 2. Create a business plan 3. Raise capital for the business 4. Identify where you'll be doing business 5. Choose an entity type - LLC, corporation, etc. 6. Pick a business name 7. Register your business 8. Apply for a federal EIN and state tax ID 9. Get required business licenses and permits 10. Get a business bank account

Is the process for starting a business the same in every state?

No. Each state has it's own process for legally forming a business. Learn how to start a business in your state.

How do you choose a business structure?

The structure you choose will play a major role in how your business is taxed, managed, and owned. It will also determine how much personal liability you have. Each business structure has different benefits and drawbacks. Learn more about the different types of business entities.

Is it better to be an LLC, Corporation, or Sole Proprietor?

With an LLC or corporation, you take on considerably less risk and have better control over how taxes affect your earnings compared to operating as a sole proprietor. Sole proprietorships have no liability separation from the business they conduct. LLCs and corporations are business entities formed by filing articles with a state agency, typically the Secretary of State. Because these entities are subject to state filing fees and reporting requirements, they cost more to start and maintain. However, in exchange for the extra fees and paperwork... Read more.

What is a business plan?

A business plan should outline the following questions: What am I selling? Who is buying? How do I connect to buyers? What are my costs? How much do I charge?

How to Start a Business

Here’s our guide to starting your business the right way, with tricks to protect your privacy, independence, and time from the start.

Start a Business

1. Brainstorm & Research

In the early days, you’ll want to spend some time brainstorming and researching. That means drawing up a business plan, looking into funding options, and doing some research on how to make your idea competitive in your market. But don’t let this step slow you down. You’ll learn as you go.

Business Ideas Business Plan Help Open a Franchise Explore Funding Options Small Business Loans Minimize Your Risk

2. Name Your Business

Choosing a business name is one of the first steps you’ll need to take. That’s because when you’re starting a business, you’re creating something that’s separate from you, it’s owner. And so, it needs its own name! But that name needs to meet some requirements—mainly, it needs to be available. Determining if it is can be tricky. Here are some guides to help.

Business Name Requirements How to Reserve a Business Name How to Check Availability How to Check for Trademarks LLC Name Tips Business Name Vs. Trademark

3. Build a Business Identity

Once you have a name, you can start building an identity for your business. Early choices harden fast, so it’s important to protect your privacy and create a professional image right away. To do that, you need an address, domain name, website, email address(es), and a phone number for your business.

Understanding Business Identity Business Address Business Email Address Business Phone Number Business Website Business Domain Name

4. Form an Entity

Next, decide which type of entity you’d like to form. LLCs are popular for being simple and flexible to run, while corporations provide prestige and a framework for bringing in investors. To form your company, you’ll need a registered agent and a business address ready so you can file paperwork with the state and pay a fee. If you skip this step, you can still have a business as a sole proprietor or general partnership, but you won’t have the asset or privacy protection.

How to Start an LLC How to Start a Corporation How to Start a Nonprofit Get a Registered Agent LLCs Vs. Corporations How to Protect Your Assets

5. Organize Legal Documents

Your business has internal documents, too. You’ll need written rules for how your business will operate (an operating agreement for an LLC and bylaws for a corporation). These aren’t filed with any agency, but they’re important nonetheless. We’ve compiled a free library of every legal form you can possibly need that you can access with a Northwest account.

All Legal Forms LLC Forms Corporation Forms Nonprofit Forms Lawsuit Help Get a Free Account

6. Get Licenses, Permits & EIN

Once you’ve filed your paperwork with the state, you have a business. But to operate, your business needs a few more registrations. You’ll need to get an EIN from the IRS (basically a social security number for your business). You’ll also likely need a business license and maybe some permits, depending on where you live and what your business activity is.

How to Get a Business License How to Get a DBA How to Get a Seller's Permit How to Get an EIN LLC or Business License First? Professional LLC Requirements

7. Maintain & Grow

If you’ve made it here, you’re all set. But your business needs regular maintenance and, if it’s growing, additional registrations. You’ll need to file regular reports with your state (every year or every other year), pay taxes, and register your business in any states where you’re expanding. You may also consider a federal trademark.

File Annual Reports Foreign Qualification LLC Taxes Get a Trademark Hire Contractors Reinstate a Business

Start a Business The Right Way

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