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New Business Setup Checklist

Everything to set up before you take your first dollar — in the right order.

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Before You Open (Legal & Structure)

Choose your business structure (sole prop, LLC, S-corp, etc.)
Register your business name with your state
Apply for an EIN from the IRS (free, ~10 minutes online)
Get any required local licenses or permits

Money Basics

Open a dedicated business bank account
Open a business credit card (separate from personal)
Choose a bookkeeping method (cash vs. accrual)
Set up a simple chart of accounts

Get Paid & Track Spending

Choose an invoicing tool or template
Set your payment terms (Net 15/30, deposits, late fees)
Set up a system to track receipts and expenses
Decide how often you'll reconcile your bank account

Stay Compliant

Research your state and local sales tax requirements
Calendar your estimated quarterly tax due dates
Set aside a % of every payment for taxes (25–30% is a safe start)

Frequently Asked Questions

What order should I do these steps in?

Legal structure and your EIN come first, since you'll need them to open a business bank account. After that, banking and bookkeeping setup should happen before you take your first payment.

Do I really need a separate business bank account?

Yes, strongly recommended even for sole proprietors — it makes bookkeeping dramatically simpler and is required to maintain liability protection if you're an LLC or corporation.

How much should I set aside for taxes?

25-30% of every payment is a safe starting estimate for most small businesses, though your actual rate depends on your income level, structure, and state. A tax professional can give you a more precise number.

Is this checklist different if I'm in Canada?

Yes — see the Canada version of this checklist, which covers CRA registration, GST/HST thresholds, and Business Number requirements instead.

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