Make It Real: Choose and Register Your Business Structure
Every business starts with an idea, but documentation makes it real. The first important decision is structure: single proprietorship, partnership, LLC, or corporation. Each trades simplicity versus liability protection, flexibility versus tax implications, short-term convenience versus long-term scalability. A sole proprietorship can launch a tiny, low-risk idea, but an LLC offers liability protection and legitimacy without the formalities of a corporation. Plans to raise funds or issue shares? A company (C-corp for scalability and venture preparedness; S-corp for pass-through taxation with constraints) may be your runway.
Once you choose, follow through:
- Register with your state and, if needed, file a DBA (doing business as) for your trade name.
- Get an EIN from the IRS; it’s your business’s social security number and unlocks banking, payroll, and tax filings.
- Appoint a registered agent if your state requires one.
- Draft the internal paperwork—operating agreement (LLC) or bylaws (corporation)—even if your state doesn’t strictly mandate it. These documents prevent future messes when money, ownership, and decision-making collide.
- Secure a business address and business contact information; even if you’re home-based, a virtual office or reputable mailbox service can protect privacy and project professionalism.
Proper registration is more than a formality; it’s the guardrail against personal risk and the starting bell for everything else you’ll build.
Build the Map: A Business Plan That Actually Guides You
A business plan isn’t an academic exercise; it’s the film script you’ll shoot over the next 18 months. Keep it punchy but pointed. Start with the problem you’re solving, who’s suffering from it, and why your solution is the better way forward. Then quantify the playing field: market size, competitive landscape, pricing logic, and how you’ll win your first 100 customers.
A strong plan usually covers:
- Your offer and value proposition—what’s truly different and why it matters now.
- Your audience—segments, buying triggers, objections, and the path to purchase.
- Go-to-market plan—channels, partnerships, and a simple 90-day acquisition strategy.
- Operating model—how you deliver, from suppliers to fulfillment to service levels.
- Financials—12 to 24 months of projected revenue, gross margin, operating costs, and cash flow. Be conservative on revenue, realistic on expenses, and obsessive about cash runway.
If you’re seeking funding, this plan becomes your calling card. If you’re bootstrapping, think of it as your quiet cofounder—keeping you honest when shiny new opportunities whisper sweet detours.
Separate the Money: Set Up Banking and Your Financial Stack
Your next move is mechanical but mission-critical: separate business and personal finances. Commingling funds muddies your books, complicates taxes, and can even weaken your liability shield. Open a dedicated business checking account (and often a savings account for taxes), then connect it to your accounting software on day one.
What to look for in a bank:
- Low or no fees, modern online banking, and effortless ACH and wire features.
- Strong integrations with accounting tools and payment processors.
- Responsive support because you will need a human at the worst possible moment.
Build a lean financial stack:
- Accounting software to automate bank feeds, categorize transactions, and keep real-time P&L visibility.
- Merchant processing or invoicing tools for how you’ll get paid—cards, ACH, or both.
- A basic chart of accounts tailored to your model, so you can track unit economics without guesswork.
- A recurring schedule for tax set-asides—sales tax, payroll tax, and quarterly estimates. Treat tax money like it isn’t yours, because it isn’t.
You’ll sleep better knowing every dollar has a destination and every transaction has a home.
Play by the Rules: Licenses, Permits, and Compliance
The rules of the game vary by industry and location, but ignoring them is a costly shortcut. Start with zoning and local business licenses, then branch into your sector’s must-haves. Food and beverage? Health department inspections and ServSafe certifications. Construction or trades? Contractor licenses and bonding. Professional services? State licensure, continuing education, and scope-of-practice rules. Selling products? Sales tax registration and reseller permits. Handling data? Privacy and security obligations—especially if you touch health, finance, or children’s data—plus clear consent and retention policies.
Don’t skip safety: OSHA basics for workplaces, workers’ comp if you have employees, and insurance that matches your risk—general liability, professional liability, cyber, or product liability as needed. If compliance feels like a maze, consult a qualified advisor early. It’s cheaper than remediation, kinder than enforcement, and faster than fixing preventable missteps when momentum matters most.
Make Them Care: Brand Positioning and Identity
A business exists on paper; a brand exists in people’s minds. Before you design anything, sharpen your positioning: who you serve, the job you solve, and the promise you keep better than anyone else at your price point. Write a one-sentence positioning statement your team can memorize and your customers can repeat.
Then give it a face and a voice:
- Name: searchable, pronounceable, and not already crowding your category. Run a trademark check, buy the domain, and reserve social handles.
- Visual identity: logo, color palette, and typography that telegraph your vibe at a glance, from button labels to billboards. Keep it simple and legible across screens and swag.
- Messaging: a clear headline, one-liner value proposition, and three proof points. Speak human. Cut jargon.
- Brand voice: playful or premium, bold or calm—pick a lane and keep it consistent.
- Website baseline: a fast homepage, clear offer page, pricing or request-a-quote, credibility signals (testimonials, case studies, guarantees), and obvious calls to action.
A brand is not a coat of paint; it’s the emotion customers feel when they consider buying from you. Done right, it converts curiosity into trust—and trust into revenue.
FAQ
Do I need an LLC to start a business?
No, but an LLC is a popular choice because it separates personal and business liability and signals credibility to partners, banks, and customers.
When should I get an EIN?
Get it as soon as you form your business; you’ll need it for banking, payroll, vendor forms, and most tax filings.
Is a business plan required if I’m self-funded?
Not required, but highly useful; it clarifies your numbers, pinpoints risks, and keeps your daily decisions aligned with your goals.
Can I use my personal bank account at the beginning?
You shouldn’t; commingling funds complicates taxes and can undermine liability protections.
What permits do most businesses overlook?
Zoning approvals, sales tax registration, home-occupation permits, and industry-specific professional or health licenses are common misses.
How much should I set aside for taxes?
A simple rule of thumb is 25–35% of net profit, but your exact rate depends on entity type and location—check with a tax pro.
Do I need brand assets before I launch?
Yes, at least the basics: a name, a logo, a domain, a simple website, and a clear value proposition to guide your first marketing steps.
What accounting method should I choose?
Cash accounting is simpler for many small businesses, while accrual offers better visibility for inventory or subscription models.
