By Evan J. Marwell ยท Reviewed August 6, 2026

A sensible U.S. startup sequence

  1. Validate the offer. Identify the customer, problem, alternative, price range, and proof of demand.
  2. Choose the real operating location. Home, commercial premises, online-only, mobile service, inventory location, and employee location can all matter.
  3. Compare structures. A sole proprietorship may begin without forming an entity, while LLCs and corporations are generally created under state law.
  4. Choose and clear the name. Check state records, assumed-name rules, trademarks, domains, and customer confusion.
  5. Form or register where required. File with the appropriate state office and consider whether registration in another state is triggered by actual operations.
  6. Get tax identifiers and accounts. Determine whether an EIN, state tax account, sales tax permit, payroll account, or local tax registration is needed.
  7. Check licences and permits. Use state and local official sources plus the regulator for the activity.
  8. Set up money and records. Banking, bookkeeping, invoicing, payment processing, contracts, receipts, tax records, and an audit trail should be planned before volume grows.
  9. Review insurance and risk. General liability, professional liability, property, vehicle, workers' compensation, cyber, and industry-specific coverage may be relevant.
  10. Launch and measure. Track gross margin, cash flow, sales conversion, refunds, customer acquisition cost, and time per job.

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Formation is not permission to do everything

Creating an LLC or corporation does not automatically supply every business licence, professional credential, building approval, health permit, sales tax registration, employer account, or local zoning approval. Treat each as a separate question.

Useful official sequence: The SBA's launch guidance covers location, structure, name, registration, federal and state tax IDs, licences and permits, banking, and insurance. Use it as a map, then follow the official links for the state and locality.

Questions to answer before filing

  • Where will work actually be performed?
  • Will customers visit a premises?
  • Will inventory be stored or shipped from another state?
  • Will anyone be hired as an employee?
  • Does the activity require professional or industry licensing?
  • Will the business collect sales tax or use a marketplace facilitator?
  • Will the owner seek outside investment or share ownership?
  • Will a non-U.S. owner, worker, bank account, or parent company be involved?