Introduction

Starting a business is exciting—but the legal setup can feel overwhelming. This step-by-step checklist will guide you through forming an LLC or a Corporation, helping you stay compliant from day one.

Step 1: Choose Your Business Structure

Select a structure that fits your ownership, liability, and tax needs.

  • LLC: Flexible, protects personal assets, pass-through taxation
  • C Corporation: Good for venture funding, separate tax entity
  • S Corporation: Similar to C Corp but with pass-through tax benefits (with restrictions)

Step 2: Register Your Business Name

Ensure your business name is available and register it with your state. Consider trademark searches for future protection.

Step 3: File with the State

  • LLC: File Articles of Organization
  • Corporation: File Articles of Incorporation

Step 4: Obtain an EIN (Employer Identification Number)

Apply through the IRS online. This number is required for taxes, hiring employees, and opening a business bank account.

Step 5: Draft Operating Documents

  • LLC: Operating Agreement
  • Corporation: Corporate Bylaws, Shareholder Agreements

Pro Tip

Even if not legally required, having internal governance documents protects founders from future disputes.

Step 6: Register for Taxes

  • Register for state and local taxes (sales, franchise, employment)
  • Set up payroll tax accounts if hiring employees
  • Consider electing S-Corp status for tax optimization (Form 2553)

Step 7: Obtain Licenses and Permits

Check your city, county, and state for required licenses by industry—health, retail, service-based, etc.

Step 8: Open a Business Bank Account

Keep business finances separate from personal accounts. Choose a bank familiar with startups.

Step 9: Set Up Accounting and Compliance Systems

  • Use accounting software or hire a bookkeeper or controller
  • Track expenses and income from the start
  • Schedule annual compliance filings and reports

Final Thoughts

With the right legal foundation, your startup is positioned for long-term success. If you need support with filings or structuring your business correctly, our team is here to help.