Start your business — the complete 2026 checklist

Four structures cover ~99% of small businesses in the US: Sole Proprietorship, LLC, S-Corp, and C-Corp.

Most US small businesses choose LLC. It gives you personal liability protection, simple pass-through taxation, and low formation cost. Switch to S-Corp election later once net income exceeds the break-even point.

Your business name must be unique within your state. Search the Secretary of State business database before you commit to a name and order business cards.

• Reserve vs register: Reservation holds the name for 60–120 days while you prepare formation paperwork. Registration happens when you file your Articles of Organization (Step 3).
• DBA / fictitious name: If you want to operate under a different name than your registered LLC, file a DBA (\"doing business as\") with your county or state.
• Check domain availability: Before locking in a name, search for the matching .com domain on a registrar. Most business names also get a Twitter/X handle, LinkedIn page, and Google Business Profile.
• Stuck on a name? Use the Mubboo Business Name Generator to brainstorm 12–18 candidates from your industry and keywords, then check .com availability and USPTO trademark conflicts.

File the Articles of Organization (LLC) or Articles of Incorporation (Corp) with your state. your state charges — for an LLC filing and — for a corporation.

• Articles of Organization (LLC): Names the entity, lists registered agent, and identifies organizers. One-page document in most states.
• Processing time: Online filings typically return formation certificates in 1–10 business days. Paper filings take 2–6 weeks. Expedited processing ($50–500) is available in most states.
• Operating Agreement: Not required for filing but strongly recommended even for single-member LLCs. Banks often ask to see it before opening business accounts.

The EIN (Employer Identification Number) is your federal tax ID. The IRS issues it free at irs.gov. Anyone offering to get you an EIN for a fee is reselling a free government service.

• Required if you have employees, file payroll taxes, or open a business bank account in the LLC's name.
• Solo LLCs without employees technically don't need one for federal tax filing, but get one anyway — most banks won't open a business account without one.
• Apply online during IRS hours (Monday–Friday 7am–10pm Eastern). Online applications return the EIN immediately. Paper Form SS-4 takes 4–6 weeks.

Mixing personal and business money is the #1 way to lose your LLC's liability shield ("piercing the corporate veil"). Open a dedicated business checking account before you take your first payment.

Bring to the bank:

• EIN confirmation letter (from Step 4)
• Articles of Organization (from Step 3)
• Operating Agreement (recommended)
• Photo ID for all signers
• Initial deposit ($25–500 depending on bank)

National banks (Chase, Bank of America, Wells Fargo) offer business accounts with monthly fees of $15–25 (waivable with minimum balance). Online business banks (Mercury, Bluevine, Relay) offer no-fee accounts and are popular with online businesses.

Meeting investors or partners? Before sharing financials with a potential investor, lender, or business partner, send a signed NDA. The Mubboo NDA Generator creates a mutual or one-way agreement in two minutes.

Your tax setup depends on your structure and your state.

• Federal income tax: LLCs default to pass-through — business profit flows to your 1040 Schedule C and is taxed at your personal rate plus self-employment tax.
• Quarterly estimated taxes: If you expect to owe $1,000+ at filing, pay quarterly estimates (April 15, June 15, Sep 15, Jan 15) to avoid underpayment penalties.
• Sales tax: If you sell tangible goods, you likely need a state sales tax permit. Most states issue them free through the Department of Revenue.

Licensing requirements vary by state.

• Industry licenses: Food service, construction, cosmetology, healthcare, financial services, alcohol sales, and child care all require industry-specific state licenses.
• City and county permits: Most cities require a local business license or zoning permit before you can operate from a commercial location.
• Home-based businesses: Check your municipal zoning code and HOA rules. Some residential zones prohibit client visits or commercial signage.

The single biggest mistake new business owners make is waiting until tax season to organize their books. Set up basic accounting before you take your first dollar.

• Pick accounting software: QuickBooks, Wave (free), FreshBooks, Xero. The expense isn't the software — it's the time to undo bad books later.
• Categorize every transaction: Tag business expenses by IRS Schedule C categories. Connect your bank account so transactions auto-import.
• Quarterly estimated taxes: Set aside 25–30% of net income for federal + state + self-employment tax. Pay quarterly to avoid penalties.
• 1099s for contractors: If you pay any individual or non-corp business $600+ in a year for services, you must issue a 1099-NEC by January 31 of the following year. For rent, royalties, and other miscellaneous payments, use 1099-MISC.
• Invoice from Day 1: Even before you have accounting software, send professional invoices for every engagement. Sequential numbering plus consistent formatting establishes the paper trail tax season needs.

Your LLC shields personal assets from business debts, but insurance is what actually pays a claim. Three types apply to most small businesses:

• General liability: Covers slip-and-fall, property damage, and basic product liability. Typical cost: $30–60/month for a service business.
• Professional liability (E&O): Required if you give advice (consulting, accounting, design, legal, IT). Typical cost: $50–125/month.
• Workers' comp: Required in nearly every state once you hire your first W-2 employee. Premium is calculated as a percentage of payroll.

Compare quotes from at least three providers — premiums vary widely for the same coverage. Hiscox, Next, Thimble, and Embroker target small business and tech-enabled industries. Industry-specific carriers (construction, food service) often beat generalists.

With formation, EIN, banking, taxes, licenses, books, and insurance handled, the actual launch is the easy part.

• Register your domain matching your business name. Use a major registrar (Cloudflare Registrar, Namecheap, Google Domains).
• Set up Google Business Profile (free) — this is how local customers find you in Google Maps and Search.
• Build a website — even one page with your name, services, and contact info beats no website. Carrd, Squarespace, and Wix can be live in an afternoon.
• File your annual report on time every year. Missing the deadline can suspend your LLC's good standing.