Sole proprietorship
The simplest structure. You and the business are the same for legal and tax purposes.
Start here
Starting a business comes with paperwork. Doing it in the right order saves time and money.
This guide covers choosing a structure, registering, getting an EIN, licenses, bank accounts, insurance and ongoing filings. We are not a government agency and cannot file anything for you.
Choose a structure
Your structure affects taxes, liability and paperwork.
LLC
A limited liability company can separate business liability from personal assets. Taxes depend on choices.
Corporation
Corporations have more formal rules and filing requirements.
Partnership
Two or more owners share the business.
Register your business
Registration rules vary by state.
State filing
LLCs and corporations file with the state, often the Secretary of State.
DBA
If you use a name other than your legal name, you may need a doing business as filing.
Registered agent
LLCs and corporations usually need a registered agent to receive legal papers.
Get an EIN
An EIN is a federal tax ID.
Free from the IRS
Apply free at IRS.gov.
Who needs one
Businesses with employees, partnerships, corporations and many LLCs.
Bank accounts
Banks often ask for an EIN.
Licenses and permits
Most businesses need some licenses.
Local licenses
Cities and counties may require business licenses.
State licenses
Some professions need state licenses.
Federal licenses
Some industries need federal permits.
Zoning
Home-based businesses may need zoning approval.
Bank accounts and money
Keep business money separate.
Business account
Open a business checking account.
Records
Track income and expenses from day one.
Payment processing
Choose how you will accept payments.
Insurance
Insurance protects your business.
General liability
Covers injuries and damage claims.
Professional liability
Covers mistakes in services.
Workers' compensation
Required in most states if you have employees.
Ongoing filings
Paperwork continues after you start.
Annual reports
Many states require annual reports with fees.
Taxes
File income, payroll and sales taxes.
Beneficial ownership
Companies formed in the United States no longer have to file beneficial ownership reports with FinCEN; a final rule effective August 14, 2026 made that exemption permanent. The requirement still applies to certain foreign companies registered to do business in the U.S. Ignore letters or emails demanding a fee to file one.
Step-by-step: starting your business
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Write a simple plan
Describe your products and customers.
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Choose a structure
Pick the structure that fits.
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Check name availability
Search your state's business database.
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Register with the state
File formation documents if required.
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Get an EIN
Use the free online application on IRS.gov and save the confirmation letter as a PDF.
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Get licenses
Check local, state and federal requirements.
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Open a bank account
Bring your formation papers and EIN letter to open a checking account used only for the business.
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Get insurance
Choose coverage that fits.
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Set up records
Use bookkeeping software or spreadsheets.
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Mark filing deadlines
Put annual reports and taxes on a calendar.
Step-by-step: hiring your first employee
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Register as an employer
Register with your state for payroll taxes.
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Get workers' compensation
Check state requirements.
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Collect forms
Get Form W-4 and Form I-9.
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Set up payroll
Use payroll software or a service.
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Know labor laws
Check wage and hour rules.
Sample call to a local licensing office
An example of questions to ask.
You: I am starting a home-based bakery. What licenses do I need?
Clerk: You may need a business license and a food permit.
You: Are there zoning rules for home businesses?
Clerk: Yes, here is the zoning office number.
You: What are the fees?
Clerk: They are listed on our website.
You: Thank you. How long does approval take?
Sample note to a registered agent service
Use this if hiring a registered agent.
Subject: Registered agent service inquiry Hello, I am forming an LLC in [state] and would like information about your registered agent service, including fees, what mail you forward and how you notify clients of legal papers. Thank you, [Your name]
Example startup costs (illustrative numbers only)
These numbers are made-up examples. Fees differ by state and city.
| Item | Example amount | Note |
|---|---|---|
| State LLC filing | $100 (example) | Varies by state |
| DBA filing | $25 (example) | Varies by county |
| EIN | $0 | Free from the IRS |
| Business license | $50 (example) | Varies by city |
| Insurance | $500 per year (example) | Varies by coverage |
| Bookkeeping software | $15 per month (example) | Optional |
Example monthly budget worksheet (fill in your own numbers)
This blank-style worksheet shows one way to make room for business startup paperwork costs. The sample amounts are examples only; replace them with your own.
| Category | Example amount | Your amount |
|---|---|---|
| Take-home income | $3,000 (example) | $____ |
| Housing | $1,100 (example) | $____ |
| Utilities and phone | $250 (example) | $____ |
| Food | $450 (example) | $____ |
| Transportation | $300 (example) | $____ |
| Insurance | $200 (example) | $____ |
| Debt payments | $250 (example) | $____ |
| Savings for surprise costs | $150 (example) | $____ |
| Everything else | $300 (example) | $____ |
| Left over (income minus all costs) | $0 (example) | $____ |
Follow-up schedule
Use this schedule as a rough guide for staying on top of a business startup paperwork issue. Adjust it to any deadlines in your paperwork, which always come first.
| When | What to do |
|---|---|
| Day 1 | Gather your documents and write a short summary of the problem. |
| Day 1 to 3 | Contact the other side and ask for what you want, in writing. |
| About 1 week later | Follow up if you have not heard back, and note the date. |
| About 2 weeks later | Send a firmer written follow-up with a clear deadline. |
| After the deadline | Escalate to a manager, a complaint office or another outside option. |
| Ongoing | Keep every reply and update your notes after each contact. |
Helpful tips
Getting started
- Check name availability.
- Get your EIN free.
- Keep money separate.
- Ask about licenses.
Avoiding scams
- Watch for official-looking mail asking for fees.
- Use .gov websites.
- Do not pay for free forms.
- Verify before paying.
Staying compliant
- Mark annual report dates.
- Keep records.
- Renew licenses.
- Review insurance.
Keeping a paper trail
Good records are the single most useful tool in any business startup paperwork problem. They turn "he said, she said" into facts you can point to.
Use one folder
Keep a paper folder or one digital folder for this issue only. Put every bill, letter, receipt and screenshot in it, named with the date first so it sorts in order.
Write things down the same day
After every phone call, write the date, time, the person's name, what they said and what happens next. Notes made the same day are much more believable than memories weeks later.
Prefer writing over talking
When something important is agreed on the phone, send a short email that says "To confirm our call today..." and repeat the key points. That creates a record the other side can correct if they disagree.
Take photos and screenshots
Photos show condition and dates. Screenshots capture web pages, prices and account screens that may change later.
How to write a clear complaint
If you need to complain about a business startup paperwork issue, a short, calm, specific message gets better results than a long angry one.
- Say who you are and give any account, order or reference number.
- Describe what happened in a few sentences, with dates.
- Say exactly what you want: a refund, a repair, a correction or an explanation.
- Give a reasonable deadline, such as 10 or 14 days.
- List what you attached, and send copies, never your originals.
Read it once more before you send it. Remove anything insulting, and keep a copy of what you sent and when.
Where to escalate if you get nowhere
If the business or person does not fix the problem, there are usually outside places to turn. Which one fits depends on the issue and where you live.
Your state attorney general or consumer protection office
Most states take consumer complaints online. They may contact the business for you, and complaints help them spot patterns.
Federal agencies
The Consumer Financial Protection Bureau (CFPB) handles complaints about banks, credit cards, loans and debt collectors. The Federal Trade Commission takes fraud and scam reports at ReportFraud.ftc.gov.
Licensing boards
Many trades and professions are licensed by the state. A licensing board can look into complaints about a licensed business.
Small claims court
For smaller money disputes, small claims court is built for people without lawyers. Dollar limits and filing fees differ by state, so check your local court's website.
Your card issuer
If you paid by credit card, you may be able to dispute a charge for goods or services you did not receive as agreed. Contact your issuer quickly, because there are time limits.
Staying calm and organized
Money and paperwork problems are stressful. A simple routine makes them feel smaller.
- Set one short time each week to work on it, instead of worrying about it every day.
- Do the hardest call first, while you have the most energy.
- Write down your next single step before you stop for the day.
- Ask a trusted friend or family member to read important letters before you send them.
- Celebrate small wins, like getting a reference number or a written answer.
Call log template
Copy this into a notebook or a notes app and fill in one block for every call about your business startup paperwork issue.
Date and time
Write the date and the start time of the call, and how long you were on hold if it was long.
Who you spoke with
Get a first name, a department and, if they have one, an employee or agent ID.
What was said
Summarize what you asked for and what they told you, in your own words.
Reference number and next step
Ask for a reference or ticket number every time, and write down who is doing what next and by when.
Protecting yourself from scams
Scammers often target people who are already dealing with a stressful business startup paperwork problem. A few habits protect you.
Slow down
Scammers push urgency, saying you must act today or lose out. A real business will give you time to read and think.
Check who you are dealing with
Look up the business's phone number and website yourself instead of using a number from a text, email or pop-up. Call that number to confirm.
Watch how they want to be paid
Requests for gift cards, wire transfers, payment apps to strangers or cryptocurrency are strong warning signs. These are hard or impossible to get back.
Guard your personal information
Do not give your Social Security number, bank login or one-time passcodes to anyone who contacted you first. Real companies do not ask for your passcodes.
Report it
If you think you were targeted, report it at ReportFraud.ftc.gov and to your state attorney general. If money was taken, call your bank or card issuer right away.
Free and low-cost help
You do not have to figure out a business startup paperwork problem alone. Many sources of help cost little or nothing.
211
Call or text 211, or visit 211.org, to find local help with bills, food, housing and other needs in many parts of the country.
Legal aid
Legal aid organizations give free legal help to people with lower incomes. Search for legal aid plus your state, or visit LawHelp.org.
Public libraries
Librarians can help you find forms, print documents, use computers and locate local services.
Nonprofit credit counseling
Nonprofit credit counselors can help you make a budget and look at your options. Look for agencies affiliated with the National Foundation for Credit Counseling and ask about fees up front.
Government websites
Official sites end in .gov. They offer free forms and guides, so be cautious of sites that charge for things the government gives away.
Reading the fine print
Contracts and terms for business startup paperwork matters often hide important details in small type. These are the parts worth slowing down for.
Automatic renewal
Look for words like "renews automatically" or "continuous service." Note the renewal date and exactly how to cancel.
Fees and penalties
Search the document for "fee," "charge" and "penalty." Late fees, cancellation fees and processing fees add up.
Cancellation terms
Find how much notice you must give, how you must give it and whether any money is refundable.
Arbitration clauses
Some contracts say disputes must go to private arbitration instead of court, and may limit group lawsuits. Know whether yours does before you sign.
Changes to terms
Some agreements let the company change terms with notice. Check how they will notify you.
Signatures and blanks
Never sign a document with blank spaces. Draw a line through empty spaces or write "N/A," and get a copy of what you signed.
Questions to ask yourself first
Before you act on a business startup paperwork problem, a few minutes of thinking helps you choose the right path.
What outcome do I want?
Decide whether you want money back, a repair, a correction, more time or just an answer. A clear goal makes every message shorter and stronger.
What is my deadline?
Look for dates in your paperwork, such as due dates, response windows or warranty end dates. Deadlines decide what you must do first.
What proof do I have?
List the documents, photos and messages that support your side. If something is missing, ask for copies now.
What is it worth to me?
Weigh the money involved against the time and stress. Sometimes a quick partial fix is worth more than a long fight.
Who can help?
Think about who you could ask for advice, from a knowledgeable friend to a free local help program.
Startup paperwork checklist
Use this list.
- ☐ Structure chosen
- ☐ Name checked
- ☐ State registration filed
- ☐ EIN obtained
- ☐ Licenses obtained
- ☐ Bank account opened
- ☐ Insurance purchased
- ☐ Records set up
- ☐ Deadlines marked
- ☐ Registered agent chosen
Questions to ask before you agree to anything
Asking these questions before you sign or pay can prevent most business startup paperwork surprises.
- ☐ What exactly is included in the price?
- ☐ What is not included, and what could make the price go up?
- ☐ Can I have that in writing?
- ☐ What happens if I cancel or change my mind?
- ☐ Is there a warranty or guarantee, and what does it cover?
- ☐ Who do I contact if there is a problem later?
- ☐ When is payment due, and what payment methods are accepted?
- ☐ Are there any fees for paying late or paying early?
- ☐ How long will this take?
- ☐ Can I take a day to think it over?
Documents to keep
Keep these.
| Document | Why it matters | How long to keep |
|---|---|---|
| Formation documents | Prove business exists | Permanently |
| EIN letter | Tax ID proof | Permanently |
| Licenses | Show permission to operate | While active |
| Operating agreement | Sets ownership rules | Permanently |
| Annual reports | Show compliance | Several years |
Red flags
Be careful.
- Mail that looks official asking for fees.
- Third parties charging for EINs.
- Pressure to buy services.
- Fake government websites.
When to get professional help
Get help in these cases.
- Choosing between complex structures.
- Bringing on partners or investors.
- Hiring employees.
- Tax planning.
- EIN
- Employer Identification Number.
- LLC
- Limited liability company.
- DBA
- Doing business as.
- Registered agent
- Person receiving legal papers for a business.
- Operating agreement
- Rules for an LLC.
- Bylaws
- Rules for a corporation.
- Annual report
- State filing to keep a business active.
- Zoning
- Local land use rules.
- Workers' compensation
- Insurance for employee injuries.
- Secretary of State
- State office handling business filings in many states.
Frequently asked questions
Do I need an LLC?
Not always. Compare structures.
Is an EIN free?
Yes, from the IRS.
Do I need a business license?
Many cities require one.
What is a DBA?
A filing to use a business name.
Do I need a business bank account?
It helps keep finances separate.
What is a registered agent?
A person who receives legal papers.
Do I need insurance?
It depends on risks and requirements.
What are annual reports?
State filings to keep a business active.
Can I run a business from home?
Check zoning rules.
How do I hire employees?
Register as an employer and collect forms.
Where can I get free help?
SBA and SCORE offer free resources.
Do I need to file a beneficial ownership report?
Not if your company was formed in the United States. FinCEN permanently exempted U.S. companies in 2026.
Getting the paperwork right at the start makes everything easier later.