Starting a new business is an exciting time for both start-up entrepreneurs and experienced business owners.
A great work ethic, a positive mindset, and a determination to succeed are all good starting points, but the administrative side of setting up a business requires careful attention. Here are a few key considerations to keep in mind when launching your own business in the United States.
- Choose your business structure.
- Choose your business name.
- Register your business.
- Choose your domain name, web hosting plan and social media handles.
- Obtain required business licenses and permits.
- Open your business bank account.
- Purchase business insurance.
- Hire staff (if required) and set up your accounting system.
- Build an online presence and create a professional website.
Choose your business structure.
When starting a new business, choosing the structure that suits you best will also determine your business’s liability, taxes, and essential paperwork.
- Being a Sole Proprietorship is the most straightforward business to set up, but it does not provide liability protection.
- If you are entering into a partnership, the shared responsibility can be worth the share of profits. Setting up an LLC (Limited Liability Company) offers liability protection if needed, along with flexible tax options. It is popular among small to medium-sized businesses because of its simple setup, which provides added protection.
- A corporation (C-Corp or S-Corp) is best suited for raising capital, but it comes with more regulations and tax implications.
Nonprofit and other charitable organizations come with special tax-exempt status.
Choose your business name.
It is essential to choose a great business name that succinctly explains what your business does and elevates your brand. It must be unique within the state where you are setting up your business.
It is essential to verify the availability of your business name through your state’s Secretary of State website and consider trademarking your business with the United States Patent and Trademark Office (USPTO) for national protection. It is also important to choose a Business name where the domain name is available, so these need to be done at the same time. The last thing you want to do when starting a new business is register a business name and not have a matching or very similar domain name, or find out that the name you want is already registered by someone else.
Register your business.
For a Sole Proprietorship or partnership, business owners will usually register a Doing Business As (DBA) with their county or state authority. For Corporations, business owners must file formation documents, such as Articles of Organization or Incorporation, and pay any relevant state fees to complete the filing process.
Applying for an Employer Identification Number (EIN) is essential, and it is issued free by the Internal Revenue Service (IRS). This is required for hiring employees, opening a business bank account, and paying federal taxes.
Choose your domain name, web hosting plan and social media handles.
Help.com’s AI domain name generator will create some awesome domain name ideas for you. Your domain name will become part of your business’s website address, so choosing a good match will aid your marketing and branding, making it easier for customers to find your business online.
Simply enter your business name or some keywords about your new enterprise, and watch the results roll in! For more ideas, simply start a new search. The results will display the domain names that are already taken and those that are still available. If your preferred domain name is already taken, our expert brokerage services can help you find an alternative.
Once you have secured your unique domain name, you will need to choose a web hosting plan that best suits your business needs. The web hosting plan will support your website’s operations, including emails, digital storage options, subdomains, free security, backups, and more. This ensures once your website is created, it operates smoothly and efficiently, creating a reliable and stable base for your busines operations.
Help offers three web hosting plans using affordable and reliable shared hosting to suit most businesses. If you’re unsure which hosting plan will work best for you, simply complete our brief questionnaire to receive our recommendation. Don’t worry, as it’s easy to upgrade or downgrade at any time. If you already have a web hosting provider but would like to migrate to one of Help’s web hosting plans, then please contact our friendly team, who can assist you.
Obtain required business licenses and permits.
There are United States Federal requirements for licenses relating to alcohol, medications, aviation, and firearms, to name a few! There may also be specific state and local health permits, sales tax licenses, professional licenses, and zoning permits. You can use the Small Business Administration’s license & permits tool on their website to determine what permits may apply to your new business.
Open your business bank account.
Having a business bank account keeps your personal cash separate from your business cash, and it’s an essential requirement for LLCs and corporations. To obtain a business account, you would typically require a few forms of identification, including your EIN, formation documents, and all required business licenses.
You should also understand your tax obligations on a Federal, State and local basis and register with your state’s Department of Revenue or equivalent government body. If you are unsure, Help.com recommends consulting a professional tax specialist for assistance.
Purchase business insurance.
Depending on your business, you may require General Liability Insurance, Professional Liability Insurance, Workers’ Compensation Insurance (which is often mandatory if you have employees) and Commercial Property Insurance.
Hire staff (if required) and set up your accounting system.
- Place job ads on appropriate job seeker platforms.
- Interview and prepare employment contracts.
- Verify work eligibility (Form I-9).
- Report new hires to your state.
- Comply with federal and state labor laws.
- Set up a payroll system and withhold taxes.
- Display mandatory labor law posters.
- Choose accounting software (QuickBooks, Xero, Wave).
- Hire a CPA or bookkeeper if needed.
- Track income, expenses, receipts, and invoices.
- Prepare for quarterly tax filings and annual reporting.
- Comply with Ongoing Requirements
- Compile Annual reports (LLCs/corporations).
- Renew licenses and permits.
- File taxes regularly.
- Update business information with the state as needed.
Build an online presence and create a professional website.
Now that you have all the paperwork set up, hired key staff members, and secured your domain name and web hosting, it’s time to get your business online and create a professional website!
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Our forthcoming AI website builder is designed to create a stylish and straightforward platform that supports sole proprietors and start-up companies in launching their online presence hassle-free and cost-effectively in just minutes!
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Frequently Asked Questions
1. What is the best business structure to choose when starting a new business in the United States?
The proper business structure affects liability, taxes, and growth.
A Sole Proprietorship is simple but offers no liability protection. Partnerships share responsibilities and profits but also liabilities. An LLC is popular for small to medium businesses because it combines liability protection with flexible tax options and is relatively easy to set up. Corporations (C-Corp or S-Corp) are best suited for raising capital, but they involve more regulations. Nonprofits benefit from tax exemptions, but they come with strict rules.
Therefore, your choice depends on the size of your business, risk tolerance, and long-term goals.
Why is it important to register my business name and secure a domain name?
Registering your business name ensures it’s legally valid, unique in your state, and helps protect your brand identity. You may also want to trademark it nationally through the USPTO for added protection. At the same time, securing a domain name is essential for your online presence. A relevant, easy-to-remember domain boosts credibility and helps customers find you. Help.com’s AI-powered domain generator makes it simple to find available names and offers brokerage support if your preferred choice is already taken.
What licenses, permits, and registrations are required before officially opening a business?
Licenses and permits vary depending on the industry and location.
Federal permits apply to sectors like alcohol, firearms, and aviation, while state and local requirements may include health permits, zoning approvals, or sales tax licenses. Sole Proprietors usually file a DBA, while LLCs and Corporations must submit formation documents. You’ll also need an EIN from the IRS for taxes, employees, and banking. Using the SBA’s license tool helps you determine which applies.
Completing registrations early ensures legal compliance and prevents costly delays.
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