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How to Start a Small Business: 8 Steps

Most small businesses in the U.S. follow the same eight steps, in roughly this order. Each step links to our guide or to the official agency that handles it.

  1. Pick an idea and check the market

    Choose a business you can explain in one sentence, then look at who already sells it near you and what customers pay.

  2. Estimate your startup costs

    List every cost before opening day: equipment, licenses, insurance, first inventory and a cash cushion.

  3. Write a business plan

    Even a short plan forces the key decisions: what you sell, to whom, at what price, and how you will pay for it.

  4. Choose a business structure

    Sole proprietorship, LLC or corporation. The choice affects your personal liability, taxes and paperwork.

  5. Register with your state

    An LLC or corporation is formed by filing with your state, usually the Secretary of State, and paying a filing fee.

  6. Get an EIN from the IRS

    An Employer Identification Number is free from the IRS. You need one to hire, and most banks ask for one.

  7. Get licenses and permits

    Requirements depend on your industry, city and county. Food, child care and trades usually need the most.

  8. Open a business bank account and get insured

    Keep business money separate from personal money, and ask about the insurance your state, landlord or clients require.

How to Start a Business: Guides by Industry

  • How to Start a Photography Business

    How to start a photography business in the U.S.: pick a niche, set prices, get a free EIN, use contracts and copyright, and plan your first 90 days.

  • How to Start a Lawn Care Business

    How to start a lawn care business: choose services, check pesticide licensing, register and get a free EIN, buy the right equipment, and build a dense route.

  • How to Start a Landscaping Business

    How to start a landscaping business in the U.S.: pick services, check contractor and pesticide licenses, register, insure, price jobs and plan for the seasons.

  • How to Start a Dropshipping Business

    How to start a dropshipping business in the U.S.: pick products, vet suppliers, register, handle sales tax and meet the FTC rule on shipping times and refunds.

  • How to Start a Cleaning Business

    How to start a cleaning business in the U.S.: choose residential or commercial, register, check licenses, insure, price jobs and win clients, with sources.