Business Formation Checklist: Starting Your Business Right

Starting a business involves numerous legal and administrative steps. This checklist will help ensure you don't miss anything important.

Before You Form Your Business

☐ Conduct market research and validate your business idea
☐ Write a business plan
☐ Choose a business name (check availability)
☐ Conduct a trademark search
☐ Choose your legal structure (LLC, corporation, partnership, etc.)
☐ Consult with a business attorney and accountant

Forming Your Business Entity

☐ File formation documents with your state (Articles of Organization for LLC, Articles of Incorporation for corporation)
☐ Pay state filing fees
☐ Create an Operating Agreement (LLC) or Bylaws (corporation)
☐ Appoint initial directors/managers
☐ Issue membership interests or stock
☐ Hold initial organizational meeting
☐ Maintain a corporate records book

Federal Requirements

☐ Obtain an Employer Identification Number (EIN) from the IRS
☐ Register for federal taxes as appropriate
☐ Understand your federal tax obligations

State and Local Requirements

☐ Register for state taxes (income, sales, payroll)
☐ Obtain required state business licenses
☐ Obtain required local business licenses and permits
☐ Register with your city or county
☐ Check zoning requirements for your business location

Financial Setup

☐ Open a business bank account (keep personal and business finances separate)
☐ Set up business accounting software
☐ Establish a bookkeeping system
☐ Set up payroll if you have employees
☐ Obtain business credit card

Insurance

☐ General liability insurance
☐ Professional liability (errors and omissions) insurance if applicable
☐ Workers' compensation insurance if you have employees
☐ Commercial property insurance
☐ Business interruption insurance
☐ Directors and officers insurance if applicable

Intellectual Property

☐ Register your trademark
☐ File for patents if applicable
☐ Register copyrights for original works
☐ Implement trade secret protections

Contracts and Agreements

☐ Customer/client contracts
☐ Vendor/supplier agreements
☐ Employee offer letters and employment agreements
☐ Non-disclosure agreements
☐ Non-compete agreements (where enforceable)
☐ Independent contractor agreements

Ongoing Compliance

☐ File annual reports with the state
☐ Hold required meetings and maintain minutes
☐ Renew licenses and permits annually
☐ Stay current on tax filings
☐ Review and update contracts regularly

Find a business law attorney near you on NinjaLawyers to help you navigate the formation process.