New Business Checklist
Starting a business is exciting, but it can also feel overwhelming. There are many important steps to complete before opening your doors. While every business is unique, this checklist covers many of the common tasks new business owners should consider as they build a strong foundation.
Use this checklist as a guide throughout your startup journey, and remember that not every item applies to every business.
Step 1: Develop Your Business Plan
Before investing time and money into your business, take time to plan.
□ Define your products or services.
□ Identify your target customers.
□ Research your competition.
□ Create a pricing strategy.
□ Estimate startup costs.
□ Prepare a budget and cash flow forecast.
□ Determine how your business will be funded.
A thoughtful business plan helps guide decisions and can be valuable when seeking financing.
Step 2: Choose Your Business Entity
Selecting the right business structure is one of the most important decisions you'll make.
□ Decide whether a Sole Proprietorship, LLC, Partnership, Corporation, or S Corporation election best fits your goals.
□ Understand the legal and tax implications of each option.
□ Consider liability protection, taxes, and future growth plans.
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Step 3: Register Your Business
Depending on your business structure and location, you may need to register with your state or local government.
□ Register your business entity.
□ Register your business name (if applicable).
□ Obtain any required local licenses or permits.
□ Register for state taxes when required.
Step 4: Obtain an EIN
Many businesses need an Employer Identification Number (EIN) from the IRS.
□ Apply for an EIN if required.
□ Keep your EIN confirmation letter in a safe place.
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Step 5: Open a Business Bank Account
Keeping business and personal finances separate makes bookkeeping easier and helps establish your business.
□ Open a business checking account.
□ Consider opening a business savings account.
□ Obtain a business credit card if appropriate.
□ Set up online banking.
Step 6: Set Up Your Accounting System
Good bookkeeping starts on day one.
□ Choose accounting software.
□ Set up your chart of accounts.
□ Develop a system for storing receipts and documents.
□ Decide how often you'll reconcile your accounts.
□ Establish procedures for invoicing customers.
Step 7: Understand Your Tax Responsibilities
Knowing your tax obligations early can help prevent costly surprises.
□ Determine your federal tax filing requirements.
□ Register for state taxes if required.
□ Understand estimated tax payment requirements.
□ Learn about deductible business expenses.
□ Develop a recordkeeping system.
Step 8: Hire Employees (If Applicable)
Hiring your first employee involves more than issuing a paycheck.
□ Register for payroll tax accounts.
□ Verify work eligibility.
□ Set up payroll.
□ Obtain workers' compensation insurance if required.
□ Understand payroll tax filing deadlines.
Step 9: Protect Your Business
Every business faces risks. Consider appropriate protections.
□ Obtain business insurance.
□ Review cybersecurity practices.
□ Back up important records.
□ Protect sensitive customer information.
□ Develop written policies and procedures as your business grows.
Step 10: Build Your Business Presence
Help customers find and trust your business.
□ Create a professional website.
□ Set up a business email address.
□ Create a Google Business Profile (if applicable).
□ Establish social media accounts.
□ Develop your branding and marketing materials.
Step 11: Keep Learning
Successful business owners never stop learning.
□ Continue building your financial knowledge.
□ Review your financial statements regularly.
□ Stay informed about tax law changes.
□ Seek professional advice when needed.
□ Explore additional articles in the BSE Learning Library.
How BSE Can Help
Starting a business involves many moving parts, but you don't have to navigate them alone. At BSE Accounting & Consulting, we help entrepreneurs understand their options, complete required registrations, establish sound bookkeeping practices, and stay compliant with ongoing tax and reporting requirements.
Whether you're just getting started or looking for guidance as your business grows, we're here to help you build a strong financial foundation.