Startup Essentials

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Your structure affects taxes, liability, and how you pay yourself.

 LLC (Most Common Starting Point) 

• Simple, flexible, and protects your personal assets
• Great for freelancers, service businesses, and small companies
• You can elect S‑Corp status later without forming a new entity

S‑Corp (Tax Advantage Once You Earn ~$60k–$80k in Net Profit)

• You pay yourself a reasonable salary and take the rest as distributions
• Best for businesses with consistent, predictable profit
• Savings typically begin when your net profit (after expenses) reaches $60k–$80k

Important:  

The threshold is based on profit, not revenue.

Below that range, the cost of payroll, bookkeeping, and additional tax filings often outweighs the tax savings.

C‑Corp (For Startups Planning to Raise Capital)

• Allows shares, investors, and stock options
• Strong liability protection
• Best for companies planning to scale, reinvest profits, or seek venture capital

Sole Proprietorship (Not Recommended)

• No liability protection
• Harder to build business credit
• Higher audit risk

What You Need to File

• Business name
• Registered agent
• Articles of Organization
• State filing fee (varies by state)

Should You Use a Registered Agent?

• Privacy (keeps your home address off public records)
• Professional handling of legal mail
• Compliance reminders

If privacy matters or you work from home, a registered agent is the smarter choice. You can also use your registered agent’s address on public filings instead of your home or a virtual office, which protects your privacy and keeps your personal address off the public record. 

Your Employer Identification Number is required for:

• Banking
• Taxes
• Hiring
• Vendor accounts
• Business credit

The EIN is free from the IRS. Never pay a third‑party website for it. ( Internal Revenue Service | An official website of the United States government )

Even single‑member LLCs need this document.

• Defines ownership
• Protects your liability status
• Helps with banking
• Helps with business credit
• Prevents disputes later

Separate personal and business finances from day one. Mixing funds can “pierce the corporate veil,” meaning you lose liability protection.

What You Need

• EIN
• Operating Agreement
• Articles of Organization

Used for business credit, vendor accounts, and some contracts.

Free through Dun & Bradstreet. ( Claim Your Free D-U-N-S Number - Dun & Bradstreet )

Depending on your industry, you may need a business license, seller’s permit, or professional license.

Check your city, county, and state requirements.

Use accounting software to track income, expenses, and taxes from day one.

Good bookkeeping prevents tax issues and supports business credit.

Recommended Support

CPA Consultation — A CPA can help you choose the right tax structure (LLC vs S‑Corp), set up your chart of accounts, and avoid costly mistakes.

Asset Protection Manager — Helps ensure your business structure, banking, and documentation protect your personal assets and maintain your liability shield.

For additional information on business tools and software, please refer to our Resources page. This page includes trusted products our team has used and vetted to support new and growing businesses.

Start with free platforms that help customers find you and build trust quickly.

Free + High‑Impact Platforms

• Google Business Profile — The most important free tool for visibility, maps, and local search.
• Facebook Business Page — Easy to set up, great for credibility, and still widely used. 
• LinkedIn Business Page — Professional presence, trust‑building, and great for B2B.
• Instagram — Visual credibility and brand personality.
• TikTok — High organic reach if you create short, simple content.
• YouTube — Second‑largest search engine; great for tutorials, intros, and credibility.

Low‑Cost Essentials

Domain name (yourbusiness.com)

Business email (you@yourbusiness.com)

Simple website (even a one‑page site is enough to start)