9 Steps to Starting a Business

Starting a business is exciting, but it can also feel overwhelming if you don’t know where to begin. Whether you’re opening a store, working from home, or launching an online service, following a clear plan will make the process easier and help you avoid costly mistakes.Here are 9 simple steps to guide you from idea to launch.

1. Choose a Business Idea

Start by deciding what you want to offer:

• Product, service, or both
• Home-based, retail, restaurant, online, etc.

Make sure the idea solves a need or provides value to your customers.

2. Research Your Market

Before spending money, find out:

• Who is your ideal customer?
• What problem are you solving?
• Are there competitors nearby?
• What makes you different?

A little research now saves you time and money later.

3. Pick a Business Name

Choose a name that is:

• Easy to pronounce
• Unique
• Available as a website domain
• Not used by another business in your state

You can search name availability on your state’s business portal.

4. Decide Your Business Structure

Your business must be legally formed. The most common options are:

• LLC (Limited Liability Company)
• S-Corporation
• C-Corporation
• Sole Proprietorship
• Partnership

An LLC or S-Corp is popular because it protects your personal assets and can offer tax advantages.

Tip: American Elite Tax & Accounting can help you choose the best structure and file your formation documents correctly.

5. Register Your Business With Your State

Once you pick a structure, you must legally register your business. This step includes:

• Filing your formation documents
• Paying state fees
• Receiving approval from your Department of Financial Institutions or equivalent

After registration, you are officially recognized as a legal business.

6. Get an EIN (Employer Identification Number)

The EIN is a business tax ID number issued by the IRS.You need it for:

• Opening a business bank account
• Filing taxes
• Hiring employees
• Applying for licenses
• Working with wholesalers and vendors

You can obtain an EIN online from the IRS website in minutes.

7. Open a Business Bank Account

Never mix personal money with business money.Opening a business checking account helps you:

• Track income and expenses properly
• Separate business finances for tax purposes
• Maintain legal liability protection (especially for LLCs and S-Corps)

Very important: Use this account for everything related to your business.

8. Set Up Accounting & Bookkeeping

This step is essential for taxes, financial planning, and clean record keeping.Use:

• QuickBooks
• A bookkeeping service
• A monthly accountant

You must track:

• Sales
• Purchases
• Payroll
• Expenses
• Taxes
• Inventory (if applicable)

Getting help from a professional early saves time, stress, and avoids tax penalties.

9. Apply for Licenses & Permits

Depending on your business type and location, you may need:

• Seller’s permit or resale certificate
• City business license
• Food dealer license (restaurant or grocery)
• Tobacco license
• Industry-specific permits

Always check local city requirements before opening.

Final Advice

Starting a business is not just about an idea; it is about planning correctly. When you follow the right steps, your business becomes stronger, more profitable, and easier to manage. If you need help with:

• LLC or S-Corp setup
• EIN registration
• Business bank documents
• Bookkeeping or payroll
• Sales tax or merchant services
• Tax planning for your new business

American Elite Tax is here to help every step of the way.

📍 Oak Creek, Milwaukee, Franklin, Greenfield, Greendale

📞 414-335-4555

🌐 www.americanelitetax.com