Notes on starting a small company.
General education, not legal or financial advice. Starting a small company is mostly paperwork and habits. Getting the early decisions right, and building good habits from the first week, saves a great deal of trouble later.
Early decisions
Make these with a qualified accountant or attorney who knows your state.
Choose a structure
Sole proprietorship, LLC or corporation: each has different rules and costs.
Register the name
Check that the name is available, then register it as your state requires.
Get the right numbers
Ask which federal and state identification numbers and local licenses you need.
Open a business account
A separate bank account from day one.
Habits from day one
Habits are cheaper than fixes.
Keep money separate
Business money in the business account, personal money in yours.
Keep every receipt
Photograph them and file them the same week.
Write it down
Simple written agreements for every sale or service.
Set money aside
Put a share of each payment aside for the bills you know are coming.
A first-month checklist
Small steps that set up the rest of the year.
- Set up simple bookkeeping, even a spreadsheet
- Create an invoice template with your business details
- Make a calendar of filing and renewal dates
- Back up important documents in two places
- Write down how you will price your work
Ask early
A short paid consultation before you sign a lease, a loan or a large contract costs far less than fixing a mistake afterwards. Bring your questions written down, and ask what you should watch for.
Simple systems worth setting up early
Small habits make the first year much calmer.
One calendar
Put every filing date and renewal in one place with reminders.
One folder
Scan every contract, receipt and letter into a single organized folder.
One weekly hour
Review money in and out, unpaid invoices and upcoming dates.
One checklist
Write down how you do recurring tasks so someone else could do them.
Common questions
General education only. Speak with a qualified professional about your own business.
Do I need a lawyer or accountant to start?
Many people start without one, but a short consultation on structure and record-keeping can prevent expensive mistakes.
How should I set my prices?
Start from your real costs and the time each piece of work takes, then compare with similar offers nearby.
When should I hire help?
When a repeating task keeps you from the work only you can do, and the numbers show you can pay for it.
Where can I get free help?
Local small business development centers and libraries often run free workshops and one-on-one sessions.