{"id":5186,"date":"2016-04-04T10:47:58","date_gmt":"2016-04-04T15:47:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/first-steps.html"},"modified":"2026-05-26T09:59:00","modified_gmt":"2026-05-26T14:59:00","slug":"first-steps","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/first-steps.html","title":{"rendered":"First Steps To Start a Business"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">First Steps To Start a Business<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/catherine-hodder-esq\/\">Catherine Hodder, Esq.<\/a>\n                | Last reviewed\n        <time>\n                            May 26, 2026\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>The first steps to starting a successful business are to conduct thorough market research, develop a viable business idea, create a sound business plan, and choose the right business name and legal structure.<\/p>\n\n    <\/div>\n\n\n\n<div><p>\u00a0<\/p>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business.html\">Starting a business<\/a>\u00a0is never easy, and success isn\u2019t guaranteed. While confidence is important, so is market research and a <span data-term-id=\"54204655\">business plan<\/span>. A clear understanding of the legal aspects of entrepreneurship and a realistic expectation of how your business will make money will set you up for a <span data-term-id=\"54204676\">successful business<\/span>.<\/p>\n<p>This FindLaw article takes you through the important legal steps and questions to ask when you start your small business.<\/p>\n<p><em><strong>We make business formation EASY.\u00a0<\/strong><a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=first-steps-in-content%20wct250924184948fxb42\" target=\"_blank\" rel=\"noopener\"><strong>Click here to start your free LLC.<\/strong><\/a><\/em><\/p>\n<h2>Is Entrepreneurship for You?<\/h2>\n<p>Not everyone has the characteristics required to be a <span data-term-id=\"54204676\">successful business<\/span> <span data-term-id=\"54204680\">entrepreneur<\/span>. Before you quit your day job, read the article\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/is-entrepreneurship-for-you.html\">Is Entrepreneurship For You?<\/a>\u00a0It\u2019s an opportunity to think realistically about your work style, strengths, wants, and needs.<\/p>\n<p>Here are some key questions to answer before you get serious about running a business:<\/p>\n<ul>\n<li>\n<p>Are you a self-starter?<\/p>\n<\/li>\n<li>\n<p>Can you stay on task, or can you hire employees to help you stay on task?<\/p>\n<\/li>\n<li>\n<p>Can you afford not to bring home a salary for the first six months while you get your <span data-term-id=\"54204671\">sole proprietorship<\/span> up and running?<\/p>\n<\/li>\n<li>\n<p>How competitive are you? Have you done a competitive analysis in your area?<\/p>\n<\/li>\n<li>\n<p>How comfortable are you with risks?<\/p>\n<\/li>\n<\/ul>\n<p>Opening a small business is a risky venture. There is no guarantee you will make a profit. At the same time, the rewards are far greater than being an employee or freelancer elsewhere. You don\u2019t have to split your earnings with anyone else unless you have partners or other members of the company.<\/p>\n<h2>Have You Developed and Protected Your Business Idea?<\/h2>\n<p><span data-term-id=\"54204680\">Entrepreneurs<\/span> are creative people who make things happen. They see potential everywhere. How do you narrow your options to find the <span data-term-id=\"54204658\">type of business<\/span> and target market that are right for you? See the page\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/evaluating-your-new-small-business-idea.html\">Evaluating Your New Small Business Idea<\/a>\u00a0to work through your business idea for viability.<\/p>\n<p>If you have a lot of competition in your space, consider researching your target market. This can allow you to\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/finding-a-niche.html\">find a niche<\/a>. This is helpful for your <span data-term-id=\"54204670\">startup<\/span> marketing strategy.<\/p>\n<p>Let\u2019s say you have a business idea you think will succeed. Before you share it with investors, bring on partners, or discuss it with future members, have a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-a-non-disclosure-agreement-.html\">confidentiality agreement<\/a>\u00a0ready for them to sign. This will allow you to file an\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/injunction.html\" target=\"_blank\" rel=\"noopener\">injunction<\/a>\u00a0to stop them if they use your business idea or confidential information.<\/p>\n<h2>Do You Know <span data-term-id=\"54204670\">Startup<\/span> Business Basics?<\/h2>\n<p>Taking a business from an idea to a grand opening requires many steps. For an organized, <span data-term-id=\"54204682\">step-by-step<\/span> approach, review the article on\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/start-up-basics.html\"><span data-term-id=\"54204670\">Startup<\/span> Basics<\/a>\u00a0and print out the\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-start-up-checklist.html\">Business <span data-term-id=\"54204670\">Startup<\/span> Checklist<\/a>. These documents will help you develop a plan of action so you don\u2019t miss any details that will make your <span data-term-id=\"54204653\">new business<\/span> successful.<\/p>\n<h2>Have You Created a <span data-term-id=\"54204655\">Business Plan<\/span>?<\/h2>\n<p>A\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-a-business-plan-.html\"><span data-term-id=\"54204655\">business plan<\/span>\u00a0<\/a>guides your <span data-term-id=\"54204653\">new business<\/span>\u2019s creation, financing, and operation. It\u2019s not a legal document, but investors, <span data-term-id=\"54204665\">lenders<\/span>, and resources such as the\u00a0<a href=\"https:\/\/www.sba.gov\/\" target=\"_blank\" rel=\"noopener\"><span data-term-id=\"54204656\">Small Business Administration<\/span>\u00a0<\/a>(<span data-term-id=\"54204664\">SBA<\/span>), may want to review it.<\/p>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/contents-of-a-written-business-plan.html\"><span data-term-id=\"54204655\">Business plan<\/span> contents\u00a0<\/a>include:<\/p>\n<ul>\n<li>\n<p>Accounting software<\/p>\n<\/li>\n<li>\n<p>Analysis (market, cash flow, and break-even)<\/p>\n<\/li>\n<li>\n<p>Business accounting<\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/insurance-policies.html\"><span data-term-id=\"54204684\">Business insurance<\/span><\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/starting-a-business-license-and-permit-checklist.html\">Business licenses<\/a><\/p>\n<\/li>\n<li>\n<p>Business model<\/p>\n<\/li>\n<li>\n<p>Marketing strategy and marketing plan, including where to find your customer base<\/p>\n<\/li>\n<li>\n<p>Management team<\/p>\n<\/li>\n<li>\n<p>Product or service details, including pricing<\/p>\n<\/li>\n<li>\n<p>Search engine optimization (SEO)<\/p>\n<\/li>\n<li>\n<p>Target audience and <span data-term-id=\"54204672\">potential customers<\/span><\/p>\n<\/li>\n<\/ul>\n<p>Completing a <span data-term-id=\"54204655\">business plan<\/span> ensures you\u2019ve thought through every element of your <span data-term-id=\"54204653\">new business<\/span>.<\/p>\n<h2>Have You Picked a Unique <span data-term-id=\"54204659\">Business Name<\/span>?<\/h2>\n<p>You want to pick a unique name for your business. Having a distinct name sets you apart from competitors. It also allows you to\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-trademark-a-business-name.html\">trademark your <span data-term-id=\"54204659\">business name<\/span><\/a>. Before you pick your name and apply to register it with the\u00a0United States Patent and Trademark Office (USPTO), run a search to see if anyone else is using it. Look in the <a href=\"https:\/\/www.uspto.gov\/trademarks\/search\" target=\"_blank\" rel=\"noopener\">Trademark Search<\/a>, social media, your local clerk of court, and state databases. A federal trademark will allow you to keep others from taking your name.<\/p>\n<p>If you did not pick a unique name to start your business, you can change your name after formation with an amendment or file a DBA. A DBA (<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/dba-registration.html\">doing business as) or a fictitious name\u00a0<\/a>registration is done with your <span data-term-id=\"54204660\">Secretary of State<\/span> or County Clerk\u2019s office. See this article about <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-file-a-dba-by-state.html\">state-by-state DBA registration requirements<\/a>.<\/p>\n<h2>Legally Forming Your <span data-term-id=\"54204653\">New Business<\/span><\/h2>\n<p>You have a range of <span data-term-id=\"54204654\">business structures<\/span> to choose from when creating your <span data-term-id=\"54204653\">new business<\/span>.<\/p>\n<p>Do you want complete control over your time and working conditions? Then, you may want to be a sole proprietor. You only answer to yourself for decisions, risks, and rewards. There is a lot of <span data-term-id=\"54204662\">personal liability<\/span> associated with this <span data-term-id=\"54204654\">business structure<\/span>. Be sure you have the right kind of <span data-term-id=\"54204691\">liability insurance<\/span>.<\/p>\n<p>LLCs and corporations are great options if you want to limit <span data-term-id=\"54204662\">personal liability<\/span>. These legal entities protect the owners or individual members in case of a lawsuit.<\/p>\n<p>Partnerships, LLCs, and <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115291\/26746?subId1=first-steps%20wct250924184948p0i22&amp;auto-aff-c-corp\" target=\"_blank\" rel=\"noopener\">corporations<\/a> with more than one member allow you to:<\/p>\n<ul>\n<li>\n<p>Collaborate with others<\/p>\n<\/li>\n<li>\n<p>Work on business ideas in a group<\/p>\n<\/li>\n<li>\n<p>Share the work and the risk of the small business<\/p>\n<\/li>\n<\/ul>\n<p>If you work with another person, do you want them to be equal <span data-term-id=\"54204661\">small business owners<\/span> with you? Or do you want one person to be the active business manager and the rest equity partners?<\/p>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business.html\">FindLaw\u2019s Start a Business<\/a>\u00a0section includes several articles about <span data-term-id=\"54204654\">business structures<\/span>. Choose carefully. Once you\u2019ve registered your business, changing its structure is difficult. At this point, it would be wise to talk to a\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/business-organizations\/\" target=\"_blank\" rel=\"noopener\">business <span data-term-id=\"54204670\">startup<\/span> attorney.<\/a><\/p>\n<h2>Have You Prepared to File Taxes?<\/h2>\n<p>If you operate as a sole proprietor, you don\u2019t need a separate tax identification number to file your taxes. Your Social Security number will allow you to file your <span data-term-id=\"54204674\">business taxes<\/span>.<\/p>\n<p>But if you operate as anything other than a <span data-term-id=\"54204671\">sole proprietorship<\/span> or have any employees, you need to\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-get-an-ein-for-an-llc.html\">get an <span data-term-id=\"54204657\">employer identification number<\/span>\u00a0<\/a>(EIN). This is sometimes called a <span data-term-id=\"54204669\">tax ID<\/span>. It allows you to file your taxes under that number and apply for sales tax registration in your state.<\/p>\n<p>Some banks require an <a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=first-steps%20wct250924184948hgzxw&amp;auto-aff-ein\" target=\"_blank\" rel=\"noopener\">EIN<\/a> before allowing you to open a <span data-term-id=\"54204675\">business bank account<\/span> or a <span data-term-id=\"54204697\">business credit<\/span> card.<\/p>\n<h2>Do You Want To Open a Franchise?<\/h2>\n<p>A franchise company is a great way to start your <span data-term-id=\"54204689\">own business<\/span>, but it\u2019s not an inexpensive process. The article\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/franchise-development-and-financing.html\">Franchise Development and Financing<\/a>\u00a0will help you understand how to value a franchise opportunity. It also explains traditional and non-traditional franchise financing methods.<\/p>\n<h2>Starting an Online Business<\/h2>\n<p>A lot of small businesses have moved to e-commerce and operating online. Not having a retail space can lower your overhead costs.<\/p>\n<ul>\n<li>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/creating-an-online-business--legal-considerations-.html\">Creating an Online Business: Legal Considerations<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/forming-an-llc-for-an-online-business.html\">Forming an LLC for an Online Business<\/a><\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-start-an-ebay-business.html\">How To Start an eBay Business<\/a><\/p>\n<\/li>\n<\/ul>\n<p>Even if you collect payments digitally or through credit cards, you should account for sales and state taxes. You may have to pay the <span data-term-id=\"54204666\">IRS<\/span> <span data-term-id=\"54204699\">federal taxes<\/span> as part of the income you derive from your online business.<\/p>\n<h2>Business Financing<\/h2>\n<p><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances.html\">Adequately financing a business\u00a0<\/a>is critical to its success.<\/p>\n<p>You can start building <span data-term-id=\"54204697\">business credit<\/span> once you legally form your\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-is-a-business-entity-.html\">business entity<\/a>.<\/p>\n<h2>Hiring a Business Attorney<\/h2>\n<p>Before you meet with a business lawyer, review the\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/confidential-business-start-up-information-questionnaire.html\">Confidential Business <span data-term-id=\"54204670\">Startup<\/span> Information Questionnaire<\/a>. It will help you gather all the details you need for a productive meeting. The process of starting a <span data-term-id=\"54204653\">new business<\/span> is complex, but it\u2019s also rewarding. A\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/business-organizations\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">business lawyer\u00a0<\/a>can assist you in starting, buying, selling, or closing a business.<\/p>\n<p>\u00a0<\/p><\/div>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" 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class=\"was-this-helpful__feedback was-this-helpful__feedback--negative\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                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business.<\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":5123,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/ArticleWithBreadcrumbsController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":["SEO Title Length","External Links","Alt Text for All Images","Tags Assigned","Category 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