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Hey Reader!

Is this your first time registering your business? Don’t miss these 7 essential steps to start smart!

Starting your own business is one of the most rewarding things you can do. But let’s face it, the registration process can feel like a confusing maze of paperwork, forms, and rules. If you’ve ever thought, “Where do I even start?”, know that you’re definitely not alone. Just in the month of March 2025 the Census Bureau announced there were 452,255 business applications; that’s about 14,589 businesses PER DAY! https://www.census.gov/econ/bfs/current/index.html​

Let me repeat in case you weren't shocked the first time you read that stat:

So really, you are NOT alone! And fortunate for you, I am here to give you insights into creating a savvy startup.

Whether you're launching your dream consulting firm, an online boutique, or a mobile food truck, getting legally registered is a foundational step you cannot afford to skip. It’s more than just checking boxes, though. Registration means building your business on a solid, legal foundation.

Ask any business attorney and they’ll likely tell you horror stories about having to unwind and rework many clients’ registration fumbles. Is this where attorneys make most their money? Maybe, maybe not; I’m no attorney! But, if those same clients went to a business attorney from the get-go, I bet their legal bills wouldn’t have been nearly as high had they done the registration correctly from the beginning. So, in the spirit of starting strong, I highly recommend contacting your local biz attorney for guidance.

Understanding that you, savvy startup owner, may want to DIY parts of your new venture, this article will walk you through seven essential aspects of the registration process your business will likely go through. Review these steps before you go to your business attorney so you can have a better understanding of the process. These steps are a great starting point to get you going confidently, and with minimal stress. They are the same steps I walk through when beginning a new entity, and I’m excited to share them with you today.

✅ Step 1: Registering Your Business with the Secretary of State

The first and most important legal step is registering your business with the Secretary of State—or the equivalent office in your particular state. This process establishes your business as a recognized legal entity, allowing you to operate in your state or region.

You’ll need to have your business name ready. This might sound simple, but it’s important to check that the name you want isn’t already taken or too similar to another company in your state. Most Secretary of State websites have a search tool to help you verify name availability.

Next, you’ll select your business structure. Will you operate as a sole proprietor, an LLC, a partnership, or a corporation? Each has different legal and tax implications, so take time to consider what’s best for you. Check out my recent article, The Savvy Way to Register Your Business, which outlines your options. Then, you’ll complete the required forms and pay a registration fee. Many states now allow you to do all of this online, and in less than an hour! Time is money, my friends!

🛠 Step 2: Getting the Licenses and Permits You Need

After registering with the state, the next step is to determine what licenses or permits your business may need. These vary based on your location, industry, and the nature of your work. For example, if you’re opening a food-based business, you may need a health department inspection and food service permit. If you plan to sell products, you’ll likely need a sales tax license. If your business operates from your home, your city might require a home occupation permit.

This step often gets overlooked, unfortunately, despite it being a crucial component. Operating without the right licenses can lead to fines or, worse, getting shut down. To find out exactly what you need, check with your city’s business office or use the U.S. Small Business Administration’s online license tool to guide you.

🧾 Step 3: Applying for an Employer Identification Number (EIN)

An EIN, or Employer Identification Number, is a unique number assigned by the Internal Revenue Service (IRS) to identify your business for tax purposes. It’s like a Social Security number, but for your company! Even if you don’t have employees yet, you may still need an EIN to open a business bank account, file your taxes, or apply for certain licenses and contracts.

Getting an EIN is free and can be done quickly online through the IRS website. It’s a simple step, but a powerful one that helps you separate your personal finances from your business identity.

💳 Step 4: Opening a Business Bank Account (And Keeping It Separate!)

If you do nothing else on this list, or have already done everything else on this list (yay!), please, please, please do this next step: open a separate bank account for your business. One of the most common mistakes I see new entrepreneurs make is mixing personal and business finances. This can create confusion, add administrative time, invoke tax headaches and possible legal complications, especially if your business is ever audited or sued.

To open an account, most banks will require your business registration documents, EIN, and sometimes a business license. Choose a bank that offers small business-friendly services, like low fees or accounting software integration. Keeping your finances organized from the beginning will make everything—from tax filing to applying for funding—much easier down the line.

🌐 Step 5: Registering with Your Local City or Municipality

State registration from Step 1 is just one piece of the puzzle. Many cities and counties have their own rules for business registration. This is especially important if your business has a physical location, serves local clients, or is regulated by local laws.

You may need a local business license, zoning clearance, or specific permits to operate legally in your community. Failing to register at the local level can result in penalties or force you to pause operations while you catch up on compliance. Call your local city clerk’s office or visit their website to find out what’s required in your area.

⏰ Step 6: Setting Renewal Reminders for All Licenses and Permits

Once you've gone through the work of obtaining your licenses and permits, don’t forget to keep them up to date. Every license has an expiration date, and missing a renewal deadline can cause serious disruptions. You might have to pay late fees, or in some cases, stop operations until your license is reinstated.

To avoid this, I recommend setting calendar reminders for each renewal deadline. Use your digital calendar (like Google Calendar or Outlook), and if you’re more old-school, jot the dates down in your planner or on a whiteboard in your workspace. Staying ahead of these renewals will keep your business running smoothly. It also helps you to plan for the cost of these renewals. Incorporate them into your budget for the year/month!

📂 Step 7: Storing Your Documents Securely (Digitally & Physically)

After completing all your registrations and licensing, you’ll have several important documents—don’t lose them! Store everything in a secure folder on your laptop and back it up on an external hard drive or cloud storage service. If something happens to your computer, you’ll still have access to your critical paperwork.

I also suggest printing hard copies and keeping them in a dedicated binder or fire-proof file cabinet. Having quick access to your documents can be a lifesaver when applying for loans, opening accounts, or responding to government requests.

🧾 Quick Recap: Your Registration Checklist

Here’s a quick summary of the key steps covered in this article:

1. Registering your business with the Secretary of State or equivalent in your region
2. Acquiring all required licenses and permits for your industry and location
3. Applying for an EIN with the IRS (even if you’re a solo entrepreneur)
4. Opening a dedicated business bank account and keep personal funds separate
5. Registering your business with your local city, county, or municipality
6. Setting calendar reminders for license and permit renewals
7. Storing all documents securely on your laptop, in the cloud, and in printed form

👩🏾‍💻 Why I Do This Work

Helping new entrepreneurs like you navigate the startup journey is at the heart of what I do. As the founder of Build a Savvy Startup, I work every day with aspiring business owners who want to launch their dream—but feel stuck or overwhelmed by the process.

That’s why I’m writing a book called Build a Savvy Startup. This book is designed to walk you step-by-step through the entire startup process—from idea to implementation—so you can launch with confidence and clarity. In addition, I’m developing a suite of digital courses tailored for busy, first-time entrepreneurs. These flexible, self-paced resources will help you learn and apply critical startup knowledge on your own time, no matter how packed your schedule is. Sign up for the pre-release here!

Stay savvy,

Caroline

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