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Step 1
Draft a business plan for the new business. The business plan should cover demographics, financing, repayment and outline sales goals for at least five years. The business plan will help you get financing, if it is needed.
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Step 2
Decide which type of entity you wish to become. You can choose from incorporation, limited liability corporation, partnership, non-profit incorporation or sole proprietorship. Once you have decided, visit the IRS website (see Resources below) to fill out the appropriate paper work.
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Step 3
Apply for an employment identification number (EIN). The EIN will be needed for many of the next steps, including opening a bank account and, depending on state and local rules, obtaining certain licenses.
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Step 4
Apply for a state sales tax license. The state sales tax license allows you to purchase items for resale without paying sales tax. The sales tax will be paid by the person who purchases the item from you, and you will forward the the sales tax information to your state's financial office.
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Step 5
Apply for any other licenses your state, county and town may require. Different businesses have different licenses, but most states, counties and cities (or towns) will require the business owner to have an occupational license. If the business is food related or uses and disposes of wastes (such as vehicle oil or gas), you will have to apply for the appropriate license through the EPA or Department of Agriculture.
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Step 6
Once all of the licensing is in place, start conducting business. Open a checking account for the business, turn on any utilities in the store or office and stock the office or store with the proper administrative items (pens, paper, computer, point of sale register and software). If you are starting a retail business, order and purchase your inventory. Keep the inventory on the low side during the first month. Afterward, you will be able to adjust the inventory orders to the point where you are ordering once every couple of weeks or once a month.
