Second-tier package

Set Up Business

A four-step walkthrough from business name to a working bank account. Check items as you go — your progress is saved to your account.

Your business

Add your business name in Step 1

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Business name

Saved as you type — this fills the summary line at the top of the page.

What to do

Run a name availability check using the built-in name generator tool. It screens candidates against domain availability (.com priority), USPTO trademark registrations, EUIPO trademark registrations, and phonetic/fuzzy matches. Check your state’s business registry for existing corporations or LLCs with the same or similar name — search at your Secretary of State’s website. Confirm the .com domain is available. A .com is the default for serious businesses. If the .com is taken, the name is not clean. Do not commit to the name until you have a first-pass clearance result. A clean automated result means “worth pursuing,” not “cleared.” For a definitive answer, have an attorney run a full clearance search.

Why This Matters

The name you choose becomes the legal identity of your company. It must be available at both the state level (for your entity filing) and the federal level (for trademark protection). Skipping this step means potentially paying for branding, marketing, and a website on a name you cannot legally own.

Common Mistakes

Falling in love with a name before checking availability
Using a name with a gambling, adult, or scam association in search results
Choosing a name that is too generic to trademark
Skipping the trademark check because “it’s just a startup”

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Entity type

State of formation

Formation date

Drives the 90-day countdown when the state is California.

Structure comparison

Structure	Best For	Liability Protection	Tax Treatment
Sole Proprietorship	Solo freelancers, side projects	None	Pass-through (personal tax)
LLC	Most small businesses	Yes	Pass-through (or C-Corp election)
S-Corporation	Profitable businesses under $150K	Yes	Pass-through, no self-employment tax on distributions
C-Corporation	Venture-backed, or planning to raise capital	Yes	Double taxation (21% corporate + personal on dividends)

What to do

Choose your structure — compare the four common options in the table above. File the Articles of Organization (LLC) or Articles of Incorporation (Corp) with your state’s Secretary of State. The filing fee in California is $70 for an LLC and $100 for a C-Corp. File the Statement of Information. In California, this is due within 90 days of formation. The fee is $20 for an LLC and $25 for a Corporation. Draft an Operating Agreement (LLC) or Bylaws (Corp). These internal documents define ownership, voting, and management. They are not filed with the state, but they are required to open a bank account and defend your liability shield.

Why This Matters

The legal structure determines how you are taxed, how you are protected from liability, and what paperwork you must file every year. Filing the wrong structure costs money to unwind later.

Common Mistakes

Filing in the wrong state because “Delaware is better” — for most small businesses, the state where you actually operate is the correct choice
Skipping the Operating Agreement because “we don’t need one” — the bank will require it
Missing the 90-day deadline for the Statement of Information — the state charges late fees
Choosing an S-Corp election too early — the payroll requirements add cost

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EIN

Optional — stored on your account so the checklist exports with it.

What to do

Go to irs.gov/EIN Complete Form SS-4 online. The application takes about 10 minutes. You cannot save it and come back — complete it in one sitting. Have this information ready: legal name of your entity (exactly as filed with the state); trade name (if different); responsible party’s name and SSN; entity type; reason for applying (started a new business); date the business started; closing month of the accounting year (typically December); number of employees expected; principal activity (retail, service, real estate, etc.). Receive your EIN immediately upon successful submission. Download and save the confirmation PDF — the IRS does not re-issue EIN confirmation letters instantly. If you cannot complete online (e.g., you are a foreign entity or your submission fails), you can file by fax using Form SS-4. Fax processing takes 4–6 weeks.

Why This Matters

The EIN (Employer Identification Number) is your business’s Social Security number. You cannot open a bank account, file business taxes, or hire employees without one. It is free and takes 10 minutes.

Common Mistakes

Applying for an EIN before the entity is filed — the IRS will reject the application if the entity name does not match state records
Using a personal SSN instead of an EIN for business banking
Losing the confirmation PDF — you will need it for the bank
Applying for multiple EINs for the same entity — this causes IRS confusion

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What to do

Choose a bank. For online-only businesses, digital banks like Mercury or Novo have no monthly fees and no minimum balance. For businesses that need cash deposits, a local credit union or traditional bank is better. Gather the documents — see the table below. Open the account in the legal business name, not your personal name. The name on the account must match the name on the EIN. Order a business debit card and checks. Use these for every business transaction. Never use your personal card. Set up a separate business email address for the bank correspondence. Do not use your personal email.

Documents most banks ask for

Document	Where to Get It
Articles of Organization / Incorporation (stamped)	Secretary of State
EIN confirmation letter	IRS (from Step 3)
Operating Agreement / Bylaws	You drafted this in Step 2
Government-issued photo ID	Driver’s license or passport
Proof of business address	Lease, utility bill, or home address statement
Business license (if applicable)	City or county
Initial deposit	Varies — some banks require $25–$100

Why This Matters

Commingling personal and business funds is the fastest way to lose your liability protection. If a court cannot tell where the business ends and you begin, it can hold you personally responsible for the business’s debts. A separate business account is not optional.

Common Mistakes

Opening the account in a personal name instead of the entity name
Using the account for personal expenses — this destroys the liability shield
Choosing a bank that requires a minimum balance you cannot maintain
Forgetting to update the bank when the entity type changes

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Opens your browser’s print dialog — choose “Save as PDF” as the destination. Only the personalized checklist prints.

Set Up Business

Add your business name in Step 1

Deadline countdown

What to do

Structure comparison

What to do

What to do

What to do

Documents most banks ask for

Summary Checklist