How to Start a Business
The end-to-end walkthrough — validate, form, register, fund, hire, and grow. With links to every deep-dive guide.
Starting a business is nine concrete steps — validation, entity, state registration, EIN, banking, bookkeeping, hiring, website, first customers. Each one links to a full guide. You can do it in a week.
The nine steps
Validate the idea
Before any paperwork, prove the idea is worth pursuing. Talk to 10 potential customers. Sell something — even something hacky — before you build it.
- Identify the specific pain you solve and for whom
- Charge for it manually before automating
- Confirm at least 5 people pay for a result, not just feedback
Pick a structure
For most US founders, an LLC is the right starting point — simple, flexible, and protective. Choose a Corporation if you plan to raise venture capital or issue equity to employees.
- Sole proprietorship — no liability protection (avoid)
- LLC — liability shield, pass-through taxes, low overhead
- C-Corp — required for most VC investment, harder to maintain
- S-Corp election — a tax choice you can layer on later
Register with your state
File Articles of Organization (LLC) or Articles of Incorporation (Corp) with your secretary of state. Appoint a registered agent. Most states process online in 1–10 business days.
- Check name availability with your state
- Pick a registered agent (your home state or a service)
- File formation docs and pay state fee ($50–$500)
- Wait for state approval and certified filing
Get an EIN
Your federal tax ID. Free from the IRS in about 15 minutes online. Required to open a business bank account, hire employees, or file business taxes.
- Apply online at irs.gov (US-based responsible party)
- Save the SS-4 confirmation letter — banks ask for it
- Use the EIN for all federal tax filings going forward
Open business banking
Get a business checking account and credit card. Use them exclusively for business — never mix personal and business funds. This protects your liability shield.
- Bring EIN, formation docs, operating agreement, ID
- Apply for a business credit card alongside
- Move any business-related autopays to the business card
Set up bookkeeping + taxes
From day one, every transaction should be categorized. Set aside ~25–30% of profit for taxes. Schedule quarterly estimated payments. This is what April-15 surprises are made of.
- Pick a bookkeeping platform (or use Pixelbase)
- Plan to pay quarterly estimates (April, June, Sep, Jan)
- Decide on cash vs accrual accounting basis
- Save 25–30% of profit in a separate tax savings account
Hire or contract help
When you can't do it all yourself, classify each worker correctly — 1099 contractor for project work, W-2 employee for ongoing hours and direction. Misclassification is the costliest mistake new businesses make.
- Decide W-2 vs 1099 BEFORE you start paying anyone
- Register for state payroll tax + unemployment if W-2
- Get workers' comp insurance (required in 49 states)
- Collect W-4 + I-9 (employees) or W-9 (contractors)
Build a website
Even one-page sites compound. Pick a template, write tight copy, connect a domain, ship today. Iterate based on what actual visitors do.
- Pick a template matching your business type
- Write one clear value prop above the fold
- Add one strong CTA (book, buy, contact)
- Connect a custom domain for credibility
Get your first 10 customers
Manual outreach beats marketing automation at the start. DM 50 people who fit your customer profile. Send tailored, specific value. Track what works and double down.
- List 50 prospects in your network or community
- Personal outreach (not templates) — ask for the meeting
- Iterate your pitch after every 10 conversations
- Set up Pixelbase invoicing so first deals close fast
Common mistakes new founders make
Forming an entity before validating the idea.
Sell something — even manually — before incorporating. Validation first protects you from spending hundreds of dollars on formation for an idea that doesn't land.
Picking a Corporation when an LLC would do.
Corporations have higher overhead, double taxation by default, and more paperwork. Unless you're raising VC, an LLC is almost always the right starting point.
Skipping the business bank account.
Mixing personal and business funds dissolves your liability shield. Open a separate account the same week you form the entity.
Calling all helpers "contractors" to avoid payroll.
Misclassification is one of the most expensive mistakes a small business can make. The IRS, DOL, and state agencies all penalize it.
Building features instead of getting customers.
For the first 6 months, every hour spent on product features that doesn't have a paying customer asking for it is wasted. Sell, then build.
Do steps 2–9 in one place.
Pixelbase forms your entity in any state, gets your EIN, opens business banking, sets up bookkeeping, runs payroll, files your taxes, and ships your website — all from one console. The only thing you have to bring is the idea.