Business Checklist

Take your business to new heights by making sure your business is financially viable and has its legal house in order!

Use this checklist, created by Attorney Ana Juneja, as a starting point.

STEP 1: Business Plan

Step 1 should always be a well-thought-out and detailed business plan.

This should include information about what goods or services you are selling, profit margins, overhead costs, time investment, etc.

Your business plan will help you pinpoint any adjustments that need to be made to your business before any monetary investments.

Remember that creating a business plan is 100% free!

STEP 2: Formation

Step 2 is the formation of your business as a legal entity. It’s generally advisable to form an LLC or another type of corporation to limit liability and risk.

For most small businesses, especially online businesses, it’s fine to form your entity in the state that you live in.

At this point, you may also need to consider if you need a virtual address service or registered agent service.

These services cost a small fee, but they do offer some privacy benefits.

STEP 3: Operating Agreement

An operating agreement is the foundational document of your business.

This important document will outline how your business runs.

Some states require your operating agreement to be filed with the state, but even if your state does not – it’s still vital that you have one.

The best option (if you have the funds) is to invest in a custom-drafted document from an attorney.

It is strongly advisable to have an attorney draft your operating agreement if there is more than one person involved in the business.

If you do not have the funds to invest into a custom-drafted document and must create your own operating agreement, the following are things to consider:

• WHO owns the company based on the contributed money/property/time.
• WHAT should happen if a member passes away or wants to leave the company. 
• WHERE the company’s principal place of business is located.
• WHY only certain individual members can sign contracts on behalf of the company. 
• WHEN and HOW regularly member(s) meet to discuss company affairs.
• HOW the profits and losses of the company will be distributed among members.

STEP 4: EIN

You need an EIN to get a bank account for your business.

Did you know you can get your EIN for free from the IRS?

You can get your EIN letter from irs.gov and download the letter instantly as a PDF.

Be careful to go to the correct website as there are a lot of scams out there!

If you are working with an attorney to set up your business, you can request that they do this step for you (or help you with it) free of charge.

STEP 5: Bank Account

Most banks require you to bring your registration papers (Articles of Organization) and EIN letter from the IRS.

Depending on your bank, you may also be required to bring a copy of your operating agreement.

At this point, you should also consider if your business needs a credit card.

STEP 6: Business Tax Considerations

Once your business bank account is properly set up, you will want to make sure you are keeping accurate and updated records.

This is a good time to discuss any questions you may have about taxes or bookkeeping with a trusted CPA.

Depending on what/where you are selling (goods or services), you may be required to obtain a federal and/or state tax ID.

Make sure to research your business type in order to comply with all local, state, and federal regulations.

STEP 7: Business Permits & Licenses

Depending on your business, you may be required to obtain local, state, or federal permits and/or licenses.

Again, make sure to research your business type in order to comply with all local, state, and federal regulations.

This is very important, because the cost of obtaining these permits & licenses may be very small compared to the fines that can be imposed!

STEP 8: Business Insurance

Business insurance can help set you up for success in case a “worst-case scenario” happens unexpectedly.

As soon as you are generating revenue (or even before!), consider investing in at least a moderate coverage business insurance plan.

Keep in mind, some industries may REQUIRE business insurance.

STEP 9: Social Media Handles & Domains

You should ensure all desired social media handles and domains for your business name are available.

For social media handles, make sure to check each platform individually to ensure you will be able to get the name you want across everything – it’s ideal for the name to match exactly from an SEO perspective.

For domains, you can search available domains by using godaddy.com. Do not simply go to the website in your browser to search – use a reputable domains-for-sale website.

STEP 10: Intellectual Property

Ideally, you should ensure your business/brand name is available to be trademarked before you fall in love with the name.

Trademarking your name will help you build a strong brand and ensure that no one can rip off your brand!

You should also make sure to protect your other brand names, logos, and slogans with a trademark. This may be a product collection, course name, signature services, etc. 

You should budget long-term to protect all brand identifiers that are generating (or will generate) revenue for your business. You should work with an experienced IP (intellectual property) attorney to conduct a trademark availability search and to file a trademark application. 

Even when working with an attorney, you should search the trademark database (tmsearch.uspto.gov) to catch obvious trademarks PRIOR to paying the attorney to do a search. This can help catch the low-hanging fruit and leave the in-depth search to the attorney so you get the most value for your money.

In the US, most trademarks are filed electronically through the Trademark Electronic Application System (TEAS).

Additionally, at this point, you should have an attorney do an IP audit to map out what trademarks, copyrightable works of authorship, and patentable inventions/methods you have in your business + how to protect them.