Starting a business in the U.S. is an exciting opportunity to bring your ideas to life, establish a brand, and build something of value in the market. Whether you’re launching a small startup or growing an established concept, understanding best practices and taking the right initial steps will help set you up for success. This checklist covers essential steps and helpful recommendations to guide your setup, from legal requirements to strategic considerations that can protect and grow your business.

Remember, each business is unique, with its own set of challenges and opportunities. To ensure you’re fully prepared, we strongly recommend consulting a professional to discuss your specific circumstances before you begin. Taking the time to tailor your approach can make a significant difference in building a strong foundation for your venture.

Don’t forget to check any compliance tasks you MUST do as well.

You SHOULD arrange business insurance

There are several types of insurance to consider.

• General liability and property insurance to cover day-to-day risks like customer accidents, equipment damage, or theft.
• Business interruption insurance in case an event like a fire or cyberattack halts operations.
• Professional liability (E&O) for service-based businesses to cover errors or missed deadlines.
• Workers’ comp and health benefits if you’re hiring employees early.
• Cyber liability coverage if you store customer data, process payments, or use cloud-based platforms.

Talk to an insurance broker about would best suit your new business.
 

You SHOULD protect your intellectual property (IP)

Identify any intellectual property, like your business name, logo, or slogan, and consider steps to protect it. IP could include trademarks, patents, especially if you have a unique product or process, and copyright on original content. Acting before you launch can help avoid issues down the road.

Visit the US Patent and Trademark Office website for more information or consult an IP attorney for specialized advice.
 

You SHOULD secure your Intellectual assets

These could be client lists, processes, and trade secrets, which typically aren't protected by law but are still valuable.

• Have new hires and contractors sign confidentiality or non-disclosure agreements (NDAs).
• Limit access to sensitive documents using permission-based file systems.
• Document policies around data security and information sharing.

This is especially important for service businesses or early-stage tech firms that rely on proprietary methods or client relationships.
 

You SHOULD register your business with the state

Each state has unique requirements, but most require business registration. This step grants you legal recognition, often providing tax benefits and credibility.

Visit your state’s government website or consult with a business advisor.
 

You SHOULD form an LLC or Corporation

These offer several benefits, including limited liability protection and improved credibility. Although there are fees and paperwork involved, these structures can protect you if the business faces financial or legal issues.

Consult with a legal professional or accountant to determine which structure best fits your needs, and read more about LLCs and Corporations on the SBA website.
 

You SHOULD hire an accountant or bookkeeper

You can handle your own taxes, but for a new business, an accountant or bookkeeper will make sure everything is in order, and they'll provide valuable financial advice. A professional can:

• Set up your chart of accounts
• Help you choose the right accounting method (cash vs accrual)
• Identify early deductions, R&D tax credits, or cost-saving opportunities
• Prepare clean financials for banks or investors

Search for certified accountants or bookkeepers in your area or ask for recommendations from other business owners.
 

You SHOULD forecast cash flow

A cash flow forecast helps you plan for incoming and outgoing funds, which is critical for financial stability. It allows you to assess anticipated revenue versus expenses to project profitability.
Steps to take:

• Build a 12-month rolling forecast that includes revenue, expenses, and upcoming large purchases.
• Use accounting software like Xero, QuickBooks Online, or FreshBooks to automate forecasting and alerts.
• Review your receivables, payables, and inventory turnover monthly

You SHOULD identify your cash cycle

Understanding your cash cycle, which is the time it takes to turn inventory or services into paid sales, is essential. This will vary by business, with retailers typically receiving funds immediately and service-based businesses experiencing longer payment cycles.
 

You SHOULD explore local and federal grants

In the US, various grants and incentives are available to small businesses, especially for minority-owned, women-owned, and veteran-owned businesses. Check with your local Small Business Development Center or visit the SBA website for resources and information funding programs.
 

You SHOULD develop a business plan

This outlines your goals, target audience, financial projections, and growth strategies. It’s a valuable tool for staying focused and appealing to investors or lenders.
 

You SHOULD establish a digital presence

A professional website and social media presence are vital for reaching customers in today’s market. Using platforms like Squarespace, Wix, or WordPress can simplify website setup, and social media sites like Facebook, LinkedIn, and Instagram can help you engage your audience.
 

You SHOULD secure a unique email domain

A business email using your domain name, such as [email protected], looks more professional and builds brand recognition. Setting up multiple accounts like support@ or sales@ can also streamline customer inquiries.
 

You SHOULD conduct market research

Before launching, conduct thorough research to confirm there’s a demand for your product or service. Gather insights through surveys, focus groups, and competitor analysis to understand your target market. Google Trends and keyword research can help you understand demand, and use industry reports or competitor reviews to gauge pricing, positioning, and gaps.

Next steps:

• Build a customized “SHOULD DO” checklist that reflects your funding, staffing, and growth plans.
• Meet with advisors (legal, tax, marketing) to pressure-test your decisions before launch.
• Set up your digital and operational infrastructure such as email domains, accounting software, payroll systems, and marketing tools.
• Establish a financial runway and milestone-based plan to track progress and adapt as you scale.
• Build relationships early with bankers, vendors, mentors, and other business owners in your space. Join relevant industry associations, seeking mentors, and connecting with local business development centers.
• Use the Colorado State e-learning tool to get started.

Keep referring to your checklist of what you SHOULD do, and you’ll be well-equipped to build your business successfully and stay organized for long-term growth.