HOW TO SET UP A BUSINESS IN 5 SIMPLE STEPS
I get this question almost every single day: "Josh, how do I actually set up a business?"
Whether it's a friend, a customer, someone in my Inner Circle, or a complete stranger on social media — everyone wants to know the exact steps. So here they are. No fluff. No upsells. Just the five things you need to do to get your business off the ground legally and financially.
TABLE OF CONTENTS
CREATE AN LLC
An LLC (Limited Liability Company) is the simplest and most protective structure for a new business. It separates your personal assets from your business, which means if anything goes sideways, your personal bank account, house, and car are protected.
You can form an LLC through your state's Secretary of State website, but honestly, the easiest route is using an online service like Tailor Brands or a similar LLC formation service. They handle the paperwork, registered agent, and filing for you.
PRO TIP
When you use a service like Tailor Brands, do not buy any upsells. They'll try to sell you website builders, logo packages, domain names, and other add-ons. Just get the basic LLC formation. Everything else you can handle separately and usually cheaper.
What you'll need:
- Your business name
- A business address (can be your home or a registered agent)
- The state you want to register in
- Your personal information (SSN for the filing)
The whole process takes about 10-15 minutes online and your LLC is typically approved within a few business days, depending on the state.
GET A TAX ID NUMBER (EIN)
Once your LLC is formed, you need an EIN (Employer Identification Number). Think of it as your business's Social Security number. You need it to open a bank account, file taxes, and hire employees.
The best part? It's completely free. Go directly to the IRS website and apply online. It takes about 5 minutes and you get your EIN instantly.
APPLY FOR YOUR EIN ON IRS.GOVWARNING
Do not pay a third-party service to get your EIN. There are websites that charge $50-$150 for something the IRS gives you for free. Always go directly to IRS.gov.
GET A BUSINESS BANK ACCOUNT
Never mix personal and business money. This is one of the biggest mistakes new business owners make. You need a dedicated business bank account from day one.
I recommend Novo — it's an online bank built specifically for small businesses. No minimum balance, no hidden fees, and it integrates directly with tools like QuickBooks and Stripe. You can sign up and be approved in minutes, all online.
Why Novo stands out:
- Free business checking — no monthly fees
- Built for online businesses and entrepreneurs
- Integrates with QuickBooks, Stripe, Shopify, and more
- 100% online — no branch visits required
PRO TIP
To open your business bank account you'll need your LLC documents, your EIN confirmation letter from the IRS, and a valid photo ID. Have these ready before you start the application.
SET UP QUICKBOOKS
QuickBooks Online is the industry standard for small business accounting. It tracks your income, expenses, invoices, and makes tax time significantly easier. Set it up now — not when tax season hits and you're scrambling.
Connect your Novo bank account to QuickBooks so transactions sync automatically. This eliminates manual data entry and gives you a real-time view of your business finances.
Your QuickBooks setup checklist:
- Create your QuickBooks Online account
- Connect your Novo business bank account
- Set up your chart of accounts (income and expense categories)
- Create your first invoice template
HIRE A BOOKKEEPER
Here's the truth most people won't tell you: you should not be doing your own books. Your time is better spent generating revenue. A bookkeeper costs a fraction of what your time is worth, and they'll keep your finances clean and organized.
The easiest way to find an affordable, reliable bookkeeper is through Fiverr or Upwork . Look for someone with QuickBooks experience and strong reviews. You can find quality bookkeepers starting around $150-$300/month.
What to look for in a bookkeeper:
- QuickBooks Online certified or experienced
- Strong reviews from small business clients
- Monthly reconciliation included
- Clear communication and responsive
HOW IT WORKS
Once you hire a bookkeeper, give them accountant access to your QuickBooks account. This lets them manage your books without having access to your bank account directly. They'll categorize transactions, reconcile accounts monthly, and prepare your books for tax filing.
THAT'S IT. YOU'RE IN BUSINESS.
Five steps. That's all it takes to go from idea to legally operating business. Most people overcomplicate this. They spend months "planning" when they could be up and running in a week.
Once your foundation is set, the real work begins — building your marketing systems, generating leads, and scaling revenue. That's where I come in.
Need help taking your business to the next level? Check out LeadFuel CRM — the tool I use and recommend for managing leads and closing deals. Or book a free strategy call and let's talk about your growth.
READY TO SCALE?
Setting up your business is step one. Scaling it to 7 figures requires the right systems and strategy. Let's talk.