A no-assumptions, step-by-step checklist covering every decision from name search to compliance — with both DIY and professional paths shown.
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A no-assumptions, step-by-step checklist for forming your entity, securing your identity, and staying compliant — every decision explained, both DIY and professional paths shown.
Your business name must be legally "distinguishable" from all existing entities registered in your state. If someone already has your name, you cannot use it — even if you've been operating informally. Check this before buying a domain, printing cards, or building a logo.
Note: a state-level name registration does not protect your name nationally. That requires a federal trademark (see Step 15). But state availability is the minimum required to form your entity.
Select your state below to go directly to the official search page. All searches are free.
Your name must include a designator like LLC, L.L.C., Inc., Corp., or Co. Names are compared without regard to punctuation or common words — "The Blue Door LLC" and "Blue Door Inc" may conflict. When in doubt, pick a distinctive name.
Registering your LLC in your state does not stop a business in another state from using the same name. A federal trademark gives you exclusive nationwide rights. If someone already holds a trademark similar to your chosen name, you risk a cease-and-desist letter even after building your brand. Search now, before investing anything.
Go to uspto.gov/trademarks/search and search your exact name AND phonetically similar names. A conflict doesn't need to be identical — it must only be "confusingly similar" in the same industry class.
Your state may approve your LLC name even if the .com domain and every social handle are already taken. Once you file, you're legally committed to that name. A 5-minute search here can save you a painful rebrand later.
Confirm availability across: .com domain, Instagram, Facebook, X/Twitter, LinkedIn, TikTok, and YouTube — before filing a single document.
The moment you confirm a name is free, create placeholder accounts on every platform — even ones you won't actively use for months. Handles are first-come-first-served and brand squatters operate fast. If your exact name is unavailable, pick a consistent variation (@GetBrandName, @BrandNameHQ) and use it everywhere.
| Structure | Liability | Tax Treatment | Best For |
|---|---|---|---|
| Sole Proprietorship | None | Schedule C, all profit taxed + SE | Testing an idea |
| LLC (default) | Yes | Pass-through; all profit subject to SE tax (15.3%) | Most new businesses ★ |
| LLC + S-Corp Election | Yes | Salary + distributions; SE tax only on salary | SMBs netting $50K+/yr ★★ |
| C-Corporation | Yes | 21% corporate tax + dividend tax | VC-funded startups |
| S-Corporation (pure) | Yes | Pass-through; must run payroll for owners | Corporate structure without C-Corp tax |
Form an LLC for legal structure (simple, flexible, strong liability protection). Then elect S-Corp tax treatment via IRS Form 2553 once your net profit consistently exceeds ~$50,000/year.
⏰ Critical deadline: IRS Form 2553 must be filed within 75 days of forming your LLC to take effect the same tax year. See Step 9.
C-Corps are taxed twice. This structure is designed for institutional investors or IPO-track companies. For a local or regional SMB, it creates unnecessary tax complexity and cost.
| State | One-Time Fee | Annual Fee | Best For |
|---|---|---|---|
| Your Home State ★ | $50–$300 | $25–$300 | Any business physically operating locally |
| Delaware | $90 | ~$350 franchise tax | VC-backed startups, C-Corps |
| Wyoming | $100 | ~$60 | Privacy-focused LLCs, no state income tax |
| Nevada | $75 | ~$350 | Asset protection, no corporate income tax |
If you physically operate in your home state, forming elsewhere just adds complexity. You'd still need to register as a "foreign entity" in your home state anyway — paying fees in both states. Save the hassle and the money.
A registered agent is a person or company with a physical address in your state who agrees to receive official legal and government correspondence on behalf of your business — lawsuits, IRS notices, state compliance documents. Every LLC and corporation is required by law to have one.
You can list yourself as registered agent using your home or office address. Cost: $0. Downside: your personal address becomes part of the public record, and you must be available during business hours to receive documents.
Northwest keeps your personal address off the public record, scans and emails all legal documents, maintains a compliance dashboard, and sends deadline reminders. Best registered agent service for SMBs — straightforward pricing, no upsells.
Cost: $0 for template. For multi-member LLCs, strongly consider an attorney review ($300–$800 one-time).
Northwest provides a customized Operating Agreement as part of their formation package — at no additional cost. Saves you $0–$800 depending on whether you'd otherwise hire an attorney.
Set calendar reminders for both the day you file. Missing either window can cost you significantly.
Go directly to your state's Secretary of State website (use Step 1's dropdown). Most states have online filing. You'll need: your business name, registered agent info, business address, management structure, and a credit card for the filing fee.
Typical processing: 1–3 business days online; 1–3 weeks by mail.
Bundle includes: Articles filing, Registered Agent (free first year), Operating Agreement, and EIN assistance. Exceptional value for a first-time founder who wants everything handled correctly.
Indiana: $95 | Texas: $300 | Florida: $125 | California: $70 (+$800/yr min tax) | New York: $200 | Delaware: $90 | Wyoming: $100 | Most other states: $50–$150
California imposes a mandatory $800/year minimum franchise tax on all LLCs regardless of revenue. Budget for it from day one.
By default, a single-member LLC is taxed as a sole proprietor — all net profit is subject to self-employment tax (15.3%). Filing Form 2553 tells the IRS to treat your LLC as an S-Corporation for tax purposes only.
With S-Corp status, you split income into two buckets:
Form 2553 must be filed within 75 days of your LLC formation date to be effective for the current tax year. Set a calendar reminder the day you file your Articles. Missing this can cost you thousands in unnecessary SE taxes for an entire year.
Download IRS Form 2553 directly from irs.gov — it's free. Mail or fax to your IRS service center. Send via certified mail and keep the receipt — confirmation letter typically arrives 60–90 days later. Cost: $0
Northwest Registered Agent offers S-Corp election filing as an add-on. Your CPA can also prepare and file Form 2553 — typically $100–$200 as a standalone service. Given the tax savings at stake, having a professional handle this is worth the small fee.
Elect S-Corp status when your business consistently nets $50,000+ per year after expenses. Below that threshold, additional compliance costs may outweigh the SE tax savings. Consult a CPA to confirm the right timing.
The Corporate Transparency Act requires most U.S. LLCs and corporations to report their beneficial owners to FinCEN. Businesses formed in 2024 or later must file within 90 days of formation. Failure to file can result in civil penalties up to $591/day.
File free at boiefiling.fincen.gov. You'll need your EIN, LLC formation date, business address, and personal information for each beneficial owner. Takes approximately 15–20 minutes. Cost: $0
Northwest Registered Agent offers BOI report filing as an add-on service. Typical third-party fee: $25–$75. Given the steep daily penalty for non-filing, worth the small cost.
BOI reporting has been subject to legal challenges. Always verify the current filing status at fincen.gov/boi before filing — requirements may have been updated.
An EIN is your business's 9-digit federal tax ID — essentially its Social Security Number. You need it to open a business bank account, hire employees, file taxes, apply for business credit, and sign up for payment processing (Stripe, Square, PayPal Business).
Apply at IRS.gov EIN Application. Takes 10 minutes. You receive your EIN immediately. Available Monday–Friday 7am–10pm ET. Cost: $0 — always free directly from the IRS.
Northwest includes EIN application assistance in their formation bundle. Never pay a standalone service just for an EIN — they're just filling out the same free IRS form.
If you mix personal and business finances — known as "commingling" — a court can pierce the corporate veil, making your personal savings, home, and assets fair game in any lawsuit against your business. This is the single most common mistake that destroys LLC protection.
Do not accept a single dollar of business revenue into your personal account.
Recommended: Mercury (online, free, startup-friendly), Relay Financial (great for expense management), Chase Business Complete, your local credit union.
Sending proposals, invoices, and contracts from @gmail.com signals an informal, unestablished operation. A professional domain email costs less than $2/month and eliminates this credibility gap instantly.
If you miss your state's annual report, your LLC can be administratively dissolved — meaning it loses its legal protections and good standing. Reinstating a dissolved LLC involves fees, back filings, and sometimes waiting periods. Set calendar reminders for all annual deadlines.
Northwest Registered Agent's dashboard tracks all your compliance deadlines and sends email reminders. If you're self-managing, create a recurring annual calendar event for each obligation.
A federal trademark registration gives you the exclusive right to use your name, logo, or slogan in commerce nationwide in your registered category. Without it, your rights are limited to the geographic area where you actually operate. Registration also lets you use the ® symbol, creates a public record of ownership, and gives you the right to sue for infringement in federal court.
File at uspto.gov/trademarks/apply. Use TEAS Plus ($250/class) or TEAS Standard ($350/class). Processing takes 8–14 months. Your priority date is established the day you file.
Copyright arises automatically the moment you create an original work — website copy, logo, photography, software, written content, videos. You don't need to register to own it.
However, registration matters for enforcement:
Register at copyright.gov/registration. Single work: $45. Group of published photos: $65. Processing time: 3–11 months for online registration.
For comprehensive IP strategy — especially if you have proprietary software, multiple works, or creative assets core to your business — consult an IP attorney. They can bundle multiple registrations and structure your IP ownership properly from the start.
If you hire a freelancer to create content, design a logo, or write software, copyright belongs to them by default — not you — unless you have a written work-for-hire agreement or copyright assignment clause in your contract. Always include this language in any contract with creative contractors.