Turn Your Idea Into a Business
Follow 10 practical steps—from shaping your idea to promoting your business.
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Business resources to help you move forward
Skillose is privately owned and is not affiliated with the IRS, SBA, or any government agency. Educational information only. Not legal, tax, or financial advice.
Choose and Register Your Business Structure
Compare common structures and prepare to register through your state.
Open guide →Get Your EIN Free from the IRS
Learn what to prepare and apply directly through the official IRS website.
Open guide →Understand Your D-U-N-S Number
Learn what it identifies, how to request it free, and when a federal UEI is used instead.
Open guide →Build Business Credit Responsibly
Build a strong financial history while borrowing carefully and protecting your personal credit.
Open guide →SKILLOSE STARTUP GUIDE
10 Things to Do When Starting a Business
Every successful business starts with an idea. But turning that idea into a real business takes planning, research, and action. Here are 10 steps to help you get started.
Start With What You Love
Take a deep dive into your creativity and your heart. What do you love to do? What are you good at? What have you created, learned, or experienced that is so valuable you want to share it with others?
A great business often begins with something you believe in.
Make Sure It Solves a Need
Ask yourself: Why is my idea valuable to other people?
A successful business usually provides a product or service that people want, need, or that helps solve a problem. Your passion starts the idea—your customers help turn it into a business.
Do Your Research
Research the product or service you want to sell. Learn about your potential customers, competitors, industry, and market.
Find out what others are offering and determine what could make your business different or better.
Know Your Costs & Set Your Price
Do your homework before deciding what to charge.
Calculate the cost of your products, materials, labor, shipping, overhead, taxes, and other expenses. Then research the market and develop pricing that gives your business an opportunity to make a profit.
Create a Business Budget
Determine how much money—your startup capital—you will need to open and operate your business.
Consider startup expenses, equipment, inventory, insurance, licenses, marketing, rent, utilities, payroll, technology, and emergency funds.
Know your numbers before you spend your money.
Build Your Brand
Now it's time to give your business an identity.
Choose a company name, design your logo, select your colors, and think about the message you want your brand to communicate.
Your brand should help people recognize and remember your business.
Choose & Register Your Business Structure
Before registering your business, research whether the company name is available in your state and online.
Then determine the appropriate business structure for you, such as a sole proprietorship, LLC, partnership, or corporation.
Business structures can have different legal and tax consequences. If you're unsure which is right for you, consider speaking with a qualified CPA, attorney, or business professional.
Get Your EIN
Once you've established your business structure, determine whether your business needs an Employer Identification Number (EIN) from the IRS.
An EIN is used for federal tax purposes and is commonly needed for business banking and other business activities.
Open a Business Bank Account
Keep your business finances organized and separate from your personal finances by opening a dedicated business bank account when appropriate for your business structure.
Even if you're not ready to fully launch, start building good financial habits from the beginning.
Think of your business like a baby—it needs attention, resources, and time to grow.
Start Promoting Your Business
Don't wait for customers to magically find you. Tell people you're in business!
Create your website, establish your social media presence, network in your community, talk to potential customers, and begin building relationships.
Start small, learn from your customers, improve your product or service, and keep moving forward.
Your Idea Is Only the Beginning.
You don't have to know everything before you start. Research it. Plan it. Build it. Brand it. Share it.
Every business begins somewhere. Yours can begin today.
BUSINESS FOUNDATION GUIDE
Choose and Register Your Business Structure
Before you register your business, take some time to decide how you want your business to be legally structured.
Your choice can affect your taxes, personal liability, paperwork, ownership, and how your business operates.
1 Understand the Common Business Structures
Sole Proprietorship
A sole proprietorship is generally the simplest structure for one person starting a business.
You and the business are not separate legal entities. This means you generally have personal responsibility for the debts and obligations of the business.
May be suitable for: Someone starting a small or lower-risk business who wants a simple structure.
Partnership
A partnership generally involves two or more people doing business together.
Partners can contribute money, property, labor, or skills and share in the profits and losses of the business. There are different types of partnerships, so it's important to understand the responsibilities and potential liability of each partner.
May be suitable for: Two or more people starting and owning a business together.
Limited Liability Company—LLC
An LLC is created under state law and can provide its owners—called members—with protection from personal liability in many circumstances. An LLC can have one owner or multiple owners.
Important: LLC is a legal business structure, but it does not automatically tell you how the business will be taxed.
For federal tax purposes, depending on the number of owners and elections made, an LLC may be treated as a sole proprietorship, partnership, C corporation, or S corporation.
May be suitable for: Business owners who want liability protection while maintaining flexibility in how the business is managed and taxed.
C Corporation
A corporation is a legal entity separate from its owners.
Corporations generally provide strong liability protection, but they also have more formal recordkeeping, reporting, and operational requirements. A corporation may also raise capital by issuing stock.
May be suitable for: Businesses planning significant growth, bringing in investors, issuing stock, or eventually being sold.
S Corporation
An S corporation is generally a federal tax election—not simply another type of company you register with your state.
An eligible corporation or other qualifying entity can elect S corporation tax treatment with the IRS.
There are specific eligibility, ownership, filing, and tax requirements, so consider speaking with a CPA or qualified tax professional before making this election.
2 Ask Yourself the Right Questions
Before selecting a structure, consider:
- Will I own the business by myself or with partners?
- How much personal liability protection do I need?
- How will the business be taxed?
- Will I have employees?
- Will I eventually bring in investors?
- Do I want to raise money by selling ownership?
- What records and annual filings will I be required to maintain?
- What will it cost to create and maintain this structure?
Don't choose an LLC or corporation simply because someone told you that's what every business needs. Choose the structure that makes sense for your business.
3 Check Your Business Name
Once you have an idea for your company name, check whether it is available in the state where you plan to register.
You should also research the name online and consider whether there may be trademark issues before investing heavily in your logo, signs, website, or marketing.
Searching a state business-name database does not necessarily mean you have cleared the name for trademark purposes.
4 Register With Your State When Required
The registration process varies by state and business structure. Depending on your structure, you may need to file documents such as:
- LLC: Articles of Organization
- Corporation: Articles of Incorporation
- Limited Partnership: Certificate of Limited Partnership
You may also need to designate a registered agent to receive official and legal documents for the business.
Use your state's official government website whenever possible.
5 Create Your Internal Business Documents
Registration is only part of establishing your company. Depending on your business structure, you may also want or need documents such as:
- LLC Operating Agreement
- Partnership Agreement
- Corporate Bylaws
- Initial Resolutions
- Ownership records
These documents can establish who owns the company, how decisions are made, each owner's responsibilities, and what happens when ownership changes.
6 Keep Your Formation Documents
Once your business is approved, keep copies of your state formation documents and other important records in a safe place. You may need them when you:
- Apply for an EIN
- Open a business bank account
- Apply for financing
- Obtain licenses and permits
- Purchase business insurance
- Enter into contracts
- Verify ownership of the business
7 Then Move to Your Next Step
Once your business structure has been properly established, you're ready to continue building your company.
Next Step → Get Your EIN Free from the IRSBuild the Foundation Correctly.
Your business structure is the foundation of your company. Build the foundation correctly before you build on top of it.
If you're uncertain about which structure is right for your situation, consider speaking with a qualified CPA, attorney, or business advisor before filing.
Helpful official resources:SBA: Choose and register your business ↗IRS: Business structures ↗USPTO: Search trademarks ↗
This information is provided for general educational purposes and is not legal or tax advice. Requirements vary by state and individual business circumstances.
OFFICIAL IRS RESOURCE
Get Your EIN Free from the IRS
An Employer Identification Number (EIN) is a nine-digit federal tax identification number issued by the Internal Revenue Service (IRS). Businesses commonly use an EIN for tax purposes, opening business bank accounts, applying for licenses, hiring employees, and other business activities.
✓
The Good News—It's FREE!
You do not have to pay a company to obtain an EIN. The IRS provides EINs directly to eligible businesses free of charge.
Before You Apply
If you're creating an LLC, partnership, corporation, or other legal entity, generally complete your state business registration first.
Have the following information ready:
- Your legal business name
- Your business structure, such as LLC, corporation, partnership, or sole proprietorship
- Your business address
- The name of the person responsible for the business
- The responsible party's Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), when required
- A general description of what your business does
How to Apply
- Go directly to the official IRS EIN application.
- Select the option to apply for an Employer Identification Number.
- Follow the IRS questions and enter your business information carefully.
- Review your information before submitting your application.
- Once approved, the IRS can issue your EIN immediately through the online application.
Important: Save Your Confirmation
At the end of the process, save or print your EIN confirmation information and keep it with your important business records.
You may need your EIN when opening a business bank account, filing taxes, applying for certain licenses, establishing business accounts, or completing other business documents.
⚠ Watch Out for EIN Fees
There are private websites and companies that charge people to apply for an EIN on their behalf.
You do not have to pay for an EIN.
For eligible applicants, you can apply directly through the official IRS website for FREE.
OFFICIAL GOVERNMENT RESOURCEIRS—Employer Identification Number (EIN)
Visit IRS.gov ↗This information is provided for educational purposes and is not tax or legal advice. Business and tax situations vary. Consult a qualified tax or legal professional when necessary.
BUSINESS IDENTIFICATION GUIDE
Understand Your D-U-N-S Number
As you establish your business, you may hear about something called a D-U-N-S Number.
D-U-N-S stands for Data Universal Numbering System. It is a unique nine-digit business identification number issued by Dun & Bradstreet (D&B). Think of it as one way businesses can be identified within the commercial business world.
EIN
Issued by the IRS and used as a federal tax identification number.
D-U-N-S Number
Issued by Dun & Bradstreet and used to identify a business within D&B's commercial database.
A D-U-N-S Number is FREE.
You do not have to purchase a credit-building package or another D&B product simply to receive one. Paid expedited processing and other optional services may be offered, but they are not required.
Your D-U-N-S Number Is Not Your EIN
These two numbers serve different purposes, and your business may have both.
Check Before Applying
Your business may already have a D-U-N-S Number. Before requesting a new number, use D&B's lookup service to search for your company and avoid unnecessary duplicate records.
Use the official D&B lookup ↗Have Your Business Information Ready
You may be asked for:
- Legal business name and address
- Business telephone number
- Owner, president, or CEO
- Legal business structure
- Year the business was established
- Primary type of business or industry
- Number of employees
Make sure your information is accurate and consistent with your other official business records.
Why Can It Be Important?
Organizations may use D&B information when evaluating suppliers, reviewing a business credit profile, verifying a company, onboarding vendors, considering business relationships, or evaluating certain credit opportunities.
A D-U-N-S Number does not guarantee financing or strong business credit.
Your Business Credit Still Has to Be Built
Getting a D-U-N-S Number is not the same as getting a good business credit score. A credit profile can develop as creditors, suppliers, and other organizations report information about your business.
Pay on time. Keep your information accurate. Don't overborrow. Monitor your business credit.
Keep Your Information Consistent
Try to use the same legal business information across your state registration, EIN records, bank account, licenses, business address, telephone number, and D&B profile.
Consistency can make it easier for organizations to verify your business.
Monitor Your Business Information
Periodically review the information associated with your company. If your address or company information changes—or something is incorrect—determine whether your D&B business profile needs to be updated.
D-U-N-S Is No Longer Required for Federal Contracting
The U.S. federal government replaced the D-U-N-S Number with the Unique Entity Identifier (UEI) for entities doing business with the federal government. A UEI is obtained through SAM.gov.
Do not tell a new business owner that a D-U-N-S Number is required simply to pursue U.S. federal contracts.
Learn about entity registration at SAM.gov ↗Build the Business—Not Just the Number
A D-U-N-S Number can be useful, but the number itself doesn't create a successful business. Develop good financial habits, keep accurate records, pay obligations responsibly, create customer relationships, and establish a positive business reputation.
Your Number Identifies You. Your Practices Build Your Reputation.
Your D-U-N-S Number identifies your business. Your business practices build its reputation.
OFFICIAL DUN & BRADSTREET RESOURCERequest a D-U-N-S Number
Visit D&B ↗This information is provided for general educational purposes. Credit, lending, contracting, and registration requirements vary.
RESPONSIBLE CREDIT GUIDE
Build Business Credit Responsibly
Building business credit can help your company establish its own financial history and may improve its ability to qualify for financing, vendor terms, equipment, and other business opportunities.
Business credit is not free money.Borrow only what your business can reasonably afford to repay.
Establish Your Business
Start by properly establishing and registering your business according to the requirements of your state.
Depending on your situation, your business may operate as an LLC, corporation, partnership, sole proprietorship, or another business structure.
Get Your EIN
An Employer Identification Number (EIN) is your business's federal tax identification number.
You can obtain an EIN FREE directly from the IRS when eligible.
Never pay simply because a website makes it appear that you must pay to receive an EIN.
Open a Business Bank Account
Keep your business money separate from your personal money.
Use your business account for business income and expenses. Maintaining organized business finances can also make bookkeeping, taxes, and financial planning much easier.
Establish Credit in Your Business Name
As your business grows, consider establishing appropriate accounts in the company's name.
These might include legitimate supplier or vendor accounts, business services, or a business credit card.
Before opening an account specifically to build credit, find out whether the creditor reports payment history to one or more business credit bureaus.
Pay Your Bills on Time
One of the most important habits in building credit is simple:
Pay what you owe—and pay it on time.
Your company's payment history can affect how lenders, suppliers, and other businesses evaluate your company.
Don't Borrow Just to Build Credit
Having access to $10,000 doesn't mean your business should spend $10,000.
Borrow for a legitimate business purpose and have a plan for repayment.
Avoid opening unnecessary accounts simply because someone promises that doing so will quickly produce a high business credit score.
Keep Business and Personal Finances Separate
Whenever possible and appropriate for your business structure, keep business purchases, banking, and financial records separate from personal expenses.
This creates cleaner financial records and helps you understand how your business is actually performing.
Monitor Your Business Credit
Businesses can have credit reports maintained by commercial credit-reporting companies.
Review your business information periodically and make sure your company's name, address, payment information, and other records are accurate.
Major business credit reporting companies include:
Dun & Bradstreet • Experian Business • Equifax Business
Different credit bureaus and lenders may use different scoring systems and information.
Protect Your Personal Credit Too
Don't assume that every account labeled “business credit” is completely separate from you personally.
Some lenders and business credit-card issuers may review your personal credit or require a personal guarantee, especially when your business is new.
Read the terms before applying.
Build Slowly. Build Smart.
Strong business credit doesn't need to happen overnight.
Create a real business. Generate revenue. Maintain accurate records. Pay your obligations responsibly. Monitor your credit. And allow your company's financial reputation to grow along with the business.
Build a Reputation for Responsibility.
Good business credit isn't just about how much you can borrow—it's about showing that your business can responsibly manage what it owes.
Helpful official resources:SBA: Separate business and personal finances ↗CFPB: Credit and personal-guarantee rules ↗
Educational information only. Credit requirements and reporting practices vary by lender, creditor, business structure, and credit bureau.