How to Start a Business in 10 Simple Steps

You’ve got the idea. Maybe even the name. You can picture the website, the customers, maybe even your first sale. But how do you actually start a business? What do you need to do first, and what can wait?

Turning your idea into a real business might sound overwhelming, but it’s more attainable than you think, especially when you break it down into steps. Whether you’re opening a local retail store, building an online brand, or creating the next big app, this guide breaks down the essential steps to move from idea to launch. These 10 steps will help you get your business off the ground legally, strategically, and with long-term financial growth in mind.

Step 1: Define Your Business Idea

Every great business begins with a clear understanding of what it offers and why it matters. This is your value proposition—the unique benefit your product or service delivers to a specific audience. Start by identifying:

• What problem will your product or service solve?
• Who is the product or service for?
• What sets your business apart from existing options?

Start sketching out your business vision in writing. A strong value proposition will help you stay focused, guide your decisions, inform your marketing, and help customers understand why they should choose you.

Bottom line: A clearly defined value proposition lays the foundation for everything that follows—branding, pricing, outreach, and growth.

Step 2: Do Market Research

Every successful business is grounded in real need and supported by data that confirms it. Market research helps validate your idea and ensures you’re building something people want. Start by exploring:

• Who are your competitors?
• What does your ideal customer want, need, or struggle with?
• What are people willing to pay for your product or service?

Look at competitors, trends, and customer feedback. Use free tools like Google Trends or talk to people in your target audience. Even informal conversations can uncover insights that shape your offerings and strategy.

Understanding your market also includes knowing what legal risks may exist in your industry. Legal support at this stage can help you assess things like intellectual property conflicts, contract expectations, advertising rules, or whether your business model raises legal red flags.

Bottom line: Strong market research helps you make informed decisions, minimize risk, and build a business that’s both viable and protected from the start.

Step 3: Choose a Business Structure

The legal structure you choose impacts everything from taxes and liability to ownership, operations, and how easily your business can grow. Common options include:

• Sole Proprietorship – Simplest setup, but no liability protection
• LLC (Limited Liability Company) – Flexible and shields personal assets
• Corporation – Best for raising capital and scaling, but more formal and complex

Each structure comes with trade-offs in terms of cost, paperwork, liability, and tax treatment. Selecting the right one depends on your business goals, risk tolerance, funding needs, and whether you’ll be working solo or with partners.

An attorney can help you compare your options based on your specific circumstances—not just what’s easiest to set up. Legal guidance at this stage ensures you’re choosing a structure that protects your assets, supports your growth plans, and complies with state and federal requirements. It’s also the right time to talk through ownership, equity splits, and future exit plans before misunderstandings arise.

Bottom line: The right legal structure sets the foundation for long-term protection, flexibility, and growth.

Step 4: Select and Register Your Business Name

Your business name is more than just a label—it is your brand. It’s the identity customers will associate with your products or services, but it also needs to be available for use. Before falling in love with a name, take time to:

• Check name availability in your state’s business database (WA Secretary of State)
• Search the USPTO trademark database to avoid conflicts
• Confirm domain name and social media handle availability

Tip: If your name or logo will be central to your brand, it’s worth considering state and federal trademark protection. An attorney can help determine if your name is protectable, assess potential conflicts, and guide you through the application process.

Once you’ve chosen a name that’s available and fits your brand, you’ll need to register your business with the state. How you register depends on your business structure and your state’s regulations. Registration makes your name official and helps prevent other businesses in your state from using the same one.

If you plan to use a different name than your legal business name, you may also need to register a “Doing Business As” (DBA). Learn how to register a DBA in Washington State.

Bottom line: A strong name gives your business identity—but proper clearance, registration, and protection make it an asset. Consider trademark risks early and register your name the right way to avoid problems down the line.

Step 5: Apply for an EIN (Employer Identification Number)

An EIN is a unique nine-digit number issued by the IRS. Think of it as a Social Security number for your business that helps identify your business for tax and banking purposes. You’ll need an EIN to:

• Open a business bank account
• Hire employees
• File federal taxes
• Apply for certain licenses or permits

Even if you’re a solo business owner with no employees, having an EIN keeps your personal Social Security number off business paperwork and helps you establish credibility.

Apply for free at the IRS EIN application page.

Bottom line: Getting an EIN is a quick but important step that separates your business identity from your personal one and sets you up for growth.

Step 6: Get the Licenses and Permits You Need

A number of businesses need some form of license or permit to operate legally, and the specific requirements depend on your industry, business activities, and location.

Start by checking whether you need:

• A general business license from your city or county
• A sales tax permit (if you sell taxable goods or services)
• Health, safety, or professional permits for specialized fields (e.g., food service, personal care, construction)

Visit the WA Department of Revenue’s business licensing wizard to get a personalized list of licenses based on your business activities.

Requirements can vary widely, even within the same state, so it’s important to review the rules for your city, county, and state. Don’t forget to check whether home-based businesses or online operations require special permits as well.

Bottom line: Licensing ensures your business is operating above board from day one, and helps you avoid fines, delays, or unexpected shutdowns.

Step 7: Set Up a Business Bank Account

Keeping your business and personal finances separate isn’t just smart—it’s essential. A dedicated business bank account helps you stay organized, maintain accurate records, and build financial credibility.

You’ll typically need:

• Your EIN
• Business formation documents (for LLCs or corporations)
• Your business license or DBA registration, if applicable

A business account allows you to:

• Track income and expenses clearly
• Accept customer payments more easily
• Simplify bookkeeping and tax preparation
• Maintain the integrity of your business structure

Bottom line: A separate business account makes it easier to manage your money, file taxes, and demonstrate that your business is real and professional.

Step 8: Create a Simple Business Plan

Once your business idea is defined, the next step is to map out how it will actually work. A business plan takes your vision and turns it into a clear strategy for execution, operations, and growth.

Your plan doesn’t need to be long or complicated, but it should cover the essentials:

• Your short- and long-term business goals
• A description of your products or services
• Your target market and marketing strategy
• Budget estimates and basic financial projections
• How you plan to launch, operate, and grow

Bottom line: A business plan is the bridge between your idea and real-world execution. It gives your business direction, keeps you accountable, and helps you make informed, strategic decisions as you grow.

Step 9: Set Up Your Accounting System

Once your business is active, you'll need a way to track how money flows in and out. Setting up an accounting or bookkeeping system early makes it easier to stay organized, monitor performance, and prepare for taxes.

You don’t need to be an accountant, but you do need a reliable method to record:

• Income and expenses
• Invoices and payments
• Receipts and deductible costs
• Any sales tax you collect (if applicable)

Options range from simple spreadsheets to software like QuickBooks, Xero, or Wave.

Bottom line: A clear financial system gives you visibility into your business health and saves time when it matters most—especially during tax season, funding conversations, or major growth decisions.

Step 10: Promote Your Business

Once your business is set up, it’s time to connect with customers. Marketing doesn’t have to be flashy or expensive—it just needs to be intentional and consistent.

Start with the basics:

• Create a simple website that aligns with your brand
• Set up your Google Business Profile
• Establish a social media presence where your customers spend time
• Network with others in your community or industry

Focus on delivering a clear message that highlights the value your business offers.

Bottom line: Marketing is how people find you, trust you, and choose you. Start small, stay consistent, and build on what works as your business grows.

Final Thoughts

Starting a business is a series of decisions that build on one another. Each step lays the groundwork for long-term success. No business starts with all the answers, but by taking the time to approach the process thoughtfully, you give yourself clarity, stability, and flexibility to adapt as you move forward.

Just remember—you don’t have to do it all alone. Speaking to a business attorney, accountant, or small business advisor early on can help you avoid costly missteps, clarify your obligations, and make informed decisions as you build.

If you're looking for legal guidance—whether it’s choosing the right structure, reviewing contracts, or protecting your brand—we’re here to support your next step. Reach us for a complimentary consult at (206) 429-5222 or schedule directly at https://nazzarolaw.com/schedule.

DISCLAIMER: The materials and information contained in this article are for informational purposes only. These materials do not constitute legal advice nor does engaging with this website create an attorney-client relationship. Accordingly, you should seek legal counsel from an attorney knowledgeable about the specifics of your situation before taking or refraining from action. Nazzaro PLLC has attorneys licensed in Washington, Texas, Washington D.C., California, and New York.