Formation feels overwhelming. Steps are unclear. Requirements vary by state. You don’t know where to start.
Most founders guess. They skip steps. They make mistakes. They waste time.
Formation has a clear roadmap. Same steps everywhere. State variations exist. The path is clear.
This roadmap shows the exact steps to legally start your business in any state.
Key Takeaways
- Follow roadmap—complete steps in order
- Understand state variations—know differences
- Complete required steps—don't skip anything
- File correctly—submit proper documents
- Maintain compliance—keep business legal
Table of Contents
Formation Overview
Formation follows a clear path. Same steps. Different details by state.
Core steps are universal: Planning. Name selection. Filing. Post-formation.
State variations exist: Fees differ. Forms differ. Timelines differ.
Why this matters: Understanding the roadmap enables success. If you follow the roadmap, success improves.
Step 1: Planning
Plan before you form. Choose structure. Gather information.
Choose Business Structure
Select your structure:
- LLC
- Corporation
- Partnership
- Sole proprietorship
Why this matters: Structure choice affects everything. If you choose structure, foundation exists.
Gather Required Information
Collect needed information:
- Business name
- Business address
- Owner information
- Business purpose
Why this matters: Information gathering enables filing. If you gather information, filing becomes possible.
Research State Requirements
Understand state requirements:
- Filing fees
- Required forms
- Processing times
- Annual requirements
Why this matters: State research prevents mistakes. If you research state, mistakes decrease.
Pro tip: Use our TAM Calculator to evaluate market opportunity and inform business formation decisions. Calculate market size to understand growth potential.
Step 2: Name Selection
Choose and reserve your business name. Follow state rules.
Name Availability Check
Check name availability:
- Search state database
- Check trademarks
- Verify availability
- Reserve if needed
Why this matters: Name check prevents conflicts. If you check name, conflicts decrease.
Name Requirements
Follow name requirements:
- State-specific rules
- Required words
- Prohibited words
- Format requirements
Why this matters: Requirement compliance enables approval. If you follow requirements, approval improves.
Name Reservation
Reserve name if needed:
- File reservation
- Pay fee
- Hold name
- Complete formation
Why this matters: Name reservation secures name. If you reserve name, name is secured.
Step 3: Filing
File formation documents. Submit to state. Pay fees.
Prepare Documents
Prepare required documents:
- Articles of organization
- Articles of incorporation
- Required forms
- Supporting documents
Why this matters: Document preparation enables filing. If you prepare documents, filing becomes possible.
Submit Filing
Submit to state:
- Complete forms
- Pay filing fees
- Submit documents
- Receive confirmation
Why this matters: Filing creates business. If you file correctly, business is created.
Processing Timeline
Understand processing:
- State processing times
- Expedited options
- Status tracking
- Approval notification
Why this matters: Timeline understanding enables planning. If you understand timeline, planning improves.
Step 4: Post-Formation
Complete post-formation tasks. Set up operations. Maintain compliance.
Obtain EIN
Get Employer Identification Number:
- Apply with IRS
- Receive EIN
- Use for business
- Update accounts
Why this matters: EIN enables operations. If you obtain EIN, operations become possible.
Open Business Bank Account
Open business account:
- Choose bank
- Provide documents
- Open account
- Fund account
Why this matters: Bank account separates finances. If you open account, finances separate.
Create Operating Agreement
Create operating agreement:
- Define ownership
- Set rules
- Establish structure
- Document agreement
Why this matters: Operating agreement protects interests. If you create agreement, protection improves.
Maintain Compliance
Stay compliant:
- File annual reports
- Pay annual fees
- Update information
- Follow rules
Why this matters: Compliance maintains status. If you maintain compliance, status maintains.
Pro tip: Use our TAM Calculator to evaluate market opportunity and inform business formation decisions. Calculate market size to understand growth potential.
Your Next Steps
Formation roadmap provides clear path. Follow roadmap, understand state variations, complete required steps, file correctly, then maintain compliance to keep business legal.
This Week:
- Begin planning using our TAM Calculator
- Start choosing business structure
- Begin gathering required information
- Start researching state requirements
This Month:
- Complete planning phase
- Select and reserve business name
- File formation documents
- Complete post-formation tasks
Going Forward:
- Continuously maintain compliance
- Meet annual requirements
- Update as business changes
- Follow state regulations
Need help? Check out our TAM Calculator for market evaluation, our task ordering guide for sequencing, our myth-busting guide for clarity, and our document library for forms.
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Sources & Additional Information
This guide provides general information about business formation. Your specific situation may require different considerations.
For market size analysis, see our TAM Calculator.
Consult with professionals for advice specific to your situation.
