Starting a Company in 10 Practical Steps

Are you planning a new business? You’re in good company. There are more than 36 million small enterprises in the U.S., which account for 99.9% of all businesses.1 In August 2025, entrepreneurs filed 473,679 new business applications.2 This is slightly higher than the average 430,000 new business applications each month which represents a 50% increase in just five years.3

While starting a company can be a dream come true, it can also be overwhelming. Breaking the launch process into manageable steps not only makes it easier but also increases the likelihood of success. Ten tips for starting a small business will help guide the process.

1. Research your business ideas.

   A great idea alone doesn't guarantee success. There must be demand for the products and services you want to sell. Thoroughly research your small business idea to ensure it is viable. Research should include the target audience, how they’ll use your goods or services, and competitors. Include these questions in your initial evaluation:
   • What problem do I want to solve for customers?
   • Are there enough customers who would be willing to buy what I’m offering?
   • How many other companies are competing for the customers I want to serve?
   • What makes my solution and/or business different from my competitors?
   
   Surveys, focus groups and interviews with potential customers can help evaluate the demand for your products or services, as well as gain insights into customer preferences and needs.
   
   Researching your business idea before starting a company will also help to determine whether you’re addressing an existing problem or driving innovation.
   
   

2. Develop a business name and identity.

   The name and identity are among the first big decisions you’ll make when planning a new business. Aim for something memorable and relatable to potential customers.
   
   When developing a name, ensure it’s not already in use in your state. Consider trademark protection if you want to secure exclusive usage rights. Also, check whether an appropriate domain for your website is available.
   
   Branding helps to establish a unique identity in the marketplace and makes it easier for customers to recognize your business. Strong branding also builds trust and credibility, which drives customer loyalty.
   
   

3. Decide on a business structure

   There's no single business structure that is the right fit for every small business. Options include sole proprietorship, partnership, a limited liability corporation (LLC) or a corporation. Each structure comes with benefits and drawbacks. So, take time to research what's best for your business. However, liability protection limits and flexibility make the LLC the most popular choice for new businesses. A CPA or an attorney can help you select the best option when planning a new business.
   
   

4. Write a business plan.

   A business plan is a road map that takes your idea from a possibility to fully operational. Businesses with a clear plan are better positioned to secure financing and growth. So, invest sufficient time to create a comprehensive plan when starting a company. Business consulting and services provider, Strategyzer offers a free, downloadable template to help think through your business plan, as well as create a shorter version that you can easily share as needed.4
   
   

5. Register your business.

   Determine whether you need to register in multiple states based on where you operate. During the registration process, you must designate a registered agent who will manage official legal documents and correspondence. Many entrepreneurs opt for a registered agent service to simplify filings and ensure compliance with state regulations when planning a new business.
   
   Certain types of small businesses must also register with the federal government. If your business operates in federally regulated industries — such as agriculture, alcohol, firearms, aviation or mining — you must obtain specific federal licenses or permits. If your business operates across state lines or engages in activities subject to federal oversight, you must ensure compliance with all federal registration requirements.
   
   Registering with the appropriate local, state and federal agencies not only keeps your business compliant but also builds credibility and helps you avoid costly penalties.
   
   

6. Obtain tax IDs.

   After registering your business, apply for your tax IDs. Visit the IRS website to request a federal and state Employer Identification Number (EIN).5 The EIN is essentially a Social Security number for your business. You’ll need an EIN to open a business checking account, apply for business licenses and permits and hire employees.
   
   

7. Apply for necessary licenses and permits.

   When planning a new business, it’s important to secure the right licenses. The types of licenses and permits you need, including federal, state and local, will depend on your business structure, industry and location. For example, businesses involved in regulated sectors such as food service, construction or professional services often require specific operational permits and industry certifications. To avoid fines or disruptions, research the necessary licenses and permits on state, county and city government websites. If your business requires federal oversight, consult the appropriate agency for guidance.
   
   

8. Open a business checking account.

   Keep your business and personal finances separate with a business checking account. In addition to effectively managing your company’s finances, you’ll establish credibility with lenders, customers, and vendors.
   
   

9. Establish your accounting system.

   Set up a structured process to track income, expenses and cash flow. You’ll gain real-time insights into the business’ financial health, ensure timely tax filings and make informed decisions about growth opportunities. In addition, an organized accounting system simplifies compliance regulation and helps prevent costly errors. If you don’t plan to manage the books yourself, hire an accountant or bookkeeper to help. Consider outsourcing payroll if you have employees.
   
   

10. Buy business insurance.

    When starting a company, insurance offers peace of mind and financial stability. Business insurance covers unexpected losses such as property damage, liability claims or employee injuries. These policies also help to cover legal fees, ensuring continuity in the event of accidents, fraud and natural disasters. Businesses in construction, health care, transportation and food services are legally required to carry business insurance. Accountants, attorneys, consultants and other service providers are often required to maintain professional liability insurance.
    
    

Get the resources you need when planning a new business.

If you’re starting a company, you don’t have to do it alone. As an SBA-preferred lender, Synovus helps entrepreneurs accomplish their dreams. To learn about financial options, call 1-888-SYNOVUS (1-888-796-6887) or stop by one of our local branches.