Checklist for Starting a Business in 2025

Starting a business in 2025 is both exciting and challenging. Here’s the essential roadmap to get started:

• Choose the Right Business Structure: Decide between an LLC, corporation (C-Corp or S-Corp), or PLLC based on your goals, liability needs, and tax preferences. LLCs are popular for flexibility, while corporations are ideal for scaling and attracting investors.
• Register Your Business: Secure your business name, file formation documents (e.g., Articles of Organization or Incorporation), and appoint a registered agent. Costs and rules vary by state.
• Obtain an EIN: Apply for a free Employer Identification Number (EIN) from the IRS to open bank accounts, file taxes, and hire employees.
• Set Up Financial Systems: Open a business bank account, keep personal and business finances separate, and consider cloud-based accounting tools for efficiency.
• Embrace Virtual Tools: Use virtual mailboxes, cloud storage, and remote collaboration platforms to reduce overhead and operate flexibly.
• Stay Compliant: File annual reports, maintain licenses, and meet new federal requirements like the Beneficial Ownership Information Report (BOIR).
• Protect Your Business: Invest in liability insurance, draft contracts, and secure cyber insurance to mitigate risks.
• Plan for Funding: Explore traditional loans, revenue-based financing, or digital lending platforms to secure capital.

Key Tip: Staying organized with compliance and leveraging digital tools can save time and money while helping you focus on growth.

Choosing the Right Business Structure

The structure of your business has a huge impact on taxes, liability protection, access to funding, and future growth. Many entrepreneurs start with an LLC for its simplicity and flexibility, then switch to a corporation later when seeking venture capital or preparing to go public. However, changing your structure down the line comes with paperwork, fees, and potential tax issues. It’s worth taking the time to make an informed choice from the outset.

Your decision will also affect how easily you can raise funds, add partners, and expand your operations in the future. Let’s break down the key features of LLCs, corporations, and PLLCs to help you decide what fits your business best.

LLC, Corporation, or PLLC: Key Features and Benefits

Limited Liability Companies (LLCs) are a favorite among small business owners and solo entrepreneurs – and for good reason. They offer strong personal asset protection, keeping your personal property like your home or savings safe if your business runs into legal or financial trouble. On top of that, LLCs benefit from “pass-through taxation,” which means profits and losses go directly onto your personal tax return, avoiding corporate taxes altogether.

LLCs also shine when it comes to flexibility. They can have one or multiple owners (called members) and don’t require formalities like board meetings or detailed corporate records. This makes them ideal for freelancers, consultants, e-commerce ventures, and small service businesses.

Corporations are divided into two main types: C-Corps and S-Corps. C-Corporations are the standard choice for large companies. They provide the highest level of liability protection and are well-suited for raising capital, issuing stock options, and eventually going public. However, C-Corps come with double taxation – first on the company’s profits and again on dividends paid to shareholders.

S-Corporations offer a compromise. They combine liability protection with pass-through taxation, but they come with restrictions. For example, S-Corps can have no more than 100 shareholders, all of whom must be U.S. citizens or residents, and they can only issue one class of stock.

Professional Limited Liability Companies (PLLCs) cater to licensed professionals like doctors, lawyers, and architects. They provide the same protections and tax benefits as LLCs but comply with state laws that often prevent these professionals from forming standard LLCs or corporations.

By understanding these options, you can align your choice with your business goals and operational needs.

Factors to Consider for Different Entrepreneurs

Solo founders and freelancers often find LLCs to be the most practical option. They’re easy to set up, offer asset protection, and come with tax advantages. Plus, if your income grows significantly, you can elect S-Corp tax status later to save on self-employment taxes.

International entrepreneurs face unique challenges. While non-U.S. residents can own LLCs, they may encounter additional tax reporting requirements. For international founders who plan to reinvest profits rather than take distributions, C-Corporations can sometimes simplify tax complexities. This structure is also preferred if you aim to attract U.S. investors, as venture capital firms and angel investors typically favor C-Corps for their ability to issue multiple stock classes and offer employee stock options.

Partnerships and multi-founder businesses need to carefully consider ownership and management structures. LLCs provide flexibility, allowing for unequal ownership shares, customized profit-sharing, and varied management roles – all of which can be outlined in an operating agreement. Corporations, however, bring more structure through a board of directors and shareholder agreements, which can help formalize decision-making and ownership rights from the start.

If you’re planning to raise significant capital or sell your business down the line, a C-Corporation is often the better choice. Investors are more familiar with corporate structures, and acquisitions are generally easier when dealing with corporate stock rather than LLC membership interests.

Timing also plays a role. Many entrepreneurs begin with an LLC for its simplicity and later convert to a corporation when they’re ready to scale or offer equity to employees. While this approach works, it can trigger tax implications and requires careful planning with a tax professional. Choose a structure that aligns with your long-term growth and funding plans as you build your business for 2025 and beyond.

Registering Your Business and Meeting Legal Requirements

Once you’ve chosen your business structure, the next step is to officially register your business. This involves securing your business name, filing the necessary formation documents, and appointing a registered agent. Each of these steps comes with specific requirements that vary by state, so understanding the process ahead of time can save you headaches. These foundational tasks also prepare you for other essential steps, like obtaining an EIN and setting up business bank accounts. Let’s break down the process.

Securing a Business Name

Your business name is more than just a label – it’s your legal identity. Registering it provides state-level protection, ensuring no one else in your state can operate under the same name. However, this protection is limited to your state, which is why many business owners opt for federal trademark registration to expand their protection nationwide.

Start by brainstorming names that reflect your brand and the products or services you offer. Keep in mind that states have specific rules for business names. For example, your name cannot duplicate an existing registered name and must include the correct suffix (like "LLC" or "Inc.") based on your business structure.

To ensure your desired name is available, use your state’s business name search tool and the U.S. Patent and Trademark Office (USPTO) trademark search tool. For instance, if you’re forming an LLC in Delaware, you’d check the Delaware Division of Corporations database and the USPTO database to confirm your name isn’t already in use. This step is crucial to avoid potential legal disputes down the line.

If you plan to operate under a name other than your legal business name, you may need to register a "Doing Business As" (DBA) name. Also known as a trade name or fictitious name, a DBA typically costs less than $100 to register.

Once your name is confirmed, secure your online presence. Register your domain name through an accredited registrar and claim your business name on social media platforms. Setting up a Google Business Profile can also help establish your online identity. With your name secured, you’re ready to move on to filing formation documents.

Filing Formation Documents with the State

After securing your business name, the next step is filing your formation documents with your chosen state. The cost to register your business generally ranges under $300, but fees vary depending on your state and business structure.

For LLCs, you’ll file Articles of Organization, while corporations file Articles of Incorporation. These documents typically include your business name, registered agent details, business purpose, and management structure. You can file these documents through your state’s online portal or use a service provider. For example, BusinessAnywhere offers a $0 business formation service where you only pay the state fees.

Once your filing is approved, you’ll receive a Certificate of Organization (for LLCs) or a Certificate of Incorporation (for corporations), which officially establishes your business.

Appointing a Registered Agent

Every LLC and corporation is required to have a registered agent. This is the person or company authorized to receive legal documents, tax notices, and other official correspondence on behalf of your business. This requirement applies in all 50 states, and your registered agent must have a physical address in your state of incorporation and be available during regular business hours.

While you can serve as your own registered agent, many business owners choose professional services for added privacy and reliability. Professional registered agents ensure you never miss important documents and help maintain compliance. For instance, BusinessAnywhere offers a free registered agent service for the first year with business formation, followed by an annual fee of $147.

Since your registered agent’s information is included in your formation documents, selecting a dependable service from the start is key to avoiding compliance issues or administrative headaches down the road.

Obtaining Tax IDs and Compliance Documents

Once your business is officially registered and you’ve appointed a registered agent, the next step is to secure key tax IDs and compliance documents. These materials are essential for establishing your business’s identity with the IRS, defining internal operations, and meeting federal reporting requirements. They ensure your business is prepared to operate within the law.

Applying for an EIN (Employer Identification Number)

An Employer Identification Number (EIN) is a 9-digit federal tax ID issued by the IRS, formatted as 12-3456789. Despite its name, an EIN is not just for businesses with employees. It’s required for most business types, including LLCs, corporations, and even single-member LLCs, especially if they need to open a business bank account, pay employment or excise taxes, or withhold taxes on income paid to non-resident aliens.

Applying for an EIN is free through the IRS website, and approval is typically immediate. Alternatively, you can use BusinessAnywhere’s EIN service for $97 to streamline the process. To apply, have your business formation documents, the responsible party’s SSN or ITIN, and details about your business activities ready.

Once your EIN is secured, you’ll need to formalize your internal operations with the right agreements.

Drafting Operating Agreements or Corporate Bylaws

While not always legally required, having an operating agreement (for LLCs) or corporate bylaws (for corporations) is crucial for defining how your business operates internally. These documents establish the rules, procedures, and structure for decision-making and business relationships, offering clarity and protecting personal assets.

For LLCs, an operating agreement outlines member roles, profit and loss distribution, management structure, and processes for adding or removing members. Similarly, corporate bylaws detail the roles of directors and officers, voting procedures, meeting protocols, and stock issuance rules. Even single-member LLCs can benefit from an operating agreement, as it helps maintain a clear distinction between personal and business assets – important for preserving limited liability protection.

Without these agreements, businesses default to state laws, which might not align with their specific needs. If your business has multiple owners or a complex ownership structure, it’s wise to consult an attorney to ensure all scenarios are addressed.

Filing the BOIR (Beneficial Ownership Information Report)

After laying the groundwork for compliance, the next step is federal reporting. Under the Corporate Transparency Act, which took effect in 2024, LLCs and corporations must file the Beneficial Ownership Information Report (BOIR) with the Financial Crimes Enforcement Network (FinCEN). This report is designed to combat financial crimes like money laundering.

The BOIR requires businesses to disclose information about individuals who own 25% or more of the company or exercise significant control over it. This includes names, addresses, birth dates, and identification numbers for each beneficial owner, as well as similar details for the person who filed your formation documents with the state.

For businesses formed in 2024 or later, the BOIR must be filed within 90 days of formation. Existing businesses have until January 1, 2025, to submit their initial report. Any changes to beneficial ownership must be reported within 30 days. Failure to comply can result in hefty fines and penalties.

To make the process easier, BusinessAnywhere offers a BOIR filing service for $37, ensuring your report is accurate and submitted on time. They also provide automated compliance alerts to remind you of future deadlines and changes to reporting requirements. Keeping your BOIR updated is critical – if there are changes to beneficial owners or contact details, you must file an updated report promptly to avoid penalties.

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Setting Up Business Operations and Virtual Infrastructure

Getting your business up and running involves setting up financial systems, creating a professional image, and equipping yourself with the digital tools necessary for daily operations. These steps will form the backbone of your business and ensure everything runs smoothly.

Opening a Business Bank Account

A business bank account is a must-have for keeping your personal and business finances separate. This not only simplifies tax preparation but also safeguards your limited liability status. To open an account, you’ll need specific documents ready to go.

Here’s what most banks will ask for:

• Articles of Incorporation or Articles of Organization
• Your EIN confirmation letter from the IRS
• Government-issued photo ID for all account signers
• A business address

Some banks might also request your operating agreement or corporate bylaws, so it’s good to have those handy too.

Most accounts require an initial deposit, typically between $25 and $500, though some banks waive this for certain businesses or if you maintain a minimum balance. If you’re working remotely or internationally, look for banks with strong online banking options. Many now allow you to open and manage accounts entirely online, though some may still require a video call or in-person visit for verification. To maintain privacy and flexibility, consider pairing this with a virtual address.

Using a Virtual Mailbox for Privacy and Flexibility

A virtual mailbox service gives you a professional business address without tying you to a physical location. This is especially helpful for remote entrepreneurs, digital nomads, or anyone who prefers to keep their home address private.

Virtual mailboxes handle your mail and packages at a real street address. They scan and digitize your mail, giving you quick online access. If you ever need the original documents, most services offer global forwarding to send them wherever you are.

For example, BusinessAnywhere offers virtual mailboxes in states like Florida, Arizona, New Mexico, and Wyoming. Plans start at $20 per month for two recipients, including unlimited scanning and storage. The Premium plan, at $30 per month, supports up to five recipients, while the Advanced plan, priced at $65 per month, accommodates up to 20 recipients.

Beyond convenience, a virtual mailbox keeps your home address off public business records, offering an extra layer of privacy and professionalism. This is particularly important for solo entrepreneurs or small business owners who work from home but want to project a polished image. Once your financial and mailing systems are in place, the next step is setting up tools for seamless remote collaboration.

Using Remote Work Tools

Efficient digital tools are the backbone of modern business, especially if you’re managing a remote team or working with clients across time zones. Cloud-based solutions are key for round-the-clock accessibility and smooth collaboration.

Here are some essential tools to consider:

• Cloud storage platforms: These allow you to store, organize, and share important documents like contracts and financial records. Features like version control, access permissions, and automatic backups protect your data.
• Communication tools: Video conferencing platforms, instant messaging apps, and cloud phone systems keep you connected with clients, partners, and team members. For example, BusinessAnywhere offers a cloud phone service with features like call forwarding, voicemail transcription, and multi-device access.
• Remote notarization services: If your business involves handling contracts or legal documents, online notary services can save you time. BusinessAnywhere’s remote notary service, priced at $37 per notarization, is accepted in all U.S. states, eliminating the hassle of finding a local notary.
• Project management platforms: These help you assign tasks, track deadlines, and monitor progress across projects and team members.

Setting up these tools early ensures your business stays organized and professional from day one, giving you a strong foundation to grow and adapt as needed.

Maintaining Compliance and Business Health

Getting your business off the ground is just the beginning. To keep things running smoothly and avoid potential pitfalls, you need to stay on top of compliance tasks like licenses, tax filings, insurance, and contracts. These ongoing responsibilities are essential for avoiding penalties and keeping your business secure and ready for growth.

Staying on Top of Licenses and Permits

The licenses and permits your business needs depend on your industry, location, and operations. For example, certain federal licenses are required for regulated industries like food production or alcohol distribution. At the state level, many professional services require specific licenses, and you might also need a general business license or a sales tax permit if you’re selling products. On the local level, permits for zoning, signage, health department approval, or fire safety may be necessary – even for businesses that operate online.

Since most licenses and permits require periodic renewal, it’s important to stay on top of renewal schedules. Check with your state or local authorities to confirm deadlines, and set up a reminder system to avoid lapses. Keeping digital copies of your documents in an organized system can also save you from scrambling when renewals are due.

Filing Annual Reports and Taxes

Regular reporting is another must for compliance. LLCs and corporations are typically required to file annual reports, with fees and deadlines varying by state. Make sure to check your state’s specific requirements so you’re not caught off guard.

If your business is taxed as an S-Corp, you’ll need to file the necessary federal paperwork each year. For instance, BusinessAnywhere offers S-Corp tax election services for $97, which includes preparing and filing IRS Form 2553 to confirm your S-Corp status (though you’ll still need to handle annual tax returns). Additionally, if you’ve filed a Beneficial Ownership Information Report (BOIR) and your business details change, you generally have 30 days to update your information. BusinessAnywhere also provides BOIR filing services for $37 to help you meet FinCEN requirements.

To stay organized, consider creating a compliance calendar. This can track key deadlines for state annual reports, federal tax filings, and any industry-specific obligations, ensuring you never miss an important date.

Securing Business Insurance and Drafting Contracts

Insurance and contracts are essential safeguards for your business. General liability insurance covers claims related to bodily injury, property damage, and personal injury, while professional liability insurance (also called errors and omissions insurance) is crucial for service-based businesses to address claims of negligence or mistakes. Premiums will vary based on your industry, business size, and coverage needs, so it’s important to choose policies that fit your specific risks.

As more businesses move online, cyber liability insurance has become increasingly important. This type of coverage can help mitigate the financial fallout from data breaches or cyberattacks, making it a critical addition for businesses in today’s digital world.

Contracts are equally important for protecting your interests. Client agreements should clearly define the scope of work, payment terms, deadlines, and termination procedures. Employment contracts, especially for remote workers, should outline compensation, benefits, job responsibilities, confidentiality clauses, and termination terms. Vendor and supplier agreements should specify delivery timelines, quality standards, payment terms, and liability limitations, along with provisions for handling unexpected events.

Many of these documents can now be managed online, and remote notary services make notarization convenient for businesses with distributed teams. Regularly reviewing your insurance policies and contracts ensures they stay aligned with your evolving business needs, giving you peace of mind as your company grows.

Conclusion: Your Roadmap to Business Success in 2025

Starting a business in 2025 can feel more achievable with a clear and structured plan. This guide has walked you through the essentials – from picking the right business structure and meeting legal requirements to embracing virtual operations that let you work from anywhere.

Getting the planning and compliance right is crucial for a smooth launch. Properly registering your LLC or corporation, filing your BOIR on time, and staying on top of annual reports and tax obligations can save you from unnecessary penalties and headaches down the road.

A solid plan doesn’t just help you stay compliant – it can also uncover ways to save money. For instance, traditional office spaces can cost anywhere from $233,000 to $403,000 annually, while virtual office setups typically range between $4,800 and $14,400 per year. That’s a potential savings of up to $388,600 annually. On top of that, virtual operations can boost productivity by up to 22% and reduce startup costs by as much as $11,000 per employee each year.

Using tools like BusinessAnywhere, as mentioned earlier, can make the process faster and simpler. Tasks that used to take weeks – like forming your business, securing an EIN, or setting up a virtual mailbox and registered agent – can now be completed in as little as 24 hours. This efficiency allows you to focus on what really matters: building your product, attracting customers, and growing your business.

Investing in virtual infrastructure, such as mailbox services, remote notarization, and automated compliance tools, can give you a competitive edge and set the stage for long-term success.

FAQs

What’s the difference between an LLC and a corporation, and how do I choose the right one for my business?

The main distinction between a Limited Liability Company (LLC) and a corporation lies in how they’re structured, taxed, and managed. An LLC is known for its flexibility – it has fewer formal requirements and uses pass-through taxation. This means the company’s profits are taxed directly to its owners (referred to as members). On the other hand, corporations – especially C corporations – are more rigid in structure, requiring a board of directors and separate taxation for the company and its shareholders.

Choosing the right option for your business depends on your specific goals. If you value simplicity and flexibility, an LLC might be the way to go. However, if you’re looking to raise substantial capital or issue stock, a corporation could align better with your needs. Think about your management preferences, long-term vision, and your comfort level with handling complexity when making your decision.

What are the cost and efficiency benefits of using virtual tools and remote work platforms for my new business?

Virtual tools and remote work platforms offer a practical way to cut down business expenses. By removing the need for physical office spaces, utilities, and supplies, companies can save thousands of dollars per employee annually. Beyond cost savings, these tools boost productivity by facilitating smooth collaboration, effective communication, and steady performance – no matter where your team members are located.

Looking ahead to 2025, advancements like AI-powered solutions, virtual meeting spaces, and augmented reality are expected to make operations even more streamlined. These technologies will help businesses remain competitive and adaptable in a fast-changing environment. With these platforms in place, you can concentrate on scaling your business while keeping costs manageable and workflows efficient.

How can I make sure my business complies with new regulations like the Beneficial Ownership Information Report (BOIR)?

To comply with regulations such as the Beneficial Ownership Information Report (BOIR), make sure to submit your beneficial ownership report to FinCEN by March 21, 2025. Double-check that all details are correct and file the report electronically using secure systems. Regularly review and update your records to ensure they remain accurate.

Additionally, keep an eye on updates from FinCEN and other regulatory bodies to stay informed about any changes or new requirements. Staying ahead of these updates can help your business avoid penalties and maintain compliance.

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