The Day-One Business
Setup Checklist.

Decide on business entity type (Sole Prop / LLC / S-Corp / C-Corp) †

Consult your attorney for final decision

File Articles of Organization or Incorporation with your state †

Usually $50–$500 filing fee

Obtain Registered Agent (can be yourself or a service)

Required in most states for LLC/Corp

Draft basic Operating Agreement (LLC) or Bylaws (Corp) †

Protect member/owner agreements

Register DBA (Doing Business As) if operating under a trade name

Check state + county requirements

Register for state business license or general contractor license

Varies by state and trade

Verify local municipality business permit requirements

City/county may require separate license

Apply for Federal EIN (Employer Identification Number) via IRS.gov

Free, takes 10 minutes online

Register for state income tax withholding (if hiring employees)

Required before first payroll

Register for state sales tax if your services are taxable †

Varies by state and service type

Determine if you need to file quarterly estimated taxes †

Consult your CPA

File for S-Corp election if applicable (Form 2553) †

Deadline-sensitive — consult CPA

Open a dedicated business checking account

Use your EIN, not SSN. Bring Articles + EIN letter.

Open a business savings account for tax reserves

Minimum: set aside 25–30% of net income

Apply for a business credit card (separate from personal)

Good for tracking + building credit

Never mix personal and business transactions again

This is the single most important rule

Set up ACH/wire transfer capability on business account

For large payments and payroll later

Establish an owner's draw or payroll process †

Consult CPA for proper compensation structure

Select accounting software (QuickBooks, Wave, Xero)

QuickBooks Online recommended for most contractors

Configure chart of accounts for your service type

Do NOT use default template — it's not built for trades

Set up expense categories (materials, subs, labor, overhead, admin)

Categories drive all future reporting

Connect business bank account(s) to accounting software

Auto-import transactions

Set up invoicing templates in accounting software

Standard terms, deposit line, payment options

Establish bookkeeping cadence (weekly or bi-weekly reconciliation)

Do NOT let it go 90 days without looking

Set up credit card / ACH processing (Stripe, Square, or similar)

Contractors leave money on table without card acceptance

Establish standard payment terms (Net 15 or Net 30 max)

Net 60+ is financing your clients for free

Set minimum deposit requirement for all new projects

25–50% is standard for most trades

Create written invoice template with due date and late fee terms

Written = enforceable

Set up a collections follow-up sequence (3-touch minimum)

Day 1 / Day 7 / Day 14 after due date

Create simple AR aging tracker (what's outstanding and how old)

Review every Friday

Obtain General Liability Insurance (GLI)

Required by most GCs and clients. Minimum $1M/$2M.

Obtain Commercial Auto Insurance (if using vehicles for work)

Personal auto won't cover business use

Obtain Workers' Comp Insurance (if hiring employees)

Required in most states before first employee

Review Professional Liability / E&O needs for your trade

Consult your insurance broker

Add business owner's policy (BOP) or umbrella if needed

Ask your broker about bundled options

Set up a dedicated business email address

yourname@yourbusiness.com — not Gmail/Yahoo

Create a simple weekly owner review habit (15 minutes, Friday)

Revenue in / Cash in bank / What's outstanding

Document one SOP for the most critical repeatable process

Estimating, onboarding a client, or job closeout

Set up a basic contact/lead tracking system

Can be a spreadsheet to start — just track it

Define your payment and deposit policy in writing

Attach to every proposal and contract