What Order to Start a Business: The Right Steps to Get Funding-Ready
Starting a business is exciting, but the order you do things in can make or break your funding potential. Here is the correct sequence to set everything up right the first time.
The Order You Do Things In Matters More Than You Think
Starting a business can feel overwhelming, but breaking it down into manageable steps makes the process much easier. One of the most important and most overlooked things is the order in which you tackle each task.
While it is tempting to jump straight into registering your business and applying for funding, following the right sequence ensures everything is set up correctly from the start and, just as importantly, positions you to actually qualify for funding later.
Six Steps to Start Your Business the Right Way
Each step builds on the one before it. Follow them in order and your foundation will be cleaner, clearer, and easier to build upon.
Choose Your Name & Check the Domain Together
Before any formalities like applying for an EIN or registering your business, lock down your business name, and you want your website domain to match it. The mistake many people make is choosing a name first, then discovering the matching domain is already taken.
Do both searches at the same time, before you commit to either. Check that your name is available with your Secretary of State and that the matching domain is available, so your company name and website line up from the start.
Choosing a Name That Helps You Get Funded
Names that are too generic, overly trendy, or easily confused with other businesses can cause problems with banks and lenders, and names suggesting a high-risk sector may be frowned upon. Lenders and investors want to see a name that conveys seriousness and trust.
Business Address: Skip the Home Address
Using your home address can look unprofessional and raises privacy concerns. Consider a virtual business address you can use on official documents, business cards, and your website. It is far more affordable than office space while still giving your business credibility.
Set Up Your Business Email, Website & Phone
Once your name and domain are locked in, set up your business email, website, and phone number, all using your business name. There is an important reason to do this before you open your bank account: when you open the account, you want to give the bank your business email and business phone, not your personal ones. That way your business identity is on file from day one.
Why You Need a Website
Customers expect to find information about your business online, and a professional site on your own domain (for example, www.YourBusinessName.com) is the best way to provide it. Since you already confirmed the domain in Step 1, it should match your business name perfectly.
Why Your Email Should Match Your Name
Ideally your email matches your business name (for example, info@YourBusinessName.com). It does not always work out perfectly, but a professional email on your own domain adds real authority. Personal Gmail or Yahoo addresses can look unprofessional to clients, partners, and lenders.
Register Your Business with the Secretary of State
With your name, domain, email, website, and phone set up, it is time to officially register your business with your state. This step comes before applying for your EIN, and the order matters.
What This Step Involves
Choose your business structure. Decide whether to form an LLC, S-Corp, or C-Corp. Each has different legal and tax implications, so choose the one that best aligns with your goals.
File with the Secretary of State. Submit the appropriate formation documents (such as Articles of Organization or Articles of Incorporation) and pay the filing fee, which varies by state. This makes your business a legally recognized entity with legal protections and the ability to enter contracts.
Apply for Your EIN
Now that your entity legally exists, apply for your Employer Identification Number (EIN) directly through the IRS. It is free, and you never have to pay a third party for one.
An EIN is a unique identifier for your business, much like a Social Security number is for an individual. You will need it to open business bank accounts, file taxes, hire employees, and apply for business licenses.
Open a Business Bank Account
With your business registered and your EIN in hand, open your business checking account. At this point I also recommend applying for a business credit card, provided your personal credit profile allows for it. A business credit card helps you establish business credit and streamline expenses.
A business checking account keeps personal and business finances separate, which is critical for taxes and essential for maintaining your limited liability status. This is also where the earlier steps pay off: because you set up your business email and phone in Step 2, you give the bank your true business contact information instead of personal details, keeping your identity clean and consistent.
What You Will Typically Need
Your EIN, your state registration documents, a copy of your business license (depending on your state), and your ID. Keeping clean financial records from day one is key when you apply for funding later.
Explore Business Funding Opportunities
Now that your business is set up properly, it is time to think about funding. Doing the earlier steps in the right order improves your chances, because lenders and investors want to see that your operations are in order.
Consider small business loans. Explore options like SBA loans or microloans. Keep in mind that SBA loans for brand-new startups are difficult to get, and many banks want to see at least two years of operating history before extending credit.
Look into grants available for your business type, and explore angel investors or venture capital if you are seeking equity funding.
Before You Apply for Funding, Check Your Credit Utilization
Lenders review your personal credit, and high utilization is one of the most common reasons applications stall. See where you stand in seconds with our free tool.
Frequently Asked Questions
The main things people ask about the order of starting a business.
What should I do first when starting a business?
Start by choosing your business name and checking that the matching domain is available at the same time. This foundation is what every later step, from your EIN to your bank account, depends on.
Do I need an EIN before registering my LLC?
No. Register your business with your state first, then apply for your EIN. The IRS ties your EIN to your legal entity name and formation date, so the entity should exist before you apply. Applying too early can force you to cancel and reapply.
Should I get my website and business phone before opening a bank account?
Yes. Set up your business email, website, and phone first so that when you open your bank account you can give the bank your business contact information instead of your personal email and cell number. It keeps your business identity consistent from the very first account.
Should my business name and domain match?
Ideally, yes. Search your Secretary of State database and a domain registrar at the same time, and only commit to a name once both the state name and the matching domain are available. That way your company name and website line up from the start.
How long before a new business can get funding?
It varies. Many banks want to see at least two years of operating history before extending traditional credit, which is why some entrepreneurs use options like shelf corporations to shorten the wait. Getting your credit and business setup in order first improves your odds either way.
Need Help Setting Up Your Business the Right Way?
I can guide you through every step in the correct order and help you access the funding you need to grow. Let us set your business up for success, the right way, from the start.