Advice for launching your biz
Six steps to register, protect and grow your service-based business
Starting a product consulting business, or any new business for that matter, doesn’t require much overhead or cash, or even a legal team.
A clear plan, some homework and a few key filings are all you need.
Take it from a future LLC owner going through the motions in Massachusetts.
Here’s what I've learned (and wish I'd known sooner)...
Step 1: Register your business name
Registering a business name with your state typically costs between $10 to $100. The Small Business Association has a form you can use to look up your state and find a link to the department that handles registrations.
Step 2: Determine the most suitable type of business
Sole Proprietorship: Simple but offers no liability protection
Partnership: Shared ownership and responsibility
Limited Liability Company (LLC): Offers liability protection and flexible tax options (A Delaware LLC? That’s generally only worth the extra cost and compliance when you're scaling or raising funds.)
Corporation (C Corp or S Corp): Suitable for fast-growing or investor-backed companies, but involves more complexity. And C Corps involve double taxation.
While LLC’s are the most common choice for individually-owned small businesses, they’re not one-size-fits-all. If you’re unsure which legal structure fits your business best, the SBA offers a clear, widely-used overview. And, if you’re stuck on the difference between an LLC and a S corp, you’re not alone. Investopedia has a solid breakdown.
Step 3: File your Certificate of Organization online
I have not come across a single website that centralizes direct links to every state’s business registration forms. However, for LLCs, Bizee.com provides a comprehensive directory for all 50 states. For other business structures, your best starting point is your state’s Secretary of State website.
Note: If you plan to operate under a different name than your legal entity, you’ll need to register a DBA (Doing Business As) with your local municipality.
Step 4: Get Your EIN (Free!)
Apply for your Employer Identification Number via the IRS website. You’ll use it to open bank accounts and file taxes.
Step 5: Open a Business bank account
NerdWallet offers regularly updated, in-depth comparisons and reviews of business bank accounts from big to boutique institutions. You’ll need to have the following information to open an account.
A government-issued ID (it doesn’t have to be a REAL ID)
EIN
Formation docs from your state
Operating agreement (if applicable)
Step 5: Get insured
You can shop for professional liability insurance through aggregators Coverwallet.com and Policygenius.com. For policy comparisons, check out NerdWallet, the International Risk Management Institute (IRMI), Insureon and Fit Small Business.
Step 6: Be legal-ready
Use platforms like DocuSign, PandaDoc or Dropbox Sign (formerly HelloSign) for contracts and forms requiring signature.
Examples include MNDAs (Mutual Non-disclosure Agreement), MSAs (Master Service Agreement) and SoWs (Statement of Work).
Bonus steps
Build a professional website. Add tiered pricing and easy payment options, such as Stripe or PayPal. Include strong CTAs, like “Schedule a Free Consult” and “Pay Now”. Add proof points, like client testimonials, and clear terms of service.
Use a form builder or CRM (Customer Relationship Management) tool to create standard forms for collecting client info and to automate onboarding and other common emails. Popular options for small businesses include Dubsado, HoneyBook, Paperform and HubSpot.
