Fast answer
To start a business in the United States, validate the market, define your target audience and offering, calculate costs, choose a legal structure, register the business if applicable, apply for an EIN when required, review local licensing requirements, open a bank account, and start selling while tracking sales figures. Following the correct order prevents you from spending money on branding before you know if the market is buying.
Note: This guide is for informational purposes only. For tax, legal, or immigration decisions, consult qualified professionals.
The complete route in a table
| Stage | What you should produce | forward signal |
|---|---|---|
| IDEA | Problem, client, solution, and initial price. | You can explain it in one sentence. |
| Market validation: | 10 to 20 conversations or pre-sales. | Someone asks for a price or pays. |
| Plan | Costs, margin, channels, operation and goals. | You know how much you need to sell per month. |
| Structure | LLC, corporation, sole proprietor or other option. | You understand taxes and basic responsibility. |
| Register | Name, state, EIN, licenses if applicable. | You can open an account and formally invoice. |
| Sales | Offer, simple page, tracking and referrals. | You have business conversations every week. |
| System | Processes, metrics, calendar, and finances. | The business doesn't depend solely on memory. |
The SBA's 10 Steps to Starting a Business summarizes the business start-up process as a sequence of market research, planning, financing, location, structure, name, registration, tax IDs, licenses, and a bank account. This list isn't bureaucracy; it's a way to reduce errors before committing any money.
Validation: test before investing
Many Hispanic entrepreneurs start with a genuine skill: cooking, cleaning, repairing, selling, childcare, designing, transportation, construction, or consulting. The difficult leap is transforming that skill into a service. A useful service clearly defines what problem you solve, for whom, in what area, with what results, and at what approximate price.
Before creating a logo, LLC, or a complete website, talk to your customers. Ask them what they're currently using, what bothers them, how much they're paying, what they're worried about, and what it would take for them to switch providers. If no one wants to discuss the problem, it might not be serious enough. If everyone's asking for a price quote, that's a red flag.
Simple financial plan
Your plan doesn't need 40 pages. It needs numbers you can review every week. Calculate your initial investment, fixed expenses, variable cost per sale, profit margin, price, taxes, target salary, and break-even point. If you don't know how many sales you need to cover rent, gas, equipment, and your own time, you don't have a business yet—you're just doing business.
| Number | How to use it |
|---|---|
| Initial investment | What you need before selling: equipment, permits, brand, inventory, deposit. |
| Fixed expense | What you pay for even if you don't sell: software, insurance, rent, phone, vehicle. |
| Variable cost | What goes up with each sale: supplies, packaging, commissions, labor. |
| Margin | What remains after delivering the product or service. |
| Breakeven | Sales are necessary to avoid losing money. |
Registration, EIN, permits and bank
The SBA: Registering your business recommends checking where you should register your business based on your physical presence, customers, income, or employees. The IRS: Obtaining an EIN is useful for things like bank accounts, taxes, employees, and other procedures; the IRS indicates that obtaining one directly is free and that if you're forming a legal entity, it's best to register it with the state before applying for an EIN.
Licenses depend on the activity and location. The SBA's licensing and permitting guidelines state that restaurants, retail, vending machines, construction, and other activities are typically regulated at the state or local level. Therefore, simply copying another entrepreneur's application process is insufficient: two businesses with similar names may require different permits.
For legal structure, see the guide to opening an LLC . For industry-specific ideas, also check out the cleaning business guide and the Miami food truck guide.
Sales: the business begins when someone pays
A simple website, a Google profile, real photos, testimonials, WhatsApp, and follow-up can sell more than a perfect brand without an offer. The first version of your sales system should answer: what you sell, how much it costs, what's included, how to schedule an appointment, what happens after payment, and how to ask for referrals.
- Create an entry offer that's easy to buy.
- Publish real evidence: photos, cases, before/after, reviews.
- Track each quote in 24, 72 hours and 7 days.
- Record where each customer comes from.
- Ask for referrals when the customer is satisfied, not months later.
30-day checklist
- Week 1: Validate problem, customer, price, and competition.
- Week 2: Calculate costs, create offer, and test initial sale.
- Week 3: Decide on structure, registration, permissions and bank account.
- Week 4: Launch minimum presence, tracking and sales calendar.
If you want support to review your case before spending, you can request advice for entrepreneurs and come prepared with these numbers.
FAQ
What is the first step to starting a business in the United States?
Validate the market: know who is buying, what problem they have, how much they would pay, and what solution you can offer. Then come planning, structure, registration, permits, and sales.
Do I need an LLC to get started?
Not always. It depends on the risk, activity, partners, contracts, taxes, and growth plan. Many businesses consider it, but it should be chosen carefully.
When should I apply for an EIN?
The IRS recommends first forming the legal entity with the state if you are creating an LLC, corporation, or partnership. Then you can apply for an EIN if applicable.
What permits do I need?
It depends on the industry, state, county, and city. Food, construction, retail, transportation, beauty, and professional services can have different rules.
Official sources and resources
- SBA: 10 steps to start a business
- SBA: Register your business
- SBA: Licenses and Permits
- IRS: Obtain an EIN
If you want to turn this guide into an action plan for your situation, check out our consulting services for entrepreneurs or explore other resources at Hispanos Emprendedores.
Case study: validate before formalizing
Someone wants to open an online store selling Latin products. Before forming a company, buying inventory, and paying for design, they can validate their idea through 20 conversations: with Latin mothers, international students, small restaurants, and local communities. They can publish a waitlist, test three bundles, and gauge whether anyone pays for pre-orders. If no one buys, the problem wasn't the LLC; it was the product offering.
Another example: a cell phone repair technician already has weekly clients through referrals. In that case, formalizing the business might be more urgent because there are already payments, risks, guarantees, and a potential need for a physical location. The same guide leads to different decisions depending on market evidence.
Signs that you're ready to make it official
- Have you already been paid or do you have clients with a real intention to pay?
- You can clearly explain what you sell and what you don't sell.
- You know your main costs and approximate margin.
- You need a bank account, contract, insurance, permits, or a payment platform.
- You have an initial customer channel: referrals, Google, networks, alliances, or direct sales.
- You understand what obligations come after registration.
Formalizing early can be beneficial if operations or risk are already in place. Formalizing without validation can become a list of payments before any sales have materialized. The key is to move forward with evidence, not with fear or perfectionism.
How to know if an idea deserves 90 days of focus
Give an idea 90 days if it meets three conditions: it solves a common problem, you can reach the customer without spending too much, and the profit margin covers your time. If an idea requires a lot of investment, many permits, and hard-to-find customers, it doesn't mean it's bad, but it might not be the best first bet.
During those 90 days, track conversations, quotes, sales, profit margin, reviews, and referrals. If you only have likes but no payments, change your offer or channel. If you have payments but are exhausted and have no profit margin, raise your price or simplify your operations. If you have payments, profit margin, and repeat business, then it makes sense to formalize your business and grow more decisively.
