A practical checklist of the registrations, licenses, tax accounts and employer obligations most new US businesses need, in the order you usually tackle them.
| Structure | Key points |
|---|---|
| Sole proprietorship | Simplest; no separate legal entity, so the owner is personally liable |
| General partnership | Two or more owners; partners share liability |
| Limited liability company (LLC) | Separate entity that can limit personal liability; flexible tax treatment |
| S corporation (tax election) | Pass-through taxation with eligibility limits on owners and shares |
| C corporation | Separate taxpayer; suits businesses planning to raise outside investment |
Structure affects liability, taxes and paperwork. Our guides to sole proprietorships and C corps vs S corps explain the differences. Many owners speak with an accountant or attorney before choosing.
See how EZTime works for your industry, from time tracking to shift scheduling.
An Employer Identification Number (EIN) is the federal tax ID for your business. You need one if you hire employees, operate as a corporation or partnership, or meet other IRS criteria, and banks usually ask for one to open a business account. It is free from the IRS. See our step-by-step guide on how to apply for an EIN.
| Level | Examples |
|---|---|
| Federal | Required only for certain activities, such as alcohol production, firearms, aviation, commercial fishing or some transportation |
| State | Professional and occupational licenses (contractors, cosmetology, healthcare), sales tax permits, industry-specific licenses |
| County and city | General business license, zoning approval, building permits, health permits, signage permits, home occupation permits |
| Industry-specific | Food service health permits, liquor licenses, pesticide application, security guard licenses |
Requirements vary widely by location and industry, so check with your state and local government. Our guide on how to get a business license explains where to look.
Set up bookkeeping from day one so you can file accurately and on time.
Open a business bank account and keep business and personal money separate. This makes bookkeeping and tax filing easier and, for LLCs and corporations, helps preserve the liability protection of the entity. See how to open a business bank account.
| Requirement | What it involves |
|---|---|
| State payroll tax accounts | Register for state unemployment insurance and, where applicable, state income tax withholding |
| Federal payroll taxes | Withhold income tax and FICA, pay employer taxes and file payroll tax returns |
| Form W-4 | Collect a federal W-4 (and any state form) from each employee |
| Form I-9 | Verify identity and work authorization within three business days of the start date; see our Form I-9 guide |
| E-Verify | Required for some employers by state law or federal contract |
| New hire reporting | Report new hires to the state directory, generally within 20 days |
| Workers’ compensation | Buy coverage or qualify to self-insure, as required by your state |
| Posters | Display required federal and state workplace notices |
| Wage and hour rules | Pay at least the applicable minimum wage, overtime to non-exempt employees and on time |
| Recordkeeping | Keep payroll and time records for required periods; see our record retention guide |
Our new hire paperwork checklist covers the forms in detail.
| Law | Generally applies to employers with |
|---|---|
| Fair Labor Standards Act (minimum wage, overtime) | Most employers, regardless of size |
| Equal Pay Act | Most employers covered by the FLSA |
| Title VII (discrimination) | 15 or more employees |
| Americans with Disabilities Act (employment) | 15 or more employees |
| Age Discrimination in Employment Act | 20 or more employees |
| COBRA (continuation coverage) | 20 or more employees with a group health plan |
| Family and Medical Leave Act | 50 or more employees |
| WARN Act (layoff notice) | 100 or more employees |
Many state laws apply to smaller employers, sometimes from the first employee. Our federal employment laws guide explains each law.
The Occupational Safety and Health Act covers most private employers. You must keep the workplace free of recognized serious hazards, follow OSHA standards that apply to your work, train employees on hazards and, depending on industry and size, keep injury and illness records. Some states run their own OSHA-approved plans with additional rules. See our workplace safety guide.
Deciding whether someone is an employee or an independent contractor, and whether an employee is exempt or non-exempt from overtime, are two of the most important early decisions. Getting them wrong can lead to back wages, taxes and penalties. See our guides on contractors vs employees and exempt vs non-exempt employees.
Accurate time records are a legal requirement for non-exempt employees and the basis for correct pay. EZTime gives small businesses an attendance clock on mobile, tablet or NFC, scheduling software and a digital employee file with e-signatures for onboarding documents, so time and paperwork are organized from your first hire.
Usually a business structure, state or local registration, an EIN, licenses and permits, tax registrations, a business bank account and insurance.
Not always. Sole proprietors without employees can often use their SSN, but an EIN is required for employers, corporations and partnerships, and many banks ask for one.
Most states require it once you have employees, with some exceptions. Check your state’s rules.
The employee completes Section 1 by the first day of work, and the employer completes Section 2 within three business days of the start date.
The FLSA applies to most employers regardless of size, and many state laws apply from the first employee. Other federal laws start at 15, 20, 50 or more employees.
Often yes. Many cities require a general business license and sometimes a home occupation permit.
EZTime’s digital employee file keeps documents such as certificates and sends reminders before they expire.