The essentials every U.S. small business needs in place, from legal setup, banking and insurance to bookkeeping, payroll, time tracking, scheduling, policies, cybersecurity and record keeping, with a checklist to see what you are missing.
The right insurance depends on your industry and risks. Common coverages include general liability, commercial property, professional liability for service businesses, commercial auto if you use vehicles for work and workers’ compensation, which most states require once you have employees. Talk to a licensed insurance agent about what your business and your contracts require. Construction businesses can see our construction insurance guide.
See how EZTime works for your industry, from time tracking to shift scheduling.
Essentials checklist complete.
Before your first employee starts, set up the basics. See hiring your first employee for the full process.
If you have hourly employees, you must keep accurate records of hours worked under the Fair Labor Standards Act and state law. Accurate time records are also your best defense against wage claims. Paper sign-in sheets and spreadsheets work for very small teams but become error-prone as you grow. A digital time clock records hours, breaks and overtime automatically and produces payroll-ready reports. See time record retention requirements.
Once you have more than a handful of employees, schedules and messages scattered across texts and paper cause missed shifts and confusion. Pick one place for schedules, time off requests and team announcements. See how to create an employee schedule.
Small businesses are frequent targets because they often lack basic protections. Use strong, unique passwords and multi-factor authentication, keep software updated, back up data, train employees to spot phishing and limit access to sensitive information. Our small business cybersecurity checklist covers the essentials.
Keep business, tax and employment records organized and for the required periods. Payroll records, time records, I-9 forms and tax filings each have retention rules under federal and state law. A consistent digital filing system makes audits, loans and disputes far easier.
Two small rules come up in the first year of almost every business:
The first protects your wallet: sites that charge for EIN ‘filing’ are charging for something free. The second protects you in a wage dispute: if you cannot produce time records, the employee’s recollection of hours often carries the day. Set up time tracking before your first hire, not after the first question.
Most of these are cheap to prevent and expensive to fix later. Review this list once a year, or whenever you open a new location or add a new type of worker.
| Area | Essential | Done? |
|---|---|---|
| Legal | Structure chosen, EIN, licenses and permits | ☐ |
| Banking | Separate business account, payment methods | ☐ |
| Insurance | Liability, property, workers’ comp as needed | ☐ |
| Finance | Bookkeeping system, tax savings, cash flow tracking | ☐ |
| People | I-9, W-4, new hire reporting, payroll, posters | ☐ |
| Time | Accurate time and break records | ☐ |
| Operations | Schedules and team communication in one place | ☐ |
| Policies | Handbook, acknowledgments, safety procedures | ☐ |
| Marketing | Website, local profile, review process | ☐ |
| Security | Passwords, MFA, backups, training | ☐ |
| Records | Organized and retained for required periods | ☐ |
EZTime handles many of the people-related essentials in one app: a time clock by mobile app with GPS stamp, web, tablet kiosk or NFC tag, employee scheduling, time off requests and PTO balances, announcements, digital HR forms with e-signatures and payroll-ready reports exported to Excel or PDF. EZTime does not process payroll itself; it prepares accurate hours for your payroll provider. Plans start at $2 per employee per month with a 14-day trial, no credit card required.
A legal structure and registrations, an EIN, required licenses, a separate bank account, insurance, a bookkeeping system and, once you hire, a compliant payroll and time tracking setup.
An EIN, state payroll tax registration, workers’ compensation insurance, a payroll system, I-9 and W-4 processes, new hire reporting, labor law posters and a way to track hours.
Yes, for non-exempt employees. Federal and state laws require accurate records of hours worked, and the records protect you in wage disputes.
It depends on your industry and risks. Common coverage includes general liability, property, professional liability, commercial auto and workers’ compensation, which most states require for employees.
Typically accounting software, a payment or POS system and, once you have employees, payroll plus a time tracking and scheduling tool.
Not always. A sole proprietor with no employees can often use their Social Security number, but you need an EIN to hire employees, and many banks and partnerships or corporations require one. EINs are free from the IRS.
Open a business checking account, pay all business expenses from it, pay yourself by transfer and get a business credit card if you need one. Mixed accounts make bookkeeping harder and can weaken liability protection for LLCs and corporations.
As soon as you have hourly staff, two jobs take more time than most owners expect: recording hours accurately and building a schedule everyone can see. Under the federal Fair Labor Standards Act (FLSA), employers must keep accurate records of hours worked and pay non-exempt employees overtime for hours over 40 in a workweek, and some states add daily overtime or meal-break rules. This is general information, not legal advice.
EZTime covers all three with a time clock app, employee scheduling and payroll-ready exports, from $2 per employee per month. See pricing and start a 14-day trial.
EZTime covers time tracking, scheduling, team communication and digital HR forms, with a 14-day trial and no credit card needed.