How to start a small business
Starting a small business is less about the idea and more about execution: entity, money, licenses, first customers. Here's the shortest path from zero to open.
Pick an idea you can validate in 30 days
The best small-business ideas solve a problem you already understand — from a job, hobby, or community you know.
Validate with 20 paid pre-orders or 10 letters of intent before quitting anything.
Set up the entity
LLC is the default for most small businesses — cheap, flexible, protects personal assets.
File with your Secretary of State, get an EIN from the IRS (free, 10 minutes), open a business bank account.
Fund the first 12 months
Bootstrap with savings, then layer in an SBA microloan or line of credit.
Bring on a partner via Venturα if you need operational help plus capital.
Licenses, insurance, and taxes
Check your city and state for a general business license, plus industry-specific (food service, liquor, transportation).
Get general liability insurance day one; add workers' comp when you hire.
Set aside 25–30% of profit for federal + state taxes from the first dollar.
Frequently asked questions
- How much money do I need to start a small business?
- Service businesses can start under $5K. Brick-and-mortar (restaurant, gas station, boutique) typically needs $75K–$500K.
- LLC or S-corp?
- Start as an LLC. Elect S-corp taxation once profits reliably exceed ~$50K to save on self-employment tax.
Meet partners on Venturα
Match with vetted small-business owners and investors in your city.
Get started