Starting a Small Business
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Disclaimer
This guide is designed to help people navigate the essential steps of starting a small business. The list is not exhaustive and there are many more resources on the topics listed. This guide does not cover all the related laws and regulations. This guide was last updated on April 25, 2025 and some of the information may have since changed. The information in this guide is not legal advice and is not intended to be relied upon as legal advice. If you have a legal issue, you should not rely on this information and instead speak to an attorney.
Introduction
This guide is designed to help you navigate the essential steps of starting a small business. Whether you're launching a solo practice, an online venture, or a service-based company, this checklist walks you through the key considerations — from clarifying your business idea and selecting a legal structure to budgeting, financing, marketing, and maintaining operations. It also includes helpful tools, technology suggestions, and tips for managing your time, setting boundaries, and sustaining work-life balance. Use this guide as a practical starting point to turn your business idea into a successful and sustainable reality.
You can learn more about the services Pepitone Law provides to people starting small businesses on our Home page.
BUSINESS DEVELOPMENT AND PLANNING
Identify Your Core Service or Product
Identify a business idea that aligns with your skills, interests, and resources.
Evaluate whether your business idea will be profitable.
Does your idea solves a real need?
Are customers willing to pay for what you offer?
Write a Business Plan
Define your services or products.
Conduct a market analysis to establish your niche and competitive edge:
Learn about how the industry works
Identify your target audience: Who are they? What are their needs, interests, and habits?
Consider your competitors: who else is offering similar services or products? What are their strengths and weaknesses? How can you stand out next to them?
Spot trends and opportunities: what’s changing in the market? What’s missing from the market that you can provide?
SCORE.org provides templates and guidance on business plans and other issues related to operating your own business.
Estimate Overhead & Budget
Evaluate whether your business idea is realistic and sustainable.
Consider how much it will cost to start (start up costs) and maintain your business for 6 months to 2 years (initial overhead).
Common expenses include:
Office lease / virtual office address and support
Utilities (phone, internet, electric, heating/cooling)
Website platform and domain
Email service
Case/business management software
Videoconferencing services
Equipment, furniture, and supplies
Business insurance (discussed further below)
Banking and credit card fees
Memberships and subscriptions
Advertising and branding (logo design), SEO or content marketing services
Marketing materials (business cards, flyers)
Employee/contractor wages and benefits
Business licenses and permits
Legal, accounting, and marketing consultations
Financing Your Business
Financing a new small business means securing the money you need to get your business off the ground and support its early operations. Most businesses need capital to cover startup costs like equipment, marketing, legal setup, insurance, and initial overhead.
Capital for a small business refers to the money and resources that a business uses to start, operate, and grow.
Consider financing options like:
Personal savings
Loans from the U.S. Small Business Administration and state business agencies
Grants from nonprofit organizations
Crowdfunding
Personal loans or investors
STARTING YOUR BUSINESS
Choose a Business Entity
Consider the pros and cons of the most common business structures:
Sole Proprietorships and Partnerships
Minimal to no registration requirements (depending on location)
Owner(s) is personally liable for business debts and obligations (some exceptions for limited partners)
Limited Liability Companies (LLCs)
Usually simple registration requirements (depending on location)
Owners are generally not personally liable for most business debts and obligations
Greater flexibility than corporations, but limited in ability to raise capital (they have no stock to sell)
See Pepitone Law’s Guide to Professional Limited Liability Companies (for licensed professionals) here.
C-Corporations
Usually better for large companies as it allows for limitless growth through stock sales (raising capital)
Owners are generally not personally liable for most business debts and obligations
More complex structure, more regulations, and more record keeping requirements than LLCs
S-Corporations
IRS/state tax status, not a business type (it is not a business structure like an LLC or a C-Corp, it is a tax election)
Receive special tax treatment: avoids double taxation, and can help reduce owners’ self-employment tax
Comes with limitations on who can be an owner and how many owners the company may have
Set Up Financial Systems
Separate business and personal finances
Open business checking/savings accounts
Get a business credit card
Plan for fee collection
Choose an accounting system and/or bookkeeper
Track income and expenses consistently
Categorize expenses (e.g., rent, marketing, supplies)
Pay estimated taxes quarterly
Set Up Business Location
Choose virtual, physical, or hybrid setup
Review lease/license agreements
Purchase furniture and equipment
Ensure compliance with the Americans with Disabilities Act
Obtain business licenses and permits
Get Business Insurance
General business, cyber security, and other insurance policies can reduce your exposure to legal risk. When choosing an insurance policy, it’s important to consider:
the situations covered by the policy
the situations excluded from the policy
your responsibilities under the policy
whether the coverage amounts are appropriate for your situation
An insurance broker working with small businesses should be able to assist you with the process. You might consider speaking with a few insurance brokers/companies before deciding who you are most comfortable with. Your insurance company may have guides for how to best manage risk – like appropriate record keeping.
Typical Insurance Policies Include:
General liability insurance
Commercial property insurance
Employment Practices Liability Insurance
Cyber insurance
Key-person life insurance, disability insurance, business income insurance
Use Important Documents
Some of the documents that you may want or need include:
Services/Sales Agreements
Website Notices and Terms and Conditions
Employment/Independent Contractor Agreements
It may be best to speak to an experienced attorney to determine what documents are appropriate for your business.
Build Your Brand and Market Your Business
Create a logo, website, and tagline/slogan
Design business cards and flyers
Establish an online presence (blog, social media, podcast)
Join associations and attend events
Launch with announcements and outreach
HIRE HELP
Hiring Employees/Independent Contractors
The determination of whether an individual is an employee or an independent contractor of a business can have significant ramifications on liability, civil rights, taxes, benefits like unemployment insurance, and more. Some of the attributes of the relationship to consider are whether the individual performs their work without direction or control from the business (in the contract and in reality), performs the services in their own name or the business’s name, offers and delivers their services to the general public or business community regularly and free of the business’s input, and pays for their own licenses, supplies, and administrative costs. Business owners are encouraged to speak with an experienced attorney to assess whether individuals should be treated as employees or independent contractors. You can learn more about the distinction and the responsibilities of hiring parties in Pepitone Law’s guide, Independent Contractor or Employee? Tips for Small Businesses in New York.
Employer Responsibilities
Employers in New York must be aware of many federal, state, and local laws and regulations. It’s important to understand these rules and the responsibilities they establish. Establishing clear policies and procedures, and updating them regularly, can make legal compliance easier and more efficient. You can find out more about some of the primary regulations employers in New York State and City must be aware of in Pepitone Law’s Guide, “Responsibilities of New York Employers.”
MAINTAIN YOUR BUSINESS
Maintain Your Business Entity
Taking care to ensure that you have properly formed your business is a critical first step, but ongoing and regular legal maintenance is equally important to preserve the legal protections and tax benefits throughout the life of your business. You can learn more about maintaining your business entity in Pepitone Law’s guide, “Basic Legal Maintenance for New York Businesses.”
Foreign Entity Registration
If you “transact business” or “do business” in a state where your company wasn’t originally formed, you may need to register as a foreign business entity in that state. It depends on the state, but generally, you may be considered to be "doing business" there if you regularly enter into contracts in the state, hold client meetings in the state (it may be argued that telehealth sessions qualify), or draw steady and significant revenue from the state (as opposed to occasional or one-time transactions).
If you don’t register when required, consequences may include fines (sometimes even to the business owners personally), being barred from suing in that state until you register (which can make your contracts unenforceable), and having to pay back taxes as if you had registered properly from the start.
Prepare for Personal Emergencies
It is important to make plans for your business in case you become incapacitated or die: for clients, you can ensure smooth transitions, and for loved ones and colleagues, you can make the process easier to manage. Check out Pepitone Law’s guide, Preparing for Personal Emergencies: A Guide for Mental Health Professionals in Private Practice, for more information.
Taxes
It’s helpful to talk to an accountant in the earliest stages of starting your business. They can provide information about your responsibilities, including federal and state tax filings and appropriate record-keeping. You can learn more about your tax responsibilities in New York State and with the IRS.
MAINTAIN A GOOD WORK-LIFE BALANCE
Care For Yourself and Your Business
Define success on your terms - it’s not just about the hours you log or profit
Set reasonable and achievable goals (e.g., manageable daily to do lists)
Set clear working hours
Use time-blocking to dedicate focused time to specific tasks
Limit meetings to certain days and time windows
Use calendar or scheduling tools
Don’t check emails or messages after certain times
Remember that rest can help you make thoughtful decisions and keep your cool under pressure.
Communicate boundaries to clients, staff and collaborators
Say no when needed - avoid overcommitting or taking on too much
Create a designated workspace
Automate repetitive tasks
Review your workload regularly - is it aligned with your values and goals?
Use a journal to reflect, celebrate wins, and process challenges
Take care of your mind and body with good food, exercise, meditation, and sleep
Make time for family and friends
Make time to relax alone
Recommended Books
With a library card you may be able to borrow the following books locally or as audiobooks on the Libby app for free:
“The 7 Habits of Highly Effective People” by Stephen Covey
“The Dip” by Seth Godin
“Mindset” by Carol Dweck
Consult an Experienced Attorney
An attorney experienced in the issues impacting mental health professionals help you determine your practice’s specific responsibilities and advise you about how to efficiently meet them. You can learn more about the services Pepitone Law provides to mental health professionals on our Home and Mental Health Professionals pages.
