You’ve got a business idea. You’re ready to serve clients, sell products, or start making money online. But then the questions start: “Do I need to hire a lawyer? How do I protect myself? What’s the legal way to do this?”
The good news? You can absolutely set up a legitimate business without hiring an attorney. Thousands of entrepreneurs do it every day. With the right information and a few affordable tools, you can get your business off the ground—legally and confidently—on your own terms.
Contents
- 1. Choose a Business Structure That Protects You
- 2. Pick and Register Your Business Name
- 3. Get an EIN (Employer Identification Number)
- 4. Open a Business Bank Account
- 5. Create Basic Contracts and Policies
- 6. Understand Your Tax Responsibilities
- 7. Know What Licenses or Permits You Need
- 8. Use an LLC Formation Service for a Head Start
- You’ve Got This—No Law Degree Required
1. Choose a Business Structure That Protects You
The first legal step is deciding what type of business entity to form. For most solo entrepreneurs and small business owners, the best option is the LLC (Limited Liability Company).
Why an LLC is the go-to choice:
- Protects your personal assets from business liabilities
- Simple and affordable to set up in most states
- Tax flexibility: Can be taxed as a sole proprietor, partnership, or S-Corp
- Professional appearance when working with clients, banks, and vendors
You don’t need a lawyer to form an LLC. Many states offer an online portal where you can file in under 30 minutes. Or, you can use an LLC formation service to handle the paperwork for you.
2. Pick and Register Your Business Name
Your business name is more than a creative choice—it’s a legal one. You need to make sure it’s available in your state and not already trademarked by someone else.
Steps to register your business name:
- Search your state’s business database to make sure the name is available
- Search the USPTO trademark database to avoid legal conflicts
- Reserve the name during the LLC formation process (in most states)
- Grab the matching domain and social handles to protect your brand
Bonus: Registering your name through an LLC also protects it at the state level—without needing to file a separate DBA (Doing Business As) unless you operate under a different name.
3. Get an EIN (Employer Identification Number)
An EIN is like a Social Security number for your business. You’ll need it to open a business bank account, file taxes, and hire contractors or employees.
How to get one:
- Apply for free through the IRS website (irs.gov)
- Takes just a few minutes
- No lawyer required
Even if you’re a solo business owner, it’s a good idea to get an EIN. It keeps your personal SSN off invoices, tax forms, and business paperwork.
4. Open a Business Bank Account
Mixing personal and business funds is one of the top legal mistakes entrepreneurs make. It can put your personal finances at risk and make tax time a mess.
To open an account, you’ll typically need:
- Your LLC formation documents
- Your EIN
- Your driver’s license or other ID
You can open an account at most traditional or online banks. Look for no-fee business checking options if you’re budget-conscious.
5. Create Basic Contracts and Policies
You don’t need to hire a lawyer to create legally sound agreements. Many free or affordable templates are available that cover the essentials for freelancers, consultants, product sellers, and service providers.
Start with these essentials:
- Client agreement or service contract – Outlines payment terms, deliverables, and liability
- Privacy policy and terms of service – Required for websites that collect user data or sell products
- Independent contractor agreement – If you hire freelancers
Just make sure you read and customize any template to fit your actual business. Legal doesn’t mean “one-size-fits-all.”
6. Understand Your Tax Responsibilities
Starting a business means stepping into the world of taxes—and it’s not as scary as it sounds when you’re prepared.
What you’ll need to handle:
- Quarterly estimated tax payments if you expect to owe over $1,000
- Self-employment taxes (Social Security and Medicare)
- State business taxes (depends on your location)
Using basic accounting software (like Wave, QuickBooks, or FreshBooks) helps you track income and expenses, categorize deductions, and prepare for tax season without stress.
7. Know What Licenses or Permits You Need
Depending on your business type and location, you may need a local license, sales tax permit, or home occupation permit—even if you work online or from home.
Common industries that need licenses:
- Food service or catering
- Consulting or coaching
- Online retail or product sales
- Event planning or beauty services
Check with your city or state’s business office. You can also use business license lookup tools online. It’s a small step that saves you from big fines later.
8. Use an LLC Formation Service for a Head Start
If you want to skip the guesswork and avoid paperwork errors, an LLC formation service is a smart move. These platforms handle:
- Filing your LLC paperwork with your state
- Obtaining your EIN
- Providing templates for operating agreements and resolutions
- Helping with compliance reminders
It’s a one-stop-shop for getting set up the right way—without needing to call a law firm.
You’ve Got This—No Law Degree Required
Setting up a legit business might sound intimidating, but with the right tools and a bit of guidance, you can do it yourself. From forming an LLC to opening a bank account and handling basic contracts, everything you need is within reach.
Smart, legal business setup doesn’t require a lawyer. It requires intention, a plan, and a few simple steps to protect what you’re building.
