A 5-Step Checklist for Starting A Business in 2026

Starting a business isn’t easy, but it’s possible with a lot of dedication and hard work. Once you’ve done your initial market research, identified your customers and created a business plan, much of what follows comes down to execution. Here are 5 steps to help you get started with forming a business in 2026:  

1. Register your business

Once you’ve picked the perfect name for your business, you must legally register it with the state and sometimes local authorities in order to protect your business name. Where and how you register will depend on your location and business structure. While in some cases it’s not legally required to register a business operating under your personal name, doing so is strongly recommended, as you would otherwise miss out on important legal and tax benefits and would not be entitled to personal liability protection. 

2. Obtain an EIN number 

When you register your business with the federal government, you will receive a state tax ID, also known as an Employer Identification Number (EIN). It’s a 9-digit number issued by the federal government that is unique for your business, similarly to how a social security number identifies an individual. It’s free to apply for an EIN number and it’s important that you do this as soon as you have registered your business because it will allow you to: 

• Pay federal taxes 
• Hire employees
• Files tax returns 
• Open a business bank account 
• Operate as a corporation or partnership 

3. Open a business bank account 

After establishing an EIN number, it’s crucial to separate business and personal finances. While it might feel convenient to use one account early on, mixing the two can create real complications later. Here are 5 reasons why you should separate your personal and business finances: 

• Taxes are easier: When business income and expenses live in one place, it’s much simpler to track deductible expenses, pull clean records, and reduce the risk of mistakes or missed deductions.
  
• It strengthens your credibility. Customers, vendors, and lenders often take a business more seriously when payments and transactions run through a business account (not a personal one).
  
• It helps protect your personal assets. Keeping finances separate supports liability protection, especially when paired with a legal structure like an LLC and proper corporate formalities by reducing the risk of personal exposure to business-related debts or claims.
  
• It supports financing. Many lenders require a business bank account when you apply for financing, and clean business financials can make approval easier.
  
• It improves cash flow visibility. A dedicated account makes it easier to understand what’s coming in, what’s going out, and what you can safely reinvest, whether you’re paying vendors, covering tools, or planning for growth.

When choosing a provider, consider factors like fees, savings options, support, and whether the account fits how you actually run your business. For founders who prefer an online-first option, platforms like Lili’s online banking platform for small businesses, which  offers business checking that can be opened quickly without visiting a branch, along with features like no minimum balance, a high-yield business savings account (4.00% APY)¹, and FDIC insurance up to $3M.

4. Set up your core financial and operational tools 

Once you’ve set up your business bank account, now it’s time to set up your financial command center where you can manage your day-to-day operations. This includes tools for invoicing, payments, expense tracking and basic accounting. Having these systems set up early will help you stay organized from day one and ensure your financial records are accurate and up-to-date as your business grows. 

5. Start building your business credit 

Building business credit takes time, so starting early can pay off if you ever want to qualify for financing, like a business credit card, line of credit, equipment loan, or lease. In most cases, you’ll need your EIN and a business bank account first.

Here are a few basics to get started:

• Business credit is tracked separately from personal credit.
  It’s reported through three main business credit bureaus: Dun & Bradstreet, Experian, and Equifax.
  
• Third parties may check your business credit.
  Vendors, lenders, and potential partners can review your business credit reports to evaluate whether your business is financially reliable.
  
• You need at least one tradeline to start building credit.
  A tradeline is an account (with a lender or vendor) that reports your payment activity to a business credit bureau.
  
• Strong credit comes from consistent, responsible behavior.
  On-time payments and careful credit use help build a positive record over time, while missed payments can make it harder to access financing later.
  
• Monitor your business credit periodically.
  Checking in helps you spot errors, catch fraud early, see who’s inquiring about your business, and track your progress. With Lili, you can monitor your Dun & Bradstreet scores directly from Lili. 

Following these five steps can help you open a business in 2026 with a strong operational foundation. Taking the time to properly register your business, separate your finances, set up the right tools, and establish financial credibility early can save you significant time and friction down the line. When the fundamentals are in place, founders are better positioned to focus on what really matters: building great products, serving customers, and scaling sustainably.

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