Business Setup Timeline for Your First 90 Days

Your first 90 days of business setup follow a clear sequence. Each phase depends on the one before it: you need an EIN before you can open a bank account, you need a bank account before you can connect accounting software, and you need accounting in place before you run payroll. Skipping ahead creates costly gaps you will pay for at tax time.

Here is the order that matters most:

• Week 1: EIN, business bank account, domain registration, and Google Business Profile
• Weeks 2 through 3: Accounting software setup and chart of accounts
• Weeks 3 through 4: Business insurance quotes and purchase
• Weeks 4 through 6: Business website launch
• Weeks 6 through 8: Payroll setup (if hiring employees)
• Weeks 8 through 10: Contracts, licenses, and legal compliance
• Weeks 10 through 12: Growth tools (CRM, email marketing, business credit)

The four quick wins above cost $0 and take under 2 hours combined. If you accomplish nothing else on Day 1, handle those four items and you will be ahead of 80% of new founders.

Your year-1 operational setup budget (excluding rent, inventory, and employee salaries) typically falls between $1,200 and $4,500 for a service-based business. Product-based businesses and restaurants should budget $3,000 to $10,000+ due to insurance, inventory systems, and equipment. Below is a realistic line-item breakdown.

• Business banking: $0 to $30/month. Mercury, Bluevine, and Relay offer free business checking. Traditional banks like Chase and Bank of America charge $12 to $30/month unless you meet a minimum balance. That is $0 to $360/year. See our business bank account fees breakdown.
• Accounting software: $0 to $50/month. Wave is free. QuickBooks Online runs $35 to $99/month for the plans most small businesses need (as of 2026). That is $0 to $600/year. See our best accounting software comparison.
• Business insurance: $500 to $3,000/year. General liability insurance has a median premium of $45/month ($538/year) according to Insureon. A business owner's policy (BOP) bundling liability and property coverage costs about $83/month ($990/year). See our general liability insurance guide.
• Website and hosting: $200 to $1,000/year. Domain registration runs $10 to $20/year. A Squarespace Business plan is about $33/month. WordPress hosting on SiteGround or Bluehost starts around $3 to $12/month.
• Payroll (if applicable): $50 to $200/month. Gusto starts at $49/month plus $6 per employee (as of 2026). That is $588 to $2,400/year for a small team. See our best payroll services guide.
• Registered agent: $50 to $300/year. Required in every state where your LLC is registered. See our best registered agent services comparison.
• Legal tools and templates: $0 to $200/year. Free contract templates are available from many sources. A legal plan with Rocket Lawyer or LegalZoom runs $10 to $40/month if you need ongoing access.

Year-1 total estimate:

• Solo freelancer or consultant (no employees, minimal insurance): $1,200 to $2,000
• Small LLC with 1 to 3 employees: $3,000 to $5,500
• Brick-and-mortar retail or restaurant: $5,000 to $10,000+

The IRS allows you to deduct up to $5,000 in startup costs plus an additional $5,000 in organizational costs in your first year (as of 2026), so keep every receipt from day one. See IRS Publication 535 for details.

Your 90-day setup checklist changes based on your business type. Here is how the timeline and cost shift for five common models.

Freelancer or Consultant

• Priority setup: EIN, bank account, accounting software, professional liability (E&O) insurance, and a simple portfolio website.
• You can skip payroll if you are a single-member LLC taxed as a sole proprietor. If you elect S Corp taxation, you need payroll to pay yourself a reasonable salary.
• Estimated year-1 setup cost: $1,200 to $2,000.

E-Commerce Business

• Priority setup: EIN, bank account, Shopify or WooCommerce store, sales tax registration in nexus states, product liability insurance, and a shipping workflow.
• Budget an extra $2,000 to $20,000+ for initial inventory depending on your product.
• Estimated year-1 setup cost (excluding inventory): $2,500 to $5,000.

Brick-and-Mortar Retail

• Priority setup: Everything above, plus commercial lease, BOP insurance, POS system, local business license, signage permits, and workers' compensation insurance.
• Retail businesses typically need $30,000 to $50,000 total to get started including inventory and build-out.
• Estimated year-1 setup cost (ops only, excluding build-out): $4,000 to $8,000.

Professional Services (Law Firm, CPA, Consulting Firm)

• Priority setup: EIN, bank account, professional liability insurance (often $1,000 to $3,000/year), trust/IOLTA accounts (for attorneys), CRM, and client portal.
• Estimated year-1 setup cost: $2,500 to $5,000.

Restaurant or Food Service

• Priority setup: Health department permits, food handler certifications, liquor license (if applicable), commercial kitchen insurance, POS system, payroll, and workers' comp insurance.
• Restaurants typically require $50,000 to $150,000+ total to open, with operational setup costs of $5,000 to $10,000.
• Estimated year-1 setup cost (ops only): $5,000 to $10,000.

These are the most expensive mistakes founders make during setup. Each one has a real dollar cost.

• Mixing personal and business finances. Using your personal bank account for business transactions makes bookkeeping a nightmare and weakens your LLC's liability protection. If a court decides you have not maintained separation, your personal assets become fair game. Opening a business bank account is free at Mercury, Bluevine, or Relay.
• Skipping business insurance. General liability insurance costs a median of $45/month. The average slip-and-fall claim costs about $45,000, according to The Hartford. One uninsured claim can sink a business that has been open for 6 months.
• Waiting until tax season to set up accounting. Reconstructing a full year of transactions costs $500 to $2,000 in bookkeeping fees. If you connect accounting software to your bank in week 2, transaction categorization happens automatically.
• Paying a third party for your EIN. The IRS issues EINs for $0 directly at IRS.gov. Third-party services charge $50 to $300 for a free government form. The online application takes about 15 minutes and gives you your number instantly.
• Not registering for state taxes before selling. Most states require sales tax registration before your first taxable sale. Selling without a permit can result in penalties of $50 to $1,000+ depending on your state, plus back taxes owed with interest.
• Overspending on a website too early. You do not need a $5,000+ custom site in month one. A $200 to $400/year site on Squarespace or WordPress gets you live fast. Invest in a custom build once you have validated your business model and have revenue. See our best website builders comparison.
• Classifying employees as independent contractors. The IRS and state labor departments impose penalties for misclassification. Federal penalties start at $50 per misclassified W-2 you failed to file, plus 1.5% of the wages paid. See DOL.gov for current enforcement guidelines.