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How to Start a Business the Right Way: A Step-by-Step Guide

Written by Main Street Professionals | Oct 3, 2025 9:35:55 PM

How to Start a Business the Right Way: A Step-by-Step Guide

Starting a business is one of the most rewarding but overwhelming things you can do. If you’re navigating the early stages—figuring out what entity to choose, how to handle taxes, or even how to build your brand—this guide is for you. CPA, attorney, and entrepreneur Mark J. Kohler shares clear, practical advice to help you get your business off the ground the right way.

Whether you’re a side hustler, freelancer, or full-time entrepreneur, these tips will help you avoid common mistakes and build a solid foundation.

Step 1: Identify Your “Why” Before Anything Else

Before worrying about LLCs, websites, or business cards, ask yourself: Why am I starting this business? Your “why” is what fuels your motivation and sets the tone for everything else.

Entrepreneurs to stop focusing on the technical steps and start with clarity:

  • Who do you want to serve?
  • What problem are you solving?
  • What does success look like? 

This vision will guide every decision you make from structure to marketing.

Step 2: Choose the Right Entity — LLC vs. S-Corp

Mark J. Kohler's trademarked “Trifecta” strategy simplifies entity structuring into three parts:

  1. Operations (LLC or S-Corp)
  2. Holdings (LLC)
  3. Estate Planning (Trust)

Here’s the breakdown:

  • Start with an LLC: For most small businesses, an LLC is the best place to start. It’s flexible, affordable, and easy to manage.
  • Convert to an S-Corp later: Once you’re netting around $50,000 or more annually, consider electing S-Corp status for tax savings. This allows you to pay yourself a reasonable salary and take distributions, reducing self-employment taxes.
  • Avoid payroll too early: If you’re not yet profitable, don’t worry about payroll. Sole proprietors and LLC owners don’t need to put themselves on payroll until they convert to an S-Corp.

Bonus Tip: Don’t overcomplicate things by rushing to form a C-Corp or complex partnership structure. Most business owners should start simple and adjust as they grow.

Step 3: Set Up the Right Foundation

When forming your entity, make sure you also:

  • Get an EIN from the IRS
  • Open a separate business bank account
  • Track income and expenses from day one
  • Use accounting software or hire a bookkeeper

If you plan to form the entity yourself, great but working with a professional can help ensure you don’t miss compliance steps that will cost more later.

Step 4: Use a Registered Agent to Protect Your Privacy

When registering your business with the state, you must provide a registered agent and physical address. It is not recommended to use your personal home address. Instead, use a service like Main Street Business Services to serve as your registered agent and provide a business address. It’s affordable (just $125/year) and protects your privacy from clients, customers, or tenants who might otherwise be able to look you up.

Step 5: Don’t Get Stuck on Branding — Just Start

Many entrepreneurs lose momentum by agonizing over the perfect name, logo, or brand colors. Make a decision and move forward.

Branding is important, but you can refine it over time. To avoid analysis paralysis:

  • Choose a name that’s easy to spell and say
  • Keep your logo simple
  • Use color palettes that are warm and professional (a marketing specialist can help)

If needed, work with a trusted marketing professional to build your style guide. 

Step 6: Handle Sales Tax Compliance (f Selling Products)

If you’re selling physical products—especially online—sales tax can get complicated quickly. 

  • Consult a tax advisor who understands multi-state sales tax
  • Know the rules for nexus and where your products ship from
  • Don’t try to handle sales tax yourself unless you understand the filing requirements

Sales tax varies by state, and many advisors in Mark’s national network can help you stay compliant, even if they don’t live in your state.

Step 7: If You’re Struggling to Profit, Host a Mastermind

If you’ve launched your business and you’re still breaking even after 4–6 months, it might be time to pivot or get outside feedback.

Try having a Mastermind Dinner:

  • Invite 4–5 trusted friends, colleagues, or mentors
  • Present your business model, target audience, and financials
  • Let them ask you questions, then offer one piece of advice each

This type of feedback can help you uncover blind spots and discover simple tweaks that make your business more profitable.

Step 8: Don’t Be Your Own Island — Join a Community

Entrepreneurship is hard. You don’t have to do it alone.

Here are just a few ways to stay educated and connected:

These resources give you direct access to professionals, ongoing education, and a supportive network of like-minded business owners.

Final Thoughts: You Can Do This!

Starting a business can feel overwhelming, but it’s a journey worth taking. “Don’t beat yourself up. Be confident and excited. It’s not a race—it’s a marathon. Be humble, be vulnerable, and surround yourself with people who believe in your vision.” Mark J. Kohler

The tools are out there. The structure is clear. Now it’s time to take action.

Ready to Start Your Business?

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