What Is The Legal Checklist For Startups In The USA? Know The Requirements

The startup ecosystem of the USA is growing massively. It’s not just a statement, and even the Global Startup Ecosystem Index 2025, published on StartUpBlink, says that the United States holds the number 1 position in the world.

StartUpBlink also shares the following details about the startup scenario in the USA.

• The number of startups in the USA is 71,212.
• Thus, 90% of the startups in North America are present in the USA.
• Furthermore, for every 100,000 people in the USA, there are 22 startups.
• The annual growth rate of the startup ecosystem in the USA from April 2024 to April 2025 was 18.2%.
• Six hundred seventeen startups among these companies are Unicorns, with a valuation of more $1 billion.

All the data shows that it is the best time to have a startup business in the USA. However, the legal checklist for startups in the USA is quite extensive, and in this guide, we will discuss those parameters in detail.

What Is The Legal Checklist For Startups In The USA?

The legal checklist for startups in the USA works as the rock-solid foundation. Initially, it becomes critical in earning the confidence of the investors, and it functions as a safety net for the business.

Moreover, if you maintain compliance with the legal checklist, there will be smooth operations and better chances of long-term success.

Here is your step-by-step checklist.

Determine The Right Business Structure

The liabilities of your business and tax structure depend on the type of business structure you choose.

• Corporation
• Partnership
• Sole Proprietorship
• LLC or Limited Liability Corporation

These are some popular business structures for a startup business. However, if you want the operations to be very flexible, you will have to choose the LLC structure.

Register The Name Of Your Business

Your business will not have any identity if it does not have a name. So, you will have to first choose a name for your business and then get it registered with the right authorities.

First, search for a trademark for your business.

Then, you need to register the name of your business with the name of your state or country.

Find a domain name for the website of your business.

NameCheap and GoDaddy are some popular platforms for the registration of your domain name.

Get The Essential Permits And Licenses

Irrespective of the industry you operate in, you will need licenses and permits. Furthermore, the licenses you need will depend on your location.

Here are examples of some common types of licenses required for different businesses.

Make A Draft Of Critical Business Documents

Drafting the essential legal documents is crucial for any startup. Without proper documentation, your business will not have credibility. Furthermore, there will be misunderstandings and disputes.

Have a look at the table below for a detailed understanding of the types of documents you will need for your startup business.

Ensure The Protection Of Your Intellectual Property (IP)

Your branding essentials, logos, and creative ideas are the intellectual properties of your business. Furthermore, you can use the following methods to protect your intellectual property.

• Copyrights: These help to protect the images, designs, and content from plagiarism.
• Patents: If you have developed any unique technology or any product, you must get patents for the same.
• Trademarks: Trademarks protect the name of your brand and the logo.

Build The Best Tax Structure Suitable For Your Business

• You have to register your business with the local tax authority of your state. Avoiding the same will lead to penalties.
• Choose an EIN or Employee Identification Number and tax ID.
• You have to take care of the miscellaneous taxes, such as payroll tax, sales tax, and income tax.
• Get a tax consultant on board to ensure tax compliance and keep all the expenses on track.

Have A Proper Business Account

You need to have a separate business account. Having a dedicated business account helps in the following ways.

• Taking care of the cash flow
• Tracking all the expenses
• Establishing the credibility of the business

Ensure Compliance With The Employment Laws

You may have in-office employees, or there can be employees working remotely for you. You have to ensure that the working conditions in your office are safe, there is no discrimination, and all your employees are receiving fair wages.

All of these can be achieved only with a clear legal guideline.

Have Terms And Conditions And A Privacy Policy

Of course, you will have a website and a digital presence. So, as a legal checklist, you must have terms and conditions policies ready and updated.

Get Insurance

From the initial days to years of operation, your business will have to face many unprecedented challenges. Insurance is the shield that will protect you from these perils.

The most important types of insurance are:

• Worker’s Compensation
• Product Liability Insurance
• General Liability Insurance

Legal Checklist For Startups: A Few More Things To Keep In Mind

Taxation and adherence to legal checklist are something that need professional assistance. You can have an in-house team or work with a consultant according to your budget and requirements.

However, when you start a startup business, you also need to stay updated about the laws and changing compliance regulations.

Legal Checklist For Startups: Frequently Asked Questions (FAQs)

Here are the frequently asked questions and answers about the legal checklist for startups.