There are specific, fundamental steps you must take to build your new business on a solid foundation, a foundation built on Bedrock!
The 1st step is choosing what form of legal entity you will be conducting your business. The minute you decide to start a business the IRS gives you a default classification of Sole Proprietor which is the worst way to do any business. Most small businesses should be incorporated and elect to be treated as an “S” Corporation.
For a detailed explanation of business structures visit Business Structures by Joe DiChiara
Once you determine which is the most suitable structure for your business you either:
A: Accept being a sole proprietor which means you can use your name to do business under and accept all of the legal and tax consequences that go along with it or:
B: Form a legal business entity through your own state's Department of State office. Here is a link to all the Secretary of States where you can form a corporation. Most states have some valuable information on their sites about conducting business in their particular state.