How to Start A Business with no money ( 5 Step Guide) and Set it up Legally
Hey Mama!
Thinking about starting a business? Whether you’re looking to help with the bills, save more for your family, or simply have some extra spending money—you’re in the right place. I’m going to keep it simple, so you can get started right away and feel confident you’re covered from the jump!
Disclaimer:
The content shared on this blog is for educational and informational purposes only and is based on my personal experience. It is not intended to be professional, legal, or financial advice. Please do your own research and consult with a licensed expert to ensure any decisions you make are right for your business and comply with local laws and regulations.
Some of the links in this post may be affiliate links, which means I may earn a small commission—at no extra cost to you—if you choose to make a purchase through them. I only recommend products and services I personally use and believe in. For more details, please read my full disclaimer [here].
Step 1: What type of business do you want to start?
Before we get into the extra stuff, let’s get clear on the kind of business you want to start. If you’re not sure yet, check out these blog posts to help you decide:
If you’re planning to keep your babies at home with you, chances are an online business might work best to give you a more flexible schedule.
Step 2: Choose your business structure
This step requires some research! Business structures vary, and so do the requirements depending on where you live. Visit the U.S. Small Business Administration’s website to get guidance on choosing the right structure.
Most people start as a Sole Proprietor because it’s the easiest and often doesn’t require formal filing. HOWEVER—make sure you fact-check with your state’s official website and consult a tax professional to make sure you’re doing things the right way. Every business is different, and so are state laws.
Step 3: Get an EIN Number
An EIN (Employer Identification Number), also called a Federal Tax Identification Number, is a unique nine-digit number assigned by the IRS to businesses. It’s basically the business version of a Social Security number.
➡️ You do NOT need to pay anyone to get this number—it’s completely free.
Get it directly from the IRS: Apply for your EIN here
Make sure to keep this number somewhere safe. You’ll need it when signing up for affiliate programs like Amazon Influencer or creating your own storefront.
Step 4: Do you need any licenses?
Depending on your business type, you might need a license. If you’re starting an online business, you likely won’t—but don’t assume. Please double-check to be sure. Every business and state is different, and it’s your responsibility to stay compliant.
Step 5: Open a business bank account
You might be thinking, “I’m not making any money yet—why would I open a business account?”
Here’s why: You need to separate your business and personal finances from day one. It makes tax season easier, and it sets your business up the right way.
I personally use Novo, and it’s been amazing—easy to use, with all the tools I need to manage my money.
✔ No monthly fees
✔ No overdraft fees
✔ No minimum balance required
It’s perfect when you’re just getting started, and it’s free! I’ve been using it for a couple of years and love it.
👉🏽 Use my referral code SabreBlack and you’ll get $40, and I’ll get $40, too—win-win!
Click here to open your Novo account with my referral code
Step 6: It’s time to get started!
Congratulations, mama! You did it!
You’ve set your business up legally and laid a strong foundation. I’m so proud of you—and I want to remind you: you’ve got this!
To help you take things further, here are a few extra resources I love:
Legal Contracts for Your Online Business
Check out Amber from The Boutique Lawyer—she sells affordable, lawyer-drafted digital contracts you’ll need, especially if you’re starting an online business.
Follow her and browse her site:
Use discount code THESAHMPLUG to get 10% off your entire order.
Here’s a direct link with the discount already applied: Get 10% off your contracts here
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Short, encouraging episodes to help you find balance, build systems, and grow your business without adding more to your plate
