Starting something new?
Here’s your roadmap.
Whether you’re launching a business or a non-profit, there’s a lot to set up before the door open. This guide will help you get it right from the start — so you’re building on solid ground.
A note from us: We're bookkeepers — not CPAs or attorneys. This guide reflects what we’ve seen work to our clients and the tools we recommend. For legal and tax advice, we’ll always point you to the right people.
I’M STARTING A…
Before anything else, you'll need to decide how your business is legally structured. This affects your taxes, personal liability, and how you pay yourself.
- Sole Proprietorship — Simplest to set up, but offers no personal liability protection
- LLC — Most popular for new businesses; separates personal and business assets
- S-Corp or C-Corp — More complex; typically for businesses planning to grow or take on investors
Your EIN is essentially your business's Social Security number. You'll need it to open a bank account, hire employees, and file taxes — even if you don't plan to have employees right away.
- Apply directly through the IRS website — it's free and takes about 10 minutes
- You'll receive your EIN immediately upon completing the application
- Beware of third-party websites charging fees — always go directly to the IRS
Mixing personal and business money is the #1 thing that makes bookkeeping messy and taxes stressful. Keep all business income and expenses through this account only. You'll typically need your EIN and business registration documents to open one.
Profit First is a cash management method that flips the traditional formula: instead of Revenue – Expenses = Profit, you allocate profit first, then operate on what's left. Relay's multiple sub-accounts make it the perfect bank for running Profit First.
Ask us how to get started with Profit First →A spreadsheet can work short-term, but accounting software will save you enormous time and headache when tax season arrives.
- Xero — Our top recommendation; clean interface and integrates seamlessly with Relay and Ramp
- Digits — Modern software with AI-powered insights and live visibility
- QuickBooks Online — Widely used and familiar to most CPAs
Taxes as a business owner look different than taxes as an employee. It's worth understanding the basics so you're not caught off guard.
- Self-employment tax — You pay both the employer and employee portions
- Quarterly estimated taxes — You may need to make payments 4x per year
- Sales tax — Required if you sell products or certain services
Starting clean and staying consistent is always cheaper than catching up later. Neglected books are the most expensive work we do.
- Reconcile your bank accounts monthly
- Keep receipts for expenses over $75
- Pay yourself a consistent owner's draw or salary
- Review your P&L at least quarterly
A nonprofit organization must be formally incorporated before applying for federal tax-exempt status. This is a state-level process — requirements and fees vary, so check your state's Secretary of State website for specifics.
- File Articles of Incorporation as a nonprofit with your state
- Draft bylaws — the internal rules your organization will operate by
- Establish a board of directors (required for 501(c)(3) status)
- Define your mission clearly — the IRS will scrutinize this during your application
Just like a for-profit business, your nonprofit needs an EIN before opening bank accounts or applying for 501(c)(3) status.
- Apply at IRS.gov — it's free and takes about 10 minutes
- Apply as an "organization" (not as an individual)
- You'll receive your EIN immediately
This is the big one — 501(c)(3) status means donations to your organization are tax-deductible, and you're exempt from federal income tax. It takes time, but it's worth it.
- Form 1023 (full application) or Form 1023-EZ (streamlined, for smaller orgs) filed with the IRS
- Processing can take 3–6+ months for the full form
- You'll need financial projections or history, a narrative of activities, and your bylaws
Nonprofits need their own dedicated bank accounts — no mixing organization funds with personal money, ever. The right banking setup also makes fund separation much easier.
- You'll typically need your EIN, Articles of Incorporation, and a board resolution to open an account
- Consider who will have signatory authority — most boards require two signatures on large transactions
- Set up separate accounts for restricted funds or grants so the lines never blur
Nonprofit bookkeeping is fundamentally different from for-profit bookkeeping. You track money by fund and restriction level — not just revenue and expenses. This is called fund accounting.
- Unrestricted funds — can be used for any purpose
- Temporarily restricted funds — grants or donations tied to specific programs or timeframes
- Permanently restricted funds — endowments, where only income can be spent
Tax-exempt doesn't mean no paperwork. Nonprofits have their own annual reporting requirements to stay in good standing with the IRS and your state.
- Form 990 — annual information return filed with the IRS (990-N for very small orgs)
- State charitable solicitation registration — most states require registration before you can legally solicit donations
- Board meeting minutes — keep thorough records of board decisions
- Donor acknowledgment letters — required for tax-deductible gifts over $250
If you plan to apply for grants, you need systems in place before the money arrives. Grant funders expect detailed reporting on how their dollars were used.
- Track each grant separately — income received, expenses against it, and remaining balance
- Keep copies of all grant agreements and reporting deadlines
- Know the difference between direct and indirect costs
——————————————— WANT US TO HANDLE ALL OF THIS FOR YOU? ———————————————
DONE-FOR-YOU-SERVICE
The Business Launch Setup Package
Not everyone wants to DIY their financial foundation — and honestly, that’s the smart move. We’ll do the heavy lifting so you launch with clean, connected systems from day one. No guessing, no Googling, no going back to fix it later.
Banking Setup Guidance
We walk you through opening your Relay account and structuring it correctly from the start — including Profit First sub-accounts if that’s your system.
Accounting Software Setup
Full Xero, Digits, or QuickBooks Online setup with a chart of accounts built specifically for your business — not a generic out-of-the-box template.
Full Integration & Sync
All your accounts connected and syncing automatically — Relay, Ramp, and your accounting software working together from day one.
Ramp Card Onboarding
Get your Ramp card set up with expense categories mapped and synced to your books before you spend your first dollar.
Custom Chart of Accounts
Categories built around your actual income streams and expense types so your reports are readable and useful to you.
How It Works
Launch Checklist Review:
We walk through every step on this page with you to make sure nothing is missing before you open your doors or start accepting money.
Book a free consultation call. We learn about your business, your plans, and what you need to get off the ground — no pressure, just a conversation.
We send you a custom proposal. No cookie-cutter packages — we scope exactly what applies to your situation and send a clear breakdown.
We build your financial foundation. You focus on your business. We handle the setup, connections, and configuration — start to finish.
You launch with confidence. Clean books, connected systems, and a clear picture of your finances from day one.
STARTING AT
$297
(ONE-TIME SETUP FEE)
Pricing is scoped to your specific situation — a simple setup may land right at $297, while a more complex configuration (Profit First structure, nonprofit fund tracking, multiple integrations) will be quoted accordingly after your free consultation call.
Ready to skip the setup stress?
The call is free and there’s no pressure. Let’s figure out what you need.
Just need ongoing bookkeeping? We’ve got you covered.
We handle monthly books for businesses, nonprofits, and churches nationwide. Clean records, clear reports, no surprises.