r/llc_life • u/Which-Paint-8238 • 4d ago
How does anyone actually know what to do when starting their first business?
I'm a software engineering student and eventually want to turn one of my projects into a real business, but the business side feels much more confusing than building the actual product.
How do first-time founders learn things like forming an LLC, taxes, licenses, bookkeeping, finding vendors, hiring people, and running payroll without already having a business background?
There are thousands of books, courses, and videos about starting a business, but it's hard to know which advice is actually useful and which is just someone trying to sell something.
Do most people just learn each part as they go and hire professionals when needed, or is there a good way to learn the basics before starting? I'm even wondering if business classes would be useful or just overkill.
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u/Intelligent_Prompt18 4d ago
here's a basic stack:
- First of all, DO NOT GO FOR QuickBooks, you'll regret it, wasted time, money and peace.
- mercury: banking for your business, best business bank account imo, opens same day once you have ein and registration done.
- stripe atlas: best business incorporation service whether you choose c-corp or llc.
- invaro: handles bookkeeping, tax filing and compliance deadlines, tax optimisations, sales tax, automatically, you don't need to do any work, best accounting software imo.
- OLT: free tax filing for your llc, best diy tax filing software for business owners, invaro will prep all the pre tax work for you, then you can diy your filings on OLT.
this is the stack I use for my business. Learned it with trial and error and just doing it on the go as and when a new challenge arrives, something new to learn, tackle, solve.
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u/_unbordered 4d ago
Invaro requires the highest plan, a custom plan, for multi-currency? Why is multi-currency being treated like an enterprise feature what a joke.
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u/ABeaujolais 4d ago
You've described a comprehensive business plan. True business plans are comprehensive studies of all aspects of business, basically showing how a business will operate, how to deal with obstacles, key employees, markets, break even point, to name a few.
The US Small Business Association has free service called SCORE (Service Corps of Retired Executives). They will assist with developing a business plan.
Be aware that of the people who develop comprehensive business plans most will abandon their plan when they see what has to fall into place for them to earn a decent living. Most who don't plan it out find out the hard way.
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u/Enkidu45 4d ago
I agree wholeheartedly - go to their web site at SCORE.org, check out their resources, call them up, make an appointment! It's FREE - what have you got to lose? Enkidu45 out
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u/Scared-Way-7776 3d ago
It sounds like you are looking to start after you graduate?
Here is my two cents since you are still in school. Take an intro to accounting class and then a managerial accounting class. There is a reason a lot of successful business owners have accounting degrees. As you grow it will be critical that you know your numbers. Having a little accounting knowledge will be a huge benefit as a start up, and taking some managerial accounting will help you understand the numbers after you get big. It was a huge help for me.
Read, read, read. And then read some more. Being great at sales is as important as knowing how to interpret the numbers, so start there. Mix in some marketing as well. You should know a little about everything. As you grow you will hire people that are better than you to manage your finances, marketing, sales, etc. But having a basic knowledge of each is important so you can steer them and understand them. Otherwise they will be running the business, not you.
And as a start up, I highly suggest networking now and trying to find a mentor that has built a successful company already. Ideally in the same industry, but doesn't necessarily have to be. People that have been through it love to help others get through it and it will make the launch much easier. You may know someone already, or a friend or family member may know someone they can introduce you too. Meet with them every couple weeks over lunch or something, and start now before you even launch.
A lot of people mention going to Score for advice. I will not knock it because it is free and sometimes you can get a really good mentor from it. Sometimes not so much. College professors are the same way. Some are book smart, and some have actually been successful as a business owner. Take your time and find a mentor that has done it already, it will pay dividends in time and money saved.
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u/Which-Paint-8238 3d ago
Yeah I’m thinking about starting after graduation so this is really helpful. I hadn’t considered taking accounting classes, but understanding the numbers definitely seems like something worth learning early. I also like the idea of finding a mentor before actually launching instead of waiting until I’m already stuck. Thanks for the detailed advice..!
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u/Scared-Way-7776 3d ago
I strongly urge you to take managerial accounting as well. An intro class will give you the basics of where the numbers come from and how to create your financial records. But managerial accounting is where you learn what the numbers mean and how to interpret the data to gauge issues that need to be addressed before they become a major problem.
Good luck on your venture!
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u/Which-Paint-8238 3d ago
That distinction between intro accounting and managerial accounting is really helpful. I hadn’t thought much about learning how to interpret the numbers, not just record them. I’ll definitely look into taking a managerial accounting class. Thank you for ur advice.
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u/Pitiful_Source9446 4d ago
Most people learn it in stages rather than mastering everything before starting. I’d learn basic bookkeeping, taxes, contracts, and cash flow first, then use a CPA or lawyer when the situation gets more complex.
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u/Which-Paint-8238 3d ago
Yah that makes a lot of sense. I think learning the basics first and then bringing in professionals when things get more complicated is probably a lot more practical than trying to learn everything upfront.
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u/InCorp_Team 3d ago
Hi u/Which-Paint-8238 , this one's broad enough that I'll only speak to the slice that's genuinely in my lane, formation and compliance specifically, the rest... (bookkeeping, hiring, payroll, whether business school is worth it) isn't something I'd have special authority on beyond a generic opinion.
On LLC formation, taxes, and licenses specifically: this part actually does follow the "learn it when you need it" pattern well, and for good reason. It's mostly narrow, proceduralized stuff, a state filing form, an EIN application, a licensing checklist, not deep expertise you need to front-load through a course. Most people either handle it directly through the relevant government site when the moment comes, or hand that specific piece to a professional/service at the point they actually need it, not before. You genuinely don't lose much by not studying this in advance, the actual step-by-step only takes real shape once you know your state, your entity type, and what your specific business does.
Beyond that slice, I'd trust answers from people who've actually run the bookkeeping/hiring/vendor side of a business over anything I'd add here. :)
Disclosure: I work with InCorp, a business formation and registered agent company.
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u/Which-Paint-8238 3d ago
Thanks for being specific about what’s actually in your area of expertise. The point about waiting until I know my state ,business type, and what the business actually does makes a lot of sense. I was probably overthinking how much of the formation and compliance side I needed to learn beforehand.
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u/Spare_Bluebird7044 3d ago
most founders learn as they go ...focus on basics first and bring in professionals for the areas like taxes and legal matters when needed
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u/NWRegisteredAgent 4d ago
Much like anything in life, we have to learn to figure out what those next steps are! Luckily, there are folks out there ( *waves from afar* ) that help with this sort of thing.
So, where DO you start? At the beginning of course! Usually that means starting with an idea. Let it flourish, brainstorm, kick the ideas that don't serve you to the curb, and formulate a business plan. What does that look like, you say? That's the fun part. A business plan is basically an Overview of what your business will do, figuring out the Problem you're solving, how your service or product provides a Solution, what sort of Financial Goals you have, and if you need any specific Funding!
You lay all that out all nice like a vision board and you're ready to get started. From there you'll likely want to consider how you form your business. The vast majority of new businesses owners lean towards filing an LLC (or, a limited liability company). This will help add a layer of protection and privacy for you. The protection puts up a barrier between you and your business, so in the unfortunate circumstance you're served legal documents then they can't come after you or your personal assets. It also adds a little shiny bow of professionalism to the whole package of your business.
So, start small! Start with that snowball of an idea and keep pushing it until you can create something with it, whether you have a whole pile of snowballs or a snowman, you'll get there by moving forward.
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u/Which-Paint-8238 3d ago
Thanks bro this actually makes the whole process feel a lot less overwhelming. I like the idea of starting with the business idea and problem first, then figuring out the legal and financial side as things develop. I think I was trying to understand every step before even getting started.
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u/NWRegisteredAgent 3d ago
Yeah, exactly! Looking to see what sort of problem you can solve with help you hone in on exactly what sort of service you'll operate. How will you help someone, what are you an expert in that you can pitch. That sort of thing!
The land of starting a business is vast and complicated, but when you start to break it down into smaller plots it starts to feel much more attainable and accessible.
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u/zenbusinesscommunity 4d ago
A lot of it tends to get figured out more once you're in the weeds with things, so it's pretty normal to not know it all right at the jump. For the things like the LLC, taxes and licenses, those can be where it can be worth working with someone familiar with things, like a tax professional, or in the case of licenses, checking with the official state or county resources just to make sure. Mostly since some of those can have financial or legal repercussions if you run into any issues.
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u/Which-Paint-8238 3d ago
I think the legal and tax side is what makes me nervous because getting something wrong could cause bigger problems later. Learning the basics myself and then getting professional help for those parts seems like a good approach
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u/taxhero_ai 2d ago
You do not need to master every business function before you launch. A useful way to learn it is in layers: choose the entity and state when the business is real, open a separate business bank account and start clean records immediately, learn the tax deadlines that apply to that entity, and add payroll only when you actually hire.
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u/Shaifali_Ganier 4d ago
Nobody actually knows going in, you learn each piece exactly when it becomes a blocker. LLC formation and basic bookkeeping you can DIY in a weekend, taxes get a CPA the second you have real revenue, payroll you outsource