How to start an IT business in the US


Starting an IT business in the United States can be an exciting prospect, but it’s also a bit daunting. In this guide, we’ll walk you through each step of starting your own IT company. We start with researching your market and setting up your company, then move on to such topics as securing funding and acquiring wholesale suppliers. Finally we cover topics such as marketing your business, applying for loans and lines of credit, and hiring employees if needed. By completing all these steps in sequence (and doing plenty of reading), you’ll be ready to launch your new software development or engineering consulting firm in no time!

Decide if IT is Right for you

Before starting an IT business, you need to consider whether it’s the right path for you. For example, do you have what it takes to run a business? Are there any benefits or drawbacks of starting an IT business that I should know about?

There are many types of IT businesses. Some examples include:

  • Hardware resellers
  • Software developers and resellers
  • Managed service providers (MSPs)

Secure Funding

The first step to starting an IT business is to secure funding. You will need sufficient cash on hand to cover your initial operating expenses, including rent, utilities and equipment purchases. If you are starting a business with a partner or two, you will also need to decide how much each person will contribute towards the initial investment.

Write a Business Plan

The next step is to write a business plan. A good plan will help you think through the details of starting your business and may help you get funding for it, if that’s something you need. A well-written business plan contains:

  • An executive summary that summarizes what your company does and why it’s different from others in its industry.
  • A mission statement that describes what your company is all about, such as providing IT services or selling computers.
  • An overview of the market for your product or service—how large is it? How does it differ from other markets? What are current trends in this area?

Register your Company

You can register your company in any state, but it is recommended that you choose one that has lower fees and minimum requirements. If you are looking for a more affordable option, consider registering in Delaware or Wyoming. The process of registering your business with the state is straightforward—you will need to submit an application form and pay the applicable fee. Once you have done so, your company will be officially recognized as a legal entity within that state.

Complete Applicable Tax Forms

As a business owner, you are responsible for paying taxes on the income your business earns. You also need to pay taxes on your employees’ wages and any other compensation they receive from working for your company. Finally, there are several types of taxes that apply specifically to businesses:

  • Businesses must pay property tax on their buildings, equipment and other physical assets.
  • They can deduct some expenses from their gross sales revenue before calculating their taxable income (see “Taxable versus non-taxable income”).
  • Many states impose an unemployment insurance tax that is typically paid through payroll withholding by employers (see below).

Open a Business Checking Account

A business credit card is more than just a way to track expenses. It’s also a valuable tool for growing your business and building your credibility as an entrepreneur. Business credit cards are designed specifically to help you manage cash flow, get low interest rates, and earn rewards points that can be applied toward future purchases.

A line of credit is another option for gaining access to capital if you don’t have enough money in the bank or don’t want to use your personal funds for daily operations. This type of loan allows you to borrow as much as you need at competitive rates, which can be paid back over time with interest payments included on every monthly statement (just like with a personal loan).

Market your Business

Marketing is the most important part of any business. You need to let people know about your IT business and why they should use it. There are many ways to do this; some are better than others, depending on what your goals are and how much time and money you want to spend.

  • Social media
  • Email marketing campaigns
  • Blogs, videos, webinars and podcasts


Starting an IT business can seem overwhelming, but you can make it less so by taking it one step at a time and doing your research in advance.

Start small, the first thing you need to do is identify what type of IT business you want to run. Do you want to focus on software development, or would you rather work with hardware? Are you more interested in working for big companies or small businesses? Once you’ve figured out what field interests you the most, start researching ways to get started within that sector.


The rewards of starting your own IT business are tremendous. You can be your own boss and set the schedule to suit your needs, while still earning a living wage. You’ll also have the satisfaction of knowing that you’re doing something that’s important for both your community and our economy as a whole—helping businesses succeed in today’s constantly evolving digital landscape. So if you think IT is right for you, don’t hesitate! Get started today by following these steps.

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