Ready to Go Legit? What New Consultants Get Wrong About Registering a Business
It’s not just paperwork. It’s your first act of confidence.
For many new freelancers, the most terrifying part of starting a business isn’t finding the first client. It isn’t doing the work.
It’s the paperwork.
It’s the alphabet soup of EINs, LLCs, and W9s. It’s the fear that if you check the wrong box on a government form, the IRS will come knocking on your door. So, we procrastinate. We tell ourselves we’ll “figure out the legal stuff” later.
But in my experience, putting off registration doesn’t make you safer. It just keeps you feeling like an amateur.
Here are the two biggest myths that keep consultants from making it official—and why you should ignore them.
Myth #1: “I don’t need to register until I’m making money.” This is the most common advice I hear, and it is technically true—you can work as a sole proprietor without filing paperwork. But practically? It creates hurdles.
The Truth: Many corporate clients will ask for a W9 or an EIN (Employer Identification Number) before they can process your first payment. If you wait until you have the contract in hand to figure this out, you are scrambling to navigate government websites while you should be celebrating your win. Starting with a formal setup makes that first onboarding process smooth, professional, and confident.
Myth #2: “It’s too expensive and complicated.” We tend to imagine that “starting a business” requires a lawyer, an accountant, and thousands of dollars in fees.
The Truth: In the US, most states allow you to register online in less than an hour, often for $100 or less. You generally don’t need a legal team for a standard consulting setup. You just need a checklist.
The Shift: Why “Going Legit” Matters
Beyond the logistics, registering your business triggers a massive psychological shift.
When you get that EIN and open a business bank account, you stop being a “person who is freelancing on the side” and you become a Business Owner.
You separate your personal money from your business money.
You signal to clients that you take yourself seriously.
You create a container for your ambition.
Stop Googling at Midnight
If you have been putting this off because you are afraid of doing it wrong, I built a guide to walk you through it.
The Consulting Business Registration Guide is a simple, step-by-step walkthrough of exactly how to:
Get your EIN (for free).
Register your business name.
Set up your business banking so you are ready for tax season from day one.
You don’t need to be afraid of the paperwork. You just need a plan.
Want more hands-on support? Take a look at our on-demand Boss Up & Get Registered course that breaks down the registration process.