The Stay-Scrappy Guide to Setting Up Payments, Banking & Invoicing
The Afternoon Business Launch: How to Set Up Your Entire Business Foundation in Just a Few Hours
One of the biggest myths in entrepreneurship is that setting up the legal and financial foundation for your business is complicated, expensive, and time-consuming. This misconception keeps countless would-be business owners stuck in the planning phase, sometimes for months or years.
The truth? You can establish the entire legal and financial backbone of your business in a single afternoon.
Video: Set Up Your Business Legally in ONE AFTERNOON
The 4ish-Hour Business Setup Framework
As Jacob and Parker explain in the video, the core elements of your business infrastructure can be established remarkably quickly:
1. Form Your LLC (1 Hour)
Visit your state's Secretary of State website
Complete the online LLC formation process
Pay the filing fee (typically $50-300 depending on your state)
Download your Articles of Organization/Incorporation and FEIN number
Despite what legal services might suggest, this process is straightforward enough for most entrepreneurs to handle without assistance. The online form typically takes less than 30 minutes to complete, with approval coming either instantly or within a few hours.
2. Open a Business Bank Account (30 min)
With your LLC paperwork in hand:
Visit your local bank (or complete the process online with many national banks)
Bring your Articles of Organization and EIN (Federal Employer Identification Number)
Open a business checking account
Consider opening a separate savings account for taxes (as Jacob recommends in the video)
This critical step creates the all-important separation between your personal and business finances—something that protects you legally while making accounting infinitely simpler.
3. Set Up Your Payment System (1 Hour)
Once your bank account is established:
Sign up for QuickBooks Self-Employed or a similar platform (Xero, Fresh Books, etc)
Connect your new business bank account
Set up your invoice templates
Configure payment options for clients/customers
As Jacob mentions, the most basic version of QuickBooks Self-Employed costs around $15/month and offers tremendous value for new business owners, including invoice creation, payment processing, expense tracking, and even mileage tracking.
4. Create Basic Financial Organization (1 Hour)
Set up folders (physical or digital) for receipts and important documents
Create a simple system for tracking expenses
Establish a practice of moving a percentage of income to your tax savings account
Even Scrappier Options
If you're looking to start even more minimally, Parker and Jacob suggest:
Accept payments through Venmo or PayPal
Track income and expenses in Google Sheets (free)
Gradually upgrade your systems as your business grows
While these ultra-minimal approaches work in the beginning, remember that proper separation of business and personal finances becomes increasingly important as your business grows.
Why This Matters: The True Cost of Procrastination
The cost of delaying these basic setup steps isn't just missed opportunities—it's potentially:
Tax complications and penalties
Personal liability for business obligations
Accounting nightmares when you try to separate transactions months later
Unprofessional appearance to clients when accepting payments
All of these consequences cost far more in time, money, and stress than the few hours it takes to set things up properly from the start.
Beyond the Basics: Growing Your Infrastructure
Once you've established these foundations, you can gradually add more sophisticated elements as your business grows:
Bookkeeping software
CRM systems
Project management tools
Email marketing platforms
E-commerce capabilities
The beauty of the scrappy approach is that you can add these elements as you need them and as your revenue supports them, rather than paying for complex systems before you've even made your first sale.
Take Action Today
The simplicity of this process means there's no excuse for delay. Block off an afternoon this week to establish your business foundation—by dinnertime, you'll have transformed from "someone with a business idea" to a legitimate business owner ready to accept your first payment.
