Comprehensive directory of essential tools, programs, and resources for small business owners and entrepreneurs to start, grow, and manage successful businesses in the United States.
Small Businesses in USA
99.9% of all US businessesEmployees
45.9% of American workersof US GDP
Economic contributionAverage Startup Cost
First year of operationU.S. Small Business Administration
The nation's premier resource for small business support, offering free counseling, training, and access to $100+ billion in loan guarantees annually.
Free Business Mentorship
Network of 11,000 volunteer business mentors providing free, confidential advice to entrepreneurs across all 50 states.
Business Productivity Suite
Professional email, cloud storage, video conferencing, and collaboration tools designed for small businesses.
The SBA maintains and strengthens the nation's economy by enabling establishment and viability of small businesses. The agency provides the "3 Cs" of capital, contracts, and counseling.
| Structure | Setup Complexity | Liability Protection | Taxation | Best For |
|---|---|---|---|---|
| Sole Proprietorship | Easy (no filing required) | None (personal liability) | Pass-through | Low-risk businesses, testing ideas |
| LLC | Moderate ($50-$800 filing fees) | Strong (separates personal/business) | Flexible (choose tax treatment) | Medium-high risk, protecting assets |
| Partnership | Easy to moderate | Limited or none (depends on type) | Pass-through | Multiple owners, shared management |
| Corporation (C-Corp) | Complex (extensive paperwork) | Strongest protection | Double taxation | Large businesses, seeking investors |
| S-Corporation | Complex (IRS requirements) | Strong protection | Pass-through | Reducing self-employment taxes |
Most Popular for Small Businesses
Enterprise-Grade Solution
| Insurance Type | What It Covers | Who Needs It |
|---|---|---|
| General Liability | Bodily injury, property damage, medical expenses, lawsuits | All businesses with customer/public interaction |
| Property Insurance | Building, equipment, inventory, furnishings from fire, theft, damage | Businesses with physical locations or assets |
| Workers' Compensation | Employee injuries, disabilities, lost wages, medical expenses | Required for businesses with employees (most states) |
| Commercial Auto | Vehicle accidents, bodily injury, property damage | Required for business-owned vehicles |
| Professional Liability (E&O) | Negligence, errors, omissions, malpractice claims | Service providers, consultants, professionals |
| Cyber Liability | Data breaches, cyberattacks, notification costs, credit monitoring | Businesses storing customer data electronically |
| Business Interruption | Lost income during shutdowns from covered events | Businesses dependent on physical location |
| Business Owner's Policy (BOP) | Combines general liability + property + additional coverage | Most common package for small businesses |
44% of traditional small businesses use cloud infrastructure, while 66% of tech-driven small companies leverage cloud services.
75% of small businesses foresee e-commerce playing a significantly larger role in their overall strategy in 2024, making online selling capabilities essential for business growth.
Fully Managed Platform
Pricing: From $39/month
Learn MoreOpen-Source WordPress Plugin
Pricing: Free plugin + hosting (~$45/month recommended)
Learn MoreThe U.S. Small Business Administration defines small businesses based on industry-specific revenue and employee count standards. Generally, businesses are considered small if annual revenue is below $7 million or they have fewer than 500 employees, though this varies by industry. For example, manufacturing businesses can have up to 1,500 employees, while retail businesses have revenue caps of $7-41 million depending on the specific sector.
99.9% of all U.S. businesses are classified as small businesses, representing 34.8 million companies nationwide as of 2024.
Startup costs vary dramatically based on business type and model. On average, small business owners spend approximately $40,000 in their first full year of operation. However, costs can range from as little as $100 for an online business to $750,000+ for a restaurant.
Typical startup cost ranges:
About 43% of small business owners start with less than $10,000. Key expenses include business registration fees, licenses, insurance, equipment, marketing, website, and initial inventory or supplies.
Sole Proprietorship: Easiest to establish with no filing requirements. Best for low-risk businesses and testing ideas, but offers no personal liability protection. You're automatically a sole proprietor when doing business without registering another structure.
LLC (Limited Liability Company): Provides strong liability protection separating personal and business assets. Filing costs range from $50-$800 depending on state. Offers flexible taxation options (can choose to be taxed as sole proprietorship, partnership, or corporation). Best for medium-to-high risk businesses and owners with significant personal assets to protect.
Corporation (C-Corp or S-Corp): Offers strongest liability protection but requires extensive paperwork and record-keeping. C-Corporations face double taxation (corporate profits + shareholder dividends). S-Corporations avoid double taxation but have strict IRS requirements. Best for businesses seeking investors or planning significant growth.
Consult with a business attorney or accountant to determine the best structure for your specific situation based on liability concerns, tax implications, and growth plans.
No, the U.S. Small Business Administration does not provide grants for starting or expanding a for-profit business. SBA grants are reserved for nonprofits, Resource Partners (like SCORE and SBDCs), and educational organizations.
However, the SBA does offer loan guarantee programs that make it easier to obtain financing:
Alternative grant opportunities:
Workers' Compensation Insurance: Required in most states (except Texas) if you have any employees. Covers medical expenses, disability benefits, and lost wages for work-related injuries or illnesses.
Commercial Auto Insurance: Required in every state except New Hampshire for all business-owned vehicles. Covers bodily injury and property damage from vehicle accidents.
Professional Liability Insurance (E&O): Required by some states for specific professions including physicians, attorneys, accountants, real estate agents, and other licensed professionals.
Disability Insurance: Required in some states (CA, HI, NJ, NY, RI, PR) for employees.
Unemployment Insurance: Required at state and federal levels for businesses with employees.
While not legally required, General Liability Insurance and Property Insurance are strongly recommended for most businesses to protect against lawsuits, accidents, and property damage. Many landlords and clients require proof of general liability insurance before signing contracts.
SCORE: The nation's largest network of 11,000 volunteer business mentors providing free, confidential advice across all 50 states. Mentoring sessions are typically one hour and available virtually, by phone, email, or in person. Small businesses receiving 3+ hours of SCORE mentoring report higher revenues and faster growth. Visit SCORE.org to find a mentor near you.
Small Business Development Centers (SBDCs): Provide free confidential business advice, training, and technical assistance covering business planning, marketing, and financial management. SBDCs operate in partnership with the SBA and are typically hosted by universities.
Women's Business Centers (WBCs): A national network of over 100 non-profit educational centers providing training, counseling, and mentoring specifically for women entrepreneurs.
Veterans Business Outreach Centers: Offer business development services specifically for veterans, service members, and military spouses.
All SBA Resource Partner services are completely free with no hidden costs or obligations. Additional free resources include local chambers of commerce, industry associations, and online communities.
The IRS allows deductions for business expenses that are "both ordinary and necessary" - meaning common in your industry and helpful to your business. Common deductible expenses include:
Consult IRS Publication 334 (Tax Guide for Small Business) or work with a qualified tax professional to maximize deductions. Keep detailed records and receipts for all business expenses.
43% of cyberattacks target small businesses, yet only 14% are adequately prepared. Implement these essential security measures:
1. Enable Multi-Factor Authentication (MFA): Using MFA makes your company 99% less likely to be hacked. Enable on all business accounts, especially email and financial systems.
2. Update Software Regularly: Enable automatic updates for operating systems, browsers, applications, and security software. 95% of data breaches are caused by human error, often from unpatched vulnerabilities.
3. Train Employees: Conduct quarterly cybersecurity awareness training covering phishing email detection, safe internet use, password security, and proper file sharing.
4. Back Up Data Weekly: Perform regular backups to cloud storage. Test restoration procedures to ensure backups work when needed.
5. Use Strong Passwords: Require complex passwords and use password managers (LastPass, 1Password, Dashlane) to generate and store secure credentials.
6. Secure Your Network: Encrypt Wi-Fi, hide SSID, use firewall protection, and require VPN for remote workers.
7. Limit Access: Restrict data access to minimum necessary personnel using role-based permissions.
Free resources: CISA Cyber Guidance, SBA Cybersecurity Guide, and the NIST Cybersecurity Framework 2.0.
The best approach is often using both your own website and marketplaces simultaneously, as each offers distinct advantages:
Your Own E-commerce Website (Shopify, WooCommerce):
Online Marketplaces (Amazon, Etsy, eBay):
Recommended strategy: Start selling on marketplaces to generate quick sales and validate demand, while simultaneously building your own e-commerce website for long-term brand development and lower transaction costs. Use marketplace sales to drive traffic to your website through package inserts, social media, and follow-up emails.
The U.S. government is the largest customer in the world, with a goal to award at least 23% of federal contracting dollars to small businesses annually. Government contracts represent tremendous financial opportunities.
Getting Started:
Set-Aside Programs for Specialized Businesses:
Contact your local SBA office or Procurement Technical Assistance Center (PTAC) for free help navigating the government contracting process. Visit the SBA Contracting Guide for detailed information.
Euler Hermes is the world's leading provider of trade credit insurance solutions, also known as accounts receivable insurance. Protect your business from customer non-payment and bad debt.
Last updated on November 24, 2025