From business idea to government contractor

Products / supplier

Choose a product category, reliable distributors and delivery area. Obtain written pricing, availability, freight terms, warranty terms and any required reseller authorization.

Services / training / IT

Define deliverables, skills, staffing and the evidence that you can do the work.

Construction / trades

Identify licensed supervision, permits, bonding capacity, equipment and jobsite labor needs.

Output: one clear offering and target buyer.^{4, 12, 13}

Sole proprietor

Simpler structure; owner and business are not separate legal persons.

LLC / corporation

File formation documents with the state; keep governing documents and ownership records. Legal structure and federal tax treatment are separate choices.

Using another business name?

Register a DBA/fictitious name where required. A DBA does not create a separate LLC.

Operating in another state?

Check foreign qualification rules.

Your state's business registration ↑

Output: consistent legal name, address, ownership and formation records.^{4, 5}

EIN = federal tax ID

For a new LLC or corporation, form the entity first, then apply directly through the IRS. Save the EIN confirmation. The IRS application is free.

Application options

Online if eligible; otherwise use the IRS instructions for Form SS-4 and the applicable fax, mail or phone route.

Financial setup

Open a separate business bank account, establish bookkeeping and prepare the correct W-9 for the tax classification.

Output: EIN record, banking details and a way to track revenue, expenses and taxes.^{6, 7}

Every business

Determine income tax filing obligations and whether estimated payments apply. An EIN alone does not satisfy ongoing tax duties.

Hiring employees?

Set up payroll, federal withholding and employment tax reporting; complete required hiring documents.

Special tax treatment?

Review whether a separate election is appropriate and meet its filing deadline. An LLC does not automatically mean S corporation taxation.

Output: a tax calendar and applicable federal filing/payment accounts.⁷

Your state tax agency

Register for applicable sales/use, withholding, income/franchise and other business taxes. Address state unemployment registration if hiring.

Selling products?

Determine sales/use tax and resale documentation requirements. Government tax exemptions depend on the purchaser, transaction and documentation.

Other locations?

Check each relevant state and locality for tax nexus, registration and local taxes.

Your state's tax and unemployment offices ↑

Output: required account numbers and permits, or a documented determination that an account does not apply.^{8, 9}

Local location

Check city/county business licensing, zoning, home occupation and occupancy requirements.

Work category

Check trade and professional licenses, contractor registration, job permits, or regulated product/activity approvals. Federal licenses apply to federally regulated activities.

Employees / contract risks

Assess workers' compensation, liability, auto, professional/cyber coverage, and bid/performance/payment bonds as applicable.

Your state's licensing office ↑

Output: required licenses, permits and coverage for the work and performance location.^{5, 9, 13}

NAICS, not "NACS"

North American Industry Classification System codes describe business activities. Search Census descriptions; list the primary activity and additional activities you can support.

How to obtain them

Select applicable codes; there is no universal paid NAICS license to buy.

Related code systems

PSC describes federal products/services. State/local buyers may use NIGP, UNSPSC or other commodity codes.

Small-business status

Check the SBA size standard for the solicitation's NAICS, including affiliates. A code alone does not certify eligibility.

Output: primary and additional codes, plus a size assessment.^{10, 11}

Create an account

Use Login.gov to access SAM.gov. Gather legal name, physical address, formation evidence and requested validation documents.

Option A: full registration

For federal prime contracting, pursue the contracting / All Awards registration. UEI is assigned in the process.

Option B: UEI only

May suit some subaward/reporting needs. A UEI by itself is not an active federal prime registration.

DUNS?

Replaced for federal awards on April 4, 2022. Get one only if a private customer, credit purpose or another program requires it.

Output: a validated entity and UEI.^{1, 3}

Complete the record

Provide requested tax, EFT/bank, ownership, code, contact, and representations/certifications information accurately.

U.S. business CAGE

If none exists, a CAGE is normally assigned through SAM processing by DLA. Answer validation requests promptly.

Outside the U.S.?

Follow the NCAGE route before completing SAM, as applicable.

Verify active status

A submitted record or UEI alone is insufficient. Renew SAM every 365 days; maintain it during performance and through final payment. SAM/UEI and government CAGE issuance are free.

Output: an active SAM registration with a CAGE code.^{1, 2, 14}

You contract with the agency

Complete the federal registration route in steps 6–8. Search SAM.gov Contract Opportunities, agency forecasts and agency small business offices.

Open competition

Bid opportunities you can meet without a special socioeconomic certification.

Small-business set-aside

Meet the applicable size and other eligibility rules.

Program set-asides

Consider WOSB/EDWOSB, HUBZone, 8(a) or veteran programs only if eligible and appropriately certified. A GSA Schedule is a separate contracting vehicle, not required for all federal sales.

^{11, 12, 15}

You contract with a prime

Find primes that buy your product or skill. Register in their supplier portals and request their onboarding requirements.

Identity requirements vary

A prime may require UEI, CAGE, active SAM, tax forms, insurance or compliance evidence. Full SAM is not automatically required for every subcontract.

Clarify the agreement

Confirm scope, pricing, delivery, acceptance, payment terms, flow-down clauses, and who handles installation or site access.

Output: an approved supplier profile and a written purchase order or subcontract before starting work.^{1, 12, 16}

Separate vendor registrations

Register with the state, city/county, school district, university or public authority you want to sell to.

Find the right portal

Start at the buyer's official procurement website. Complete its supplier registration and confirm how bids are submitted.

Buyer-specific options

Select commodity categories and bid alerts; check local MBE/WBE, DBE or other supplier programs where offered.

Do not assume reciprocity

A federal certification, SAM profile or another city's registration may not satisfy this buyer.

Your state's procurement portal ↑

Output: an approved vendor record and bid access for each target buyer.¹⁷

Marketing evidence

Create a concise capability statement with core services/products, relevant experience, contact details, codes, and verified identifiers/certifications.

Execution plan

Document personnel, subcontractors, supplier commitments, shipping, installation and site-access responsibilities.

Cash-flow choices

Use available cash, negotiated supplier credit or suitable financing. Compare upfront supplier payment with expected government payment timing.

Go/no-go: can you fund costs through delivery, acceptance and payment without relying on an unapproved advance?^{12, 13}

Screen the opportunity

Confirm deadline/time zone, eligibility, specifications, delivery location, quantities and required documents.

Price the complete job

Include labor/product costs, freight, installation, insurance, taxes as applicable, overhead, financing, contingency and profit.

Supplier fork

For resold products, verify manufacturer, country of origin, authorization, substitutions, and any applicable nonmanufacturer rule or waiver.

Submit correctly

Follow the stated portal/email method, acknowledge amendments and retain submission evidence.

Find bids: the QBH Contracts bid board lists open, verified opportunities.^{12, 13}

Award gate

Confirm the authorized award/order and all terms. Resolve scope changes with the contracting officer or authorized prime contact.

Deliver + document

Track milestones, shipping, inspection, acceptance and subcontractor performance.

Invoice route

Use the system and routing in the contract. For DoD, this may include PIEE/WAWF after the applicable account/role setup.

Renew + improve

Maintain SAM, taxes, licenses, insurance and required records. Capture past performance, actual costs and lessons for the next bid.

^{13, 14}