# Your first steps before your first bid > The order to set up a business for government work, with what each step costs and how long it takes. Most steps are free. Last verified October 2026. Page: https://victavio.com/learn/first-steps-before-your-first-bid You do not need to spend much money to get ready for government work. Most of the steps below are free. Do them in this order, because each one feeds the next. ## 1. Choose your business structure A sole proprietor can register to sell to the federal government. If you work under your own legal name, you usually do not need to register with your state. An LLC or a corporation is a choice about liability, taxes and banking, not a federal rule. SBA says registering a business with a state usually costs less than $300, depending on the state. Time: the same day to a few weeks. ## 2. Get an EIN from the IRS An Employer Identification Number (EIN) is your business tax ID. Banks ask for it, and SAM.gov asks for your tax ID. If you are forming an LLC or a corporation, form it with your state first, then apply on irs.gov. Cost: free. Time: minutes online. The IRS never charges for an EIN. A website that charges for one is not the IRS. ## 3. Open a business bank account SAM.gov asks for the bank account where government payments will go. Federal payments arrive by electronic funds transfer. Cost: bank fees vary. Time: a few days. ## 4. Pick your NAICS codes NAICS codes describe your industry. Each notice lists one code, and that code sets the size limit for "small business" on that notice. Pick one main code and a few related ones. See [NAICS codes and size standards](https://victavio.com/learn/naics-codes-and-size-standards). Cost: free. Time: about an hour. ## 5. Register in SAM.gov SAM.gov registration is free. You get a Unique Entity ID (UEI) as part of registration, and a CAGE code is assigned after you submit. Choose "All Awards" so you can bid on contracts. Allow at least 10 business days after you submit for your registration to become active, and renew it every 365 days. See [Register in SAM.gov](https://victavio.com/learn/register-in-sam). ## 6. Complete your SBA Small Business Search profile Contracting officers use SBA's Small Business Search to find small businesses. It replaced the old DSBS. Describe what you do in plain words and keep it current. Cost: free. Time: about an hour. ## 7. Write a one-page capability statement Buyers ask for one when you answer market research or meet them at events. See [Write a one-page capability statement](https://victavio.com/learn/capability-statement). Cost: free if you write it yourself. Time: two to four hours. ## 8. Register with state and local buyers States, cities, counties and school districts keep their own vendor lists. In Texas, state agencies use the Centralized Master Bidders List (CMBL), which costs $70 a year. Local buyers often use their own bid portals, and accounts are usually free. Each portal needs its own account. ## 9. Look at certifications later, if they fit Certifications such as 8(a), HUBZone, women-owned or service-disabled veteran-owned open some set-aside bids. Most first bids need none. SBA's online certification process is free. See [Certifications: doors, not contracts](https://victavio.com/learn/certifications). ## Get free help APEX Accelerators help businesses with registration and paperwork at no cost, for federal, state and local buyers. Small Business Development Centers also give free advice. ## While you wait SAM.gov takes time. Use it well: - Read open notices in your field to learn how buyers write. - Answer Sources Sought notices. They need no registration and no past performance. - List your best past projects and the people who will vouch for them. ## An honest timeline If nothing goes wrong, expect about two to six weeks from forming your business to an active SAM.gov registration. A name or tax ID mismatch adds time. State and local registrations can run at the same time. This is an estimate, not a promise, and no step assures an award. ## Official sources - [SBA: Register your business](https://www.sba.gov/business-guide/launch-your-business/register-your-business) - [IRS: Get an employer identification number](https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number) - [SAM.gov entity registration checklist](https://sam.gov/sites/default/files/2024-11/entity-checklist.pdf) - [U.S. Census Bureau: NAICS](https://www.census.gov/naics/) - [SBA Small Business Search](https://search.certifications.sba.gov/) - [Texas Comptroller: Centralized Master Bidders List](https://comptroller.texas.gov/purchasing/vendor/cmbl/) - [APEX Accelerators](https://www.apexaccelerators.us/) This lesson is general information, not legal advice. Rules change. Check the official source before you act. Victavio is a Kilobytez LLC product. Not a government agency. SAM.gov registration is free.