Welcome to “Fifty Shades of Business Plan” Pick Your Fighter!
Gather round, startup warriors, TikTok side hustlers and latte fueled visionaries! You are about to embark on a tour of the most arbitrarily baffling landscape in the entrepreneurial universe: business plan requirements by state. Shocking news business plan rules in the USA are like Starbucks menu hacks: no one truly knows what’s going on and if you ask five different people you’ll get five different answers (and maybe an existential crisis thrown in).
You thought “write a business plan” was one size fits all? Please. This is America. Land of the free, home of the brave and proud inventor of 50 unique ways to complicate what should’ve been a Google Doc template.
“Wait I Need a Plan Where?” The State by State Plot Twist
Let’s get the painful truth out of the way most U.S. states don’t technically require you to file a business plan. Gasp! But plot twist they almost all expect you to have one especially if you’re after:
- Loans (banks enjoy plans more than latte art).
- Grants (free money comes with fine print and bullet points).
- Licenses and permits (that one city clerk with the ancient stapler wants to see a plan).
- Attracting partners investors (aka convincing your bestie to not Venmo request you back).
And just because the state’s not asking for your business plan doesn’t mean someone else won’t. Who doesn’t love a pop quiz on your long term vision?
Business Plan tip:
No one’s checking your font choice but they want to know you thought this through longer than the last season of The Bachelor.
“California Dream in’ and Delaware Schemin’” The State Hot Takes
Here’s the punchline: Your business plan requirements by state range from “are you kidding?” to “seriously, just submit something already.”
Let’s name and shame a few state vibes:
- California: Wants everyone to meditate on “purpose” and “mission” but legally? Nah, you just need your filings. The banks and investors demand the business plan, though don’t show up with just a selfie.
- Delaware: Basically America’s business formation party house. No mandated plan, but if you want that sweet, sweet VC money? Write the plan.
- Texas: The state where “bigger is better” applies to barbecue and your business plan if you want funding or local support. Local agencies may want details especially if you’re “disrupting” armadillo breeding.
- New York: The city never sleeps because small business owners are up all night, reformatting their business plans for loan applications required by that one bank down the block.
- Wyoming: No plan needed to file an LLC. But if you want anyone to take you seriously (investors, bored state clerks your aunt Becky) better have a business plan in your back pocket.
Extra! Some states will ask for a business plan as part of special programs like government grants, local “accelerators” or to apply for business incubators. Always read the fine print because nothing says “America” like surprise paperwork.
The Unofficial “List of Business Plan Judges”Spoiler: It’s Not Who You Think
Here’s the dirty secret: In almost every state, the people who actually care about your business plan aren’t state officials. Instead it’s a grim parade of:
- Bank managers making “hmm” sounds over your spreadsheets.
- Grant reviewers who’ve seen so many “disruptive” ideas they want to cry.
- Angel investors who still carry Blackberrys (yes, plural).
- Local licensing offices who believe in plans the way Gen Z believes in fax machines.
Business Plan hack:
When in doubt wave your “business plan” at any official looking person. Sometimes they’ll let you skip the line just to get you out of theirs.
“Plan? What Plan?” Warning: The Perils of Winging It by State
Let’s play “What’s the Worst That Can Happen?”
- Skipped the business plan in Nevada? Your Vegas side hustle gets shut down for “insufficient vision” (or, you know not getting a license because your plan was “party all day”).
- Operated in Illinois with zero plan? Watch banks tell you “no” right to your iced coffee stained face.
- No plan in Florida? Fine but your business mentor group will look at you with Disney level disappointment.
So yeah, most business plan requirements by state are unofficial but emotionally scarring. Your bestie might say “YOLO” but the clerk at City Hall will say Rejected.
How to Survive Because You Weren’t Gonna Read 50 State Websites Anyway
Let’s set you up for less heartbreak and more founding glory:
- Assume someone in your state wants a business plan, especially if “money” or “legal stuff” is involved.
- Local Small Business Development Centers (SBDCs) will always ask for a Business Plan and supply so many downloadable templates you’ll think you unlocked a secret level.
- Investors? Banks? Treat the plan as your “admission ticket.” Sorry no refund for tears.
- Regulators? They want your filing fees, not your bullet points unless grants or specialty licenses are on the table (because why would this be easy?).
TLDR Conclusion: If You Read This You Already Have More Plan Than Most
If you made it here congrats! You are now overprepared (rare in America). No matter your state, treat your Business Plan as the everything bagel of your startup dreams: It goes with everything and everyone secretly hopes you have one.
Go forth caffeinate and conquer armed with a plan, a meme and the sneaking suspicion your state legislature changed the rules last week.