Getting Started as an MSP in 2025: Your Complete Foundation Guide

Everything you need to know to launch your managed services business successfully

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Published: June 2025

Author: Core MSP Team

Reading Time: 8 minutes

Category: Getting Started

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Starting a Managed Service Provider (MSP) business in 2025 requires more than just technical skills—it demands a strategic approach to building a sustainable, scalable operation. Whether you're transitioning from break-fix IT services or launching your first business venture, this comprehensive guide will walk you through the essential steps to establish a strong foundation.

Legal & Business Foundation: Getting the Basics Right

Essential Business Setup Tasks

Legal Structure

Your choice of business entity will impact taxes, liability, and future growth options:

• LLC: Flexible, pass-through taxation, easier to manage

• S-Corporation: Tax advantages for higher revenue, ability to have employees

• C-Corporation: Best for venture capital funding, stock options

Critical Paperwork Checklist

• [ ] Register your business entity (LLC/Corporation)

• [ ] Obtain Employer Identification Number (EIN)

• [ ] Apply for necessary state and local business licenses

• [ ] Register for sales tax permits where required

• [ ] Set up business banking with dedicated business accounts

• [ ] Implement proper bookkeeping and accounting systems

Insurance: Protecting Your Business

Essential Coverage Types

• Errors & Omissions (E&O): Covers professional mistakes

• Cyber Liability: Critical for data breaches and cyber incidents

• General Liability: Basic business protection

• Workers' Compensation: Required if you have employees

• Business Property: Protects equipment and office space

Pro Tip: Many MSPs start with $1M E&O and $1M cyber liability coverage, scaling up as they grow.

Your First 90 Days Action Plan

Days 1-30: Foundation

• Complete legal business setup

• Secure insurance coverage

• Establish banking and accounting

• Begin certification processes

• Set up basic technology stack

Days 31-60: Preparation

• Finalize vendor relationships

• Develop service offerings and pricing

• Create marketing materials

• Build initial processes and documentation

• Launch website and online presence

Days 61-90: Launch

• Begin prospecting activities

• Network with potential clients

• Onboard first customers

• Refine processes based on experience

• Plan for growth and scaling

[Content continues with comprehensive guides on certifications, market research, vendor relationships, and more...]