Launching a small business is exciting, but it can also become overwhelming if you’re not sure where to start. From deciding whether to register as an S Corp or LLC to managing cash flow and finding the right talent, the early stages of starting a business might take some figuring out.
But having the right payroll and HR platform can help make it easier to focus on why you started your business in the first place. Platforms like ADP offer tools designed to support and help small business owners overcome potential hurdles.
Here are eight common challenges new business owners face and how to avoid them.
1. Obtaining an Employer Identification Number
One of the first steps in starting a small business is getting an Employer Identification Number (EIN). This number is used for taxes and is often required when opening a business bank account.
If you’re not sure how to apply or don’t have time to handle the setup, RUN Powered by ADP® (RUN), a payroll and HR platform, offers an EIN registration service that takes care of the process for you for a fee. With ADP handling the registration, you can spend more time growing your business and setting it up for success.
2. Setting Up a Simple Payroll Process
Getting payroll in place early can help you stay organized, even before you have a large team. Some small business owners wait until they hire employees, but setting up payroll sooner can help make tax withholdings, calculations and managing compliance easier later on.
RUN can help streamline the payroll process with built-in tools, including AI-supported error detection that helps catch common payroll errors, and RUN & Done®, a feature that automates regular pay cycles.
You can also process payroll right from the RUN mobile app when you’re on the go. One ADP customer shares how that flexibility helps in real life: “The number of times I’ve gotten a reminder to run payroll from the ADP app while I’m at a basketball game—and then run it right there from my phone during a timeout—is a testament to how easy and user-friendly everything [in the RUN mobile app] is,” shared Anthony Laria, co-founder and COO of Laria Enterprises, LCC.1
This type of flexibility can help keep your payroll efficient and make it easier to grow when you expand your team.
3. Hiring Your First Employee
When you’re starting out, hiring might not be your top priority. But as your business grows, you may find that you need extra help. From recruiting the right talent to managing onboarding and staying on top of labor laws, HR tasks can take up more time than you initially expected.
Slow hiring processes and complicated paperwork can also lead to lost opportunities and frustration. About 32% of small business owners reported having job openings they couldn’t fill, according to the NFIB Small Business Economic Trends report for August 2025.2
That’s where a platform like RUN can come in to help make HR tasks easier with tools that simplify hiring and onboarding. With just a few clicks, you can add new employees, set up direct deposit and handle tax forms.
ADP also offers access to ZipRecruiter®, giving you the option to post jobs across more than 100 job boards and social media platforms to reach more candidates. With helpful HR toolkits and essential compliance forms available in one place, you can spend less time grappling with regulations and paperwork and more time finding the right talent for your business.
4. Understanding Tax Obligations
Understanding and managing taxes is a key part of running a business, but it can get complicated quickly. Tax laws change and staying compliant takes time and focus. Mistakes in tax filings or calculations can lead to costly penalties that small businesses often can’t afford. This is why it helps to have reliable support in place.
RUN can help take the stress out of payroll tax management by handling calculations, deposits and tax filings for you. ADP also helps you reconcile payroll taxes, while providing you with the support you need to answer questions from tax agencies. It also helps keep you updated on changes in tax laws that may affect your business.
Another ADP customer, Therise Edwards, founder and CEO of Teshley Solutions, LLC, shares her experience using RUN for tax purposes: “Everything is taken care of within ADP. They deduct and pay the proper federal and state taxes as well as produce the Form W-2. It all happens automatically.”1
5. Connecting All Your Tools and Systems
As a small business owner, you likely use various tools to help you manage daily operations. But when those tools aren’t in place or don’t work well together, it can potentially lead to duplicate entries, errors and time-consuming manual processes that distract you from running your business.
Whether you’re using accounting software or a point-of-sale system like Clover, ADP seamlessly integrates with a variety of services. ADP’s General Ledger Interface also lets you easily share payroll information with software, reducing the hassle of manual data entry and freeing up your time to focus on your business.
6. Finding Reliable Resources and Support
Busy seasons can be challenging for small business owners, especially when unexpected challenges surface. But having support you can rely on can make it easier to navigate these situations.
RUN offers support that can help you manage questions about payroll, HR processes or tax management. ADP’s support team can help guide you through complex situations, and its small business resource center gives you access to articles, guides and tools that can empower you to tackle challenges with confidence.
ADP also provides HR toolkits that can help you navigate everyday HR and compliance responsibilities. These toolkits come with step-by-step best practice guidelines, policies and essential forms and documents that can help you manage HR tasks.
7. Creating a Positive Employee Experience
Creating an environment where employees want to show up can help you attract and retain talent. But juggling benefits, payroll and employee information can take time away from what you truly love about running your business.
Through ADP’s licensed affiliates,3 you can offer your team benefits like insurance and retirement plans while giving them the tools they need to manage their own federal tax withholding and personal information through ADP’s Employee Access® feature. The mobile app also lets employees view their pay history and access important details whenever they need.
8. Gaining Value Without Added Costs
Finding payroll and HR solutions that meet your needs without breaking the bank can be a challenge. Unpredictable fees and pricing structures can make budgeting even more difficult.
Recognizing that every small business is unique, ADP offers flexible pricing options, so you only pay for the services that meet your business needs. This approach can help small business owners get more value without paying for features they don’t need. It also allows them to grow at their own pace and adjust services as their business evolves.
Grow Your Small Business With ADP
Finding the right tools and support can make it easier to manage the day-to-day tasks of running a small business. Platforms like RUN are designed to simplify payroll, HR and other tasks so you can focus on growing your business.
With over 900,000 small business clients, ADP offers tools, guidance and support to help you meet your unique business needs, including:
- EIN Registration Service: Easily obtain your EIN without any hassle.
- Simple payroll processing: Pay your employees in minutes using ADP’s online platform or mobile app.
- New hire onboarding: Add new employees with minimal effort.
- Job posting integration: Share job openings on 100+ job boards using ZipRecruiter.
- Automated payroll tax management: Stay compliant with the latest tax updates and get help with tax calculations and filings.
- Smooth integrations: Integrate your platform with popular accounting and business tools.
- 24/7 support: Get help from payroll experts whenever you need it.
- Flexible pricing: Pay only for the services you need as your business grows.
- Mobile employee app: Employees can access their pay information and personal details easily and on the go.
You can get started with three months of free payroll when you sign up for ADP today.4
References and Disclosures
1. Client testimonials are selective samples and don’t imply an endorsement of any product or service. Results may vary based on the participant’s particular situation and other factors.
2. “Small Business Economic Trends,” NFIB, August 2025.
3. All insurance products will be offered and sold only through Automatic Data Processing Insurance Agency, Inc., its licensed agents or its licensed insurance partners; One ADP Blvd. Roseland, NJ 07068. CA license #0D04044. Licensed in 50 states and DC.
4. Three Free Months Offer: In order to receive 3 free months of payroll with RUN Powered by ADP® (RUN), company must complete, sign and submit the sales order by June 26, 2026 and start processing payroll by July 31, 2026 and continue processing for three consecutive months at the originally implemented bundle, payroll frequency, and discounting level. Eligible companies must have 1-49 employees, unless otherwise stated, and use Direct Debit of Fees. The three months of free payroll will be applied to client’s invoice for clients in good standing after the first three months of consecutive processing, so that the free months are applied to months 4, 5 & 6. This offer cannot be combined with any other promotions and is only available to new ADP Clients using RUN in the Continental U.S. This promotion applies to all features of standard payroll processing invoiced on your regular processing cycle and does not include additional non-payroll services; excludes pass through costs, courier and other delivery fees, including off-cycle fees, hardware, or penalty and interest fees.
This offer shall not apply for sales orders signed after June 30, 2026, and may not be combined with any other offers. If failure to begin processing by July 6, 2026, is due exclusively to Client delay in implementation of the payroll processing services, then ADP reserves the right to terminate this promotion. Other exclusions may apply. Quote based on information provided by you and may vary if frequency, employee size, services or other features change.
ADP, the ADP logo, RUN & Done, Employee Access and RUN Powered by ADP and Always Designing For People are registered trademarks of ADP, Inc. and/or its affiliates. All other marks belong to their owner. Copyright © 2025 ADP, Inc. ALL RIGHTS RESERVED.