diff --git a/README.md b/README.md
index 0f7bbb2..0a4daa3 100644
--- a/README.md
+++ b/README.md
@@ -1,3 +1,14 @@
-# shopping-list-api
+# Shopping List API
 
-Simple internal API to track shopping list items using SQLite and FastAPI
\ No newline at end of file
+A simple internal API to track shopping list items using SQLite and FastAPI.
+
+## Setup
+
+```bash
+pip install -r requirements.txt
+uvicorn main:app --reload
+```
+
+## API
+
+Endpoints will be documented after implementation.
diff --git a/main.py b/main.py
new file mode 100644
index 0000000..13966f0
--- /dev/null
+++ b/main.py
@@ -0,0 +1,59 @@
+from fastapi import FastAPI, HTTPException
+from pydantic import BaseModel
+import sqlite3
+from datetime import datetime
+
+app = FastAPI()
+
+DB_PATH = "shopping.db"
+
+def init_db():
+    conn = sqlite3.connect(DB_PATH)
+    c = conn.cursor()
+    c.execute("""
+        CREATE TABLE IF NOT EXISTS products (
+            id INTEGER PRIMARY KEY AUTOINCREMENT,
+            name TEXT NOT NULL UNIQUE,
+            sku TEXT,
+            created_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP
+        )
+    """)
+    c.execute("""
+        CREATE TABLE IF NOT EXISTS lists (
+            id INTEGER PRIMARY KEY AUTOINCREMENT,
+            name TEXT NOT NULL,
+            created_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP
+        )
+    """)
+    c.execute("""
+        CREATE TABLE IF NOT EXISTS list_items (
+            id INTEGER PRIMARY KEY AUTOINCREMENT,
+            list_id INTEGER NOT NULL,
+            product_id INTEGER NOT NULL,
+            quantity INTEGER NOT NULL DEFAULT 1,
+            added_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
+            FOREIGN KEY (list_id) REFERENCES lists(id) ON DELETE CASCADE,
+            FOREIGN KEY (product_id) REFERENCES products(id)
+        )
+    """)
+    conn.commit()
+    conn.close()
+
+@app.on_event("startup")
+def startup():
+    init_db()
+
+class Product(BaseModel):
+    name: str
+    sku: str | None = None
+
+class List(BaseModel):
+    name: str
+
+class ListItem(BaseModel):
+    product_id: int
+    quantity: int = 1
+
+@app.get("/")
+def read_root():
+    return {"message": "Shopping List API"}
diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 0000000..0a4249c
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,4 @@
+fastapi
+uvicorn
+sqlalchemy
+pydantic