diff --git a/app/__init__.py b/app/__init__.py
new file mode 100644
index 0000000..539ac85
--- /dev/null
+++ b/app/__init__.py
@@ -0,0 +1 @@
+# This makes app a package
\ No newline at end of file
diff --git a/app/api/__init__.py b/app/api/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/db/__init__.py b/app/db/__init__.py
new file mode 100644
index 0000000..8cc3bc6
--- /dev/null
+++ b/app/db/__init__.py
@@ -0,0 +1 @@
+# Database package
\ No newline at end of file
diff --git a/app/db/base.py b/app/db/base.py
new file mode 100644
index 0000000..7c2377a
--- /dev/null
+++ b/app/db/base.py
@@ -0,0 +1,3 @@
+from sqlalchemy.ext.declarative import declarative_base
+
+Base = declarative_base()
\ No newline at end of file
diff --git a/app/db/session.py b/app/db/session.py
new file mode 100644
index 0000000..dc6a1af
--- /dev/null
+++ b/app/db/session.py
@@ -0,0 +1,29 @@
+from pathlib import Path
+from sqlalchemy import create_engine
+from sqlalchemy.orm import sessionmaker
+
+from .base import Base
+
+# Database setup with absolute path as specified in guidelines
+DB_DIR = Path("/app") / "storage" / "db"
+DB_DIR.mkdir(parents=True, exist_ok=True)
+
+SQLALCHEMY_DATABASE_URL = f"sqlite:///{DB_DIR}/db.sqlite"
+
+engine = create_engine(
+    SQLALCHEMY_DATABASE_URL,
+    connect_args={"check_same_thread": False}
+)
+
+SessionLocal = sessionmaker(autocommit=False, autoflush=False, bind=engine)
+
+# Create tables
+Base.metadata.create_all(bind=engine)
+
+# Dependency to get database session
+def get_db():
+    db = SessionLocal()
+    try:
+        yield db
+    finally:
+        db.close()
\ No newline at end of file
diff --git a/app/models/__init__.py b/app/models/__init__.py
new file mode 100644
index 0000000..d8cfe8a
--- /dev/null
+++ b/app/models/__init__.py
@@ -0,0 +1 @@
+# Models package
\ No newline at end of file
diff --git a/app/models/todo.py b/app/models/todo.py
new file mode 100644
index 0000000..054e045
--- /dev/null
+++ b/app/models/todo.py
@@ -0,0 +1,15 @@
+from datetime import datetime
+from sqlalchemy import Column, Integer, String, Text, Boolean, DateTime
+
+from app.db.base import Base
+
+
+class Todo(Base):
+    __tablename__ = "todos"
+
+    id = Column(Integer, primary_key=True, index=True)
+    title = Column(String(255), nullable=False)
+    description = Column(Text, nullable=True)
+    completed = Column(Boolean, default=False, nullable=False)
+    created_at = Column(DateTime, default=datetime.utcnow, nullable=False)
+    updated_at = Column(DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False)
\ No newline at end of file
diff --git a/app/schemas/__init__.py b/app/schemas/__init__.py
new file mode 100644
index 0000000..40587b8
--- /dev/null
+++ b/app/schemas/__init__.py
@@ -0,0 +1 @@
+# Schemas package
\ No newline at end of file
diff --git a/app/schemas/todo.py b/app/schemas/todo.py
new file mode 100644
index 0000000..3065b8f
--- /dev/null
+++ b/app/schemas/todo.py
@@ -0,0 +1,26 @@
+from datetime import datetime
+from typing import Optional
+from pydantic import BaseModel
+
+
+class TodoCreate(BaseModel):
+    title: str
+    description: Optional[str] = None
+
+
+class TodoUpdate(BaseModel):
+    title: Optional[str] = None
+    description: Optional[str] = None
+    completed: Optional[bool] = None
+
+
+class TodoResponse(BaseModel):
+    id: int
+    title: str
+    description: Optional[str] = None
+    completed: bool
+    created_at: datetime
+    updated_at: datetime
+
+    class Config:
+        from_attributes = True
\ No newline at end of file
diff --git a/main.py b/main.py
new file mode 100644
index 0000000..7c19cdf
--- /dev/null
+++ b/main.py
@@ -0,0 +1,43 @@
+from fastapi import FastAPI
+from fastapi.middleware.cors import CORSMiddleware
+
+app = FastAPI(
+    title="Todo App API",
+    description="A simple Todo application API built with FastAPI",
+    version="1.0.0",
+    openapi_url="/openapi.json",
+    docs_url="/docs",
+    redoc_url="/redoc"
+)
+
+# Configure CORS
+app.add_middleware(
+    CORSMiddleware,
+    allow_origins=["*"],
+    allow_credentials=True,
+    allow_methods=["*"],
+    allow_headers=["*"],
+)
+
+
+@app.get("/")
+async def root():
+    """Base endpoint that returns app information"""
+    return {
+        "title": "Todo App API",
+        "description": "A simple Todo application API built with FastAPI",
+        "version": "1.0.0",
+        "documentation": "/docs",
+        "health_check": "/health"
+    }
+
+
+@app.get("/health")
+async def health_check():
+    """Health check endpoint"""
+    return {"status": "healthy", "message": "Todo App API is running"}
+
+
+if __name__ == "__main__":
+    import uvicorn
+    uvicorn.run(app, host="0.0.0.0", port=8000)
\ No newline at end of file
diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 0000000..ea8e47b
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,7 @@
+fastapi==0.104.1
+uvicorn==0.24.0
+sqlalchemy==2.0.23
+alembic==1.13.1
+pydantic==2.5.0
+python-multipart==0.0.6
+ruff==0.1.7
\ No newline at end of file