Butler was born on March 20, 1762, in West Pennsboro Township, Pennsylvania.

Butler was commissioned an ensign in the 9th Pennsylvania Regiment on July 1, 1778, at the age of 16.

He was again transferred to the 3rd Pennsylvania Regiment on January 1, 1783, and was discharged on November 3, 1783, when the Continental Army was disbanded.

He was commissioned a captain in the United States Army on March 5, 1792, and transferred to the 4th Sub-Legion on September 4, 1792.

On July 18, 1793, he was appointed Adjutant and Inspector of the United States Army and served until May 13, 1794.