How to Register a Business in the United States

You're ready to launch. The product works. You have your first customers lined up. Someone asks to pay you.

Then you realize: you don't actually have a legal business yet.

Do you need an LLC? A corporation? Can you just accept the money as a person? What about taxes? What forms do you file, and where?

Business registration sounds intimidating, but it doesn't have to be. Here's the practical roadmap.

Step 1: Choose Your Business Structure

Your business structure affects taxes, liability, and legal requirements. Here are the main options:

Sole Proprietorship

• What it is: You and your business are one legal entity
• Pros: Simplest form, no formal filing required, complete control
• Cons: Personal liability for business debts, harder to raise capital
• Best for: Solo freelancers, consultants, low-risk businesses

Partnership

• What it is: Business with multiple owners sharing profits and responsibilities
• Pros: Shared resources and expertise, relatively simple
• Cons: Personal liability, potential partner disputes
• Best for: Co-founders starting together

Limited Liability Company (LLC)

• What it is: Hybrid structure separating personal and business liability
• Pros: Liability protection, flexible management, tax benefits
• Cons: Requires state filing and fees, annual reports
• Best for: Most small businesses, especially those with any risk exposure

Corporation (C-Corp or S-Corp)

• What it is: Formal entity completely separate from owners
• Pros: Strongest liability protection, easier to raise investment, perpetual existence
• Cons: More complex, higher costs, strict compliance requirements
• Best for: Larger businesses, those seeking venture capital

Step 2: Select and Register Your Business Name

Your business name must be:

• Unique in your state — Check via your state's business search tool
• Compliant with state rules — LLCs must include "LLC" or "Limited Liability Company"
• Available as a domain name — Recommended for online presence

If using a trade name different from your legal name, register a DBA ("Doing Business As") with your state or county.

Example: Legal name is "Smith Consulting LLC" but you want to operate as "Peak Performance Coaching." You'd file a DBA for the trade name.

Step 3: File Formation Documents with the State

This is the official step that creates your business entity:

For LLCs

File Articles of Organization (sometimes called Certificate of Organization) with your state's Secretary of State office.

Required information typically includes:

• LLC name
• Registered agent name and address
• Business purpose (can be generic: "any lawful activity")
• Management structure (member-managed or manager-managed)
• Organizer information

For Corporations

File Articles of Incorporation (sometimes called Certificate of Incorporation).

Required information typically includes:

• Corporation name
• Registered agent
• Number and type of authorized shares
• Incorporator information
• Business purpose

Filing Fees

Fees typically range from $50 to $500+ depending on the state.

State Type	Typical LLC Fee	Notes
Low-cost states	$50-$150	Kentucky, Mississippi, New Mexico
Average states	$100-$300	Most states fall here
High-cost states	$500+	California, Massachusetts
Business-friendly	$90-$300	Delaware, Wyoming, Nevada (popular for formation)

Step 4: Appoint a Registered Agent

Most states require a registered agent - a person or service with a physical address in the state who can receive legal documents and official correspondence on behalf of your business.

Options:

• Yourself — Free, but requires being available at a physical address during business hours
• A friend or colleague — Also free, but puts responsibility on them
• Professional registered agent service — $50-$300/year, provides privacy and reliability

Step 5: Create Internal Governing Documents

For LLCs: Operating Agreement

While not always required to file, an Operating Agreement is highly recommended. It outlines:

• Ownership percentages
• Management structure
• Profit distribution
• Operating procedures
• What happens if someone wants to leave

For Corporations: Bylaws

Bylaws establish rules for:

• Shareholder meetings
• Board of directors structure
• Officer roles and duties
• Corporate procedures

These documents are typically not filed with the state but kept internally.

Step 6: Get an Employer Identification Number (EIN)

Apply for a free EIN from the IRS - it's like a Social Security Number for your business.

Required for:

• Businesses with employees
• Corporations and multi-member LLCs
• Opening business bank accounts
• Filing business tax returns

How to get one: Visit irs.gov and apply online (takes about 15 minutes). Single-member LLCs and sole proprietors without employees can often use the owner's SSN instead, but getting an EIN is still recommended for privacy.

Step 7: Register for State and Local Taxes

Depending on your business type and location, you may need to register for:

• Sales tax permit — If selling taxable goods or services
• Employer taxes — Unemployment insurance, payroll taxes
• Excise taxes — Industry-specific taxes

Check with your state's Department of Revenue or Taxation.

Step 8: Obtain Licenses and Permits

Business licenses and permits vary widely:

Federal Level

Rare, required only for specific industries:

• Alcohol sales
• Firearms
• Agriculture
• Aviation
• Commercial fishing

State Level

Professional licenses for regulated industries:

• Healthcare
• Contractors
• Cosmetology
• Real estate
• Legal services

Local Level

City or county requirements:

• General business license
• Zoning permits
• Health permits (food businesses)
• Signage permits
• Home occupation permits

Check with your city, county, and state to determine what's required for your specific business and location.

Step 9: Open Business Bank Accounts

Separate your business and personal finances by opening dedicated business bank accounts.

What you'll need:

• EIN (or SSN for sole proprietors)
• Articles of Organization/Incorporation
• Operating Agreement or Bylaws
• Business license (if applicable)
• Personal identification

Why this matters: Mixing business and personal finances can pierce your LLC's liability protection and creates accounting nightmares at tax time.

Step 10: Maintain Ongoing Compliance

After formation, businesses must comply with ongoing requirements:

• File annual reports with the state (fees and deadlines vary)
• Pay annual fees and franchise taxes
• Hold required meetings (especially for corporations)
• Renew licenses and permits
• File tax returns (federal and state)

If operating in multiple states, register as a "foreign" entity in each additional state.

Quick Timeline: From Zero to Registered

Step	Estimated Time
Choose business structure	1-2 hours (research)
Check name availability	15 minutes
File formation documents	30 min to file, 1-5 days processing
Get EIN	15 minutes (instant online)
Open business bank account	1-2 hours
Total	1-2 weeks (including processing)

Resources

For official guidance and forms:

• SBA.gov — Small Business Administration resources and guides
• IRS.gov — Tax information and EIN application
• Your State's Secretary of State website — Official forms and filing instructions
• SCORE.org — Free mentoring and business workshops

When to Get Professional Help

Consult with a business attorney and CPA if:

• You have multiple members or complex ownership structures
• You're raising investment capital
• You have intellectual property to protect
• You're operating in multiple states
• You're in a regulated industry
• You're unsure about the best structure for tax purposes

The upfront investment in professional advice can save thousands in mistakes and legal issues down the road.

The Bottom Line

Business registration isn't as scary as it sounds. For most businesses:

1. Choose LLC if you want liability protection, sole proprietorship if you want speed
2. File your formation documents with your state
3. Get an EIN from the IRS
4. Open a business bank account
5. Get required licenses and permits

You can do steps 1-4 in a single afternoon. The hardest part is usually just starting.

Don't let business formation stop you from launching. Get the basics done, then improve as you grow.