How to Register a Business: Step-by-Step Guide for Every Structure

Step 1: Choose a Business Structure

The first decision is your business structure. Each has different liability protection, tax treatment, and compliance burden. The most common choices for small businesses:

• Sole proprietorship — simplest, no state filing, unlimited personal liability
• Partnership / LLP — for businesses with multiple owners; partnership is simple but exposes all partners to liability, LLP shields partners from each other's malpractice
• LLC — limited liability, pass-through taxation by default, moderate compliance burden
• S-corporation — pass-through taxation with the corporate liability shield; limited to 100 shareholders, one class of stock, U.S. citizens/residents
• C-corporation — separate taxable entity; required for VC-backed startups and businesses that plan to go public

Step 2: Choose and Register a Business Name

1. Pick a name that is available Search the state's Secretary of State business name database, the USPTO trademark database (TM TESS), and the domain name registry. The name must be distinguishable from existing entities and cannot be confusingly similar to a registered trademark.
2. Consider trademark registration Federal trademark registration is not required to operate, but it gives you nationwide priority from the filing date and the right to use ®. State trademark registration is cheaper and faster but limited to your state.
3. Reserve the name if needed Most states allow you to reserve a name for 30 to 120 days before you file formation documents. Useful if you need time to prepare articles of organization or incorporation.
4. Register a DBA if using a trade name If you operate under any name other than your legal entity name (e.g., "John Smith" doing business as "Smith Consulting"), you must register a DBA ("doing business as") with your state or county.
5. Buy the matching domain name Even if you are not building a website yet, secure the .com domain (and any relevant alternative TLDs) to prevent competitors or squatters from grabbing them.

Step 3: File Formation Documents and Obtain an EIN

• LLC — File articles of organization with your state's Secretary of State ($50–$500 filing fee). Obtain an EIN from the IRS at irs.gov/SSB.
• Corporation — File articles of incorporation with your state's Secretary of State ($50–$300 filing fee). Adopt bylaws. Hold an organizational meeting. Obtain an EIN.
• Sole proprietorship / partnership — No state filing required. Obtain an EIN if you have employees or want to use one for banking. File a DBA if operating under a trade name.
• Foreign LLC / corporation — If you formed in one state and operate in another, file foreign qualification in the operating state(s). Annual report and franchise tax may apply in both states.

Step 4: Obtain Required Licenses and Permits

• General business license — most cities and counties require a general business license regardless of industry. Check your local municipality's website
• Professional licenses — regulated professions (law, medicine, accounting, real estate, contracting, food service) require state-issued professional licenses
• Sales tax permit — required if selling taxable goods or services; register with your state's department of revenue
• Federal licenses — businesses in federally regulated industries (alcohol, firearms, agriculture, transportation, broadcasting) require federal permits
• Zoning approval — home-based businesses may face local zoning restrictions; commercial locations typically need zoning approval
• Signage permits — many municipalities require permits for business signage

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