How to Register a Business in the U.S.

Choose a business structure

Your structure sets your liability, taxes and paperwork. Common choices are sole proprietorship, partnership, LLC and corporation.

A quick comparison:

Taxes differ too. Read choosing a business structure and what an LLC is, then talk with an accountant or attorney before deciding.

Pick and check your name

Search your state's business records and the federal trademark database to confirm your name is available. File a DBA if you will use a name other than your legal one.

Your legal name is the one on your formation documents. Most states require LLC and corporate names to be distinguishable from others on file and to include a designator such as LLC or Inc.

If you operate under a different trade name, you typically need to register a DBA with the state or county. Check domain and social media availability too. See checking business name availability and how to name a small business.

Some states let you reserve a name for a short time before filing.

File with your state

LLCs and corporations register with the Secretary of State or equivalent office by filing formation documents and paying a fee. Sole proprietors and partnerships often skip this step.

Most states accept online filing. You will provide:

• The business name and entity type
• A registered agent with a physical address in the state who accepts legal papers
• The principal business address
• Names of organizers, members or directors, as required

Fees vary by state and change, so check the official state website for the current amount. Some states charge annual report fees or franchise taxes, and a few require publication of notice. Ask about ongoing obligations before you file.

After approval, you receive filed documents. Keep them with your records, since banks and lenders will ask for them.

Write an operating agreement or bylaws

An LLC operating agreement or corporate bylaws set out ownership, decision-making and what happens if an owner leaves. Even single-owner entities benefit from having one.

Some states require a written operating agreement; most do not, but you should have one. It documents ownership percentages, capital contributions, how profits are shared, voting rules, management roles and exit terms.

For multi-owner companies, address how to handle a buyout, death, divorce or deadlock before they occur. An attorney can draft one at reasonable cost. This document supports your liability protection by showing that the company is separate from you. See our guide on how to transfer business ownership for what comes later.

Get an EIN and register for state taxes

Apply for a free federal EIN from the IRS, then register for state income, sales and employer taxes as they apply to you.

An EIN identifies your business for federal tax purposes. You need one for most entities, any business with employees, and to open most business bank accounts. Apply directly on IRS.gov; the IRS does not charge for it. See business tax ID numbers.

Then register with your state revenue department as needed:

• Sales tax permit if you sell taxable goods or services
• Employer withholding and unemployment accounts if you hire
• State income or franchise tax accounts where required

Rules vary by state, so use the state's business portal as your checklist.

Get licenses, permits and insurance

Apply for the city, county, state and industry licenses your activity requires, and buy the insurance your business and contracts demand.

Local business licenses, professional licenses, health permits and zoning approvals depend on what you do and where. Our guide on how to get a business license walks through finding them.

Insurance protects the company and often is required by landlords, clients and lenders. Common policies include general liability, property, workers' comp and professional liability. Learn more in getting business insurance.

Keep a list of renewal dates for every license and report filing.

Open a business bank account and plan for startup costs

A dedicated business account keeps finances clean and supports your liability protection. Build a startup budget before you spend.

Bring your formation documents, EIN, ID and operating agreement to the bank. Use the account for all business income and expenses. See how to open a business bank account.

List your startup costs: filing fees, licenses, insurance, equipment, deposits, website, inventory and working capital. Our startup costs guide helps.

Funding timing: ROI Funder works with businesses that have been operating 6+ months with $20,000+ monthly revenue and 500+ FICO. If you are earlier than that, plan on savings or other startup sources first. Once you have revenue history, working capital can support growth.