How to Register a Business in the United States: A Step-by-Step Guide
Starting a business requires navigating several registration requirements to establish your company legally. This guide walks you through the essential steps of registering a business in the United States, from selecting your business structure to obtaining necessary licenses and permits. Following these procedures ensures your business operates within legal parameters and gains access to important benefits like liability protection, tax advantages, and credibility with customers and partners.

by The Collective

Choosing Your Structure and Establishing Your Identity
Select Your Business Structure
Choose between Sole Proprietorship, Partnership, LLC, Corporation (C-Corp or S-Corp), or Nonprofit. Each structure offers different liability protections, tax implications, and operational requirements. LLCs are popular for small businesses due to their flexibility and liability protection, while corporations might be better for businesses seeking external investment.
Name Your Business
Select a unique name not already in use by conducting a search through your state's business registry. If you'll operate under a name different from your legal name, register a "Doing Business As" (DBA) with your county or state office. Ensure your name is memorable, relevant to your industry, and available as a domain name for online presence.
Obtain an EIN
Apply for an Employer Identification Number (EIN) from the IRS at irs.gov. This nine-digit number functions as your business's tax ID and is required for LLCs, corporations, and any business with employees. An EIN is essential for tax filing, opening business bank accounts, and hiring staff. The application process is free and can typically be completed online in minutes.
Your business structure affects everything from daily operations to taxes, while your business name becomes the cornerstone of your brand identity. Take time to research and select options that align with your long-term business goals. Many entrepreneurs consult with business attorneys or accountants during this phase to ensure their choices provide optimal protection and advantages.
Completing Registration and Setting Up Operations
Register with Your State
File the appropriate formation documents with your state's Secretary of State office:
  • For LLCs: Articles of Organization
  • For Corporations: Articles of Incorporation
  • For Nonprofits: Articles of Incorporation with 501(c)(3) provisions
State filing fees typically range from $50 to $500, depending on your location and business structure. Most states offer online filing systems with processing times ranging from immediate approval to several weeks.
Obtain Licenses and Permits
Research and apply for industry-specific licenses and permits required at federal, state, and local levels. These may include:
  • General business license from your city/county
  • Professional licenses for regulated industries
  • Health permits for food-related businesses
  • Sales tax permits for selling goods
  • Zoning permits confirming your location is approved for your type of business
Once your business is registered, open a dedicated business bank account using your EIN and registration documents. Separating personal and business finances is crucial for liability protection and tax purposes. Consider also securing business insurance appropriate for your industry and size. Many banks offer special business checking accounts with features like multiple user access, higher transaction limits, and integration with accounting software.
Ongoing Compliance
Maintain your business's good standing by filing annual reports, renewing licenses, and paying necessary fees. Set calendar reminders for these deadlines to avoid penalties or dissolution.
Tax Obligations
Understand your tax filing requirements at federal, state, and local levels. Different business structures have different tax forms and payment schedules that must be strictly followed.
Employee Requirements
If hiring employees, register with your state's workforce agency, set up workers' compensation insurance, and establish payroll tax procedures.
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