How to Register Your Business in the United States
If you are getting ready to start a business, it is worth taking time to understand how registration works. Some businesses can start operating with very little paperwork. Others must be formally registered with the state before they can open their doors.
Registration will not run your business for you, but it does shape how you pay taxes, how protected you are personally, and how easy it is to work with banks, vendors, and investors.
A Practical Guide for Business Registration in the United States
This guide walks you through the basics of registering a business in the United States. You will learn when registration is required, the benefits of doing it, where to register, what information you will need, and a clear set of steps to follow.
This information is general in nature. Laws change, and rules vary by state, so always check the current requirements in your state and speak with a qualified professional if you are unsure.
Do You Have to Register Your Business?
Whether you must register your business depends on your legal structure and where you operate.
Sole proprietorships and general partnerships. In many states, these do not file separate formation documents with the state just to exist. You become a sole proprietor or general partner as soon as you start doing business under your own name.
However, you may still be required to:
- Register a “doing business as” (DBA) name if you operate under a name that is not your legal name.
- Apply for state, county, or city business licenses and permits.
- Register for state and local taxes, such as sales tax or employer withholding, when they apply to you.
LLCs, corporations, and certain partnerships. Limited Liability Companies (LLCs), corporations, and some types of partnerships are usually created by filing formation documents with your state. Until those documents are accepted, the entity does not legally exist.
The exact rules on who must register, and when, vary from state to state. Check the website for your Secretary of State or business registration agency for the details that apply where you plan to operate.
Even if you are not required to register a formal entity, you may still choose to do so to separate business and personal liability, create a stronger brand, or prepare for growth.
Benefits of Registering a Business
Before we get into the step-by-step process, it helps to understand what you gain by registering your business properly.
Opening a Business Bank Account and Separating Finances
To open a business bank account, most banks will ask for documents that show you are a real business. Depending on your structure, they may request your formation documents, business license, DBA registration, or Employer Identification Number (EIN). Sole proprietors may sometimes use a Social Security Number instead of an EIN, but many still choose to get an EIN for privacy and banking purposes.
Having a business bank account helps you keep your personal and business finances separate. It makes it easier to file your business taxes and to track income, expenses, and cash flow.
Acquiring Loans and Investments
Getting a business loan or attracting investors is usually easier when your business is properly registered. Lenders and investors often want proof that they are dealing with a legal entity, not an informal side project. They may ask for your registration documents, tax ID numbers, financial statements, and bank statements before approving funding.
Hiring Employees and Handling Payroll Taxes
If your goal is to hire employees, registration is especially important. Being a registered business makes it easier to withhold and remit payroll taxes, set up workers’ compensation when required, and comply with labor laws in your state.
Once your business is registered and you register for state payroll taxes (when required), your state may issue a state tax identification number or employer account number. This allows you to pay employees and report income and withholding to the state. The exact process and terminology vary by state.
Building Credibility with Customers and Stakeholders
A formally registered business usually appears more stable and credible to customers, suppliers, and partners. It shows that you are serious, that your business can be looked up in public records, and that you are following basic legal requirements. That can make it easier to negotiate with vendors, open trade credit accounts, or sign contracts.
Supporting Business Continuity
When you register a separate legal entity such as an LLC or corporation, the business has a legal identity that is separate from you as an individual. This makes it easier for the business to continue if owners change, new investors join, or you eventually sell or step away from the company.
Helping Protect Your Personal Assets
Registering as an LLC or corporation can provide limited liability protection when the business is properly formed and operated. In many cases, your personal assets are better protected from business debts and claims than they would be as a sole proprietorship.
However, that protection is not absolute. Lenders may still require personal guarantees, and courts can sometimes “pierce the corporate veil” if owners mix personal and business funds or commit fraud. Think of registration and limited liability as one part of a broader risk-management plan, not as a complete shield.
Another advantage of registering your business is name protection within your state. When you register an entity, most states will not allow another business to register with the same or a confusingly similar name. For broader protection across the country, you may also consider registering a federal trademark.
Where Should You Register Your Business?
You can register your business in any state where you operate or conduct business activities. A state is likely to consider that you are doing business there when, for example:
- You have a physical presence such as a store, office, or warehouse.
- You regularly meet customers or clients in person in that state.
- You have employees or contractors working there.
- Your business earns a significant portion of its revenue from that state.
Many small businesses simply register in their home state, especially when most of their operations are local. If your business operates in more than one state, you typically:
- Choose one state as your “home” state and register your entity there.
- Apply for foreign qualification in each additional state where you are doing business.
Foreign qualification tells the state that a business formed elsewhere is operating there. In your home state, the business is considered domestic. In the other states, it is treated as a foreign entity. You usually do not need to register in every state—only in those where you are actually doing business.
Information You May Need When Registering
The exact forms and information you must provide depend on your business structure and your state’s rules. Many states allow online filing; others still require paper forms. Common information includes:
- Legal business name and any DBA or trade name.
- Principal business address and mailing address.
- Type of business structure (for example, LLC, corporation, partnership).
- Names and addresses of owners, members, or directors, depending on the structure.
- Registered agent name and physical street address in the state.
- Number and type of shares (for a corporation).
- Brief description of the business activity.
Choosing a Registered Agent
To register an LLC, corporation, or certain partnerships, you must usually name a registered agent in your state. A registered agent is a person or business you designate to receive legal papers and official notices on behalf of your business. The agent must have a physical street address (not just a P.O. box) in the state where you register.
Your registered agent can be:
- You, if you live in the state.
- A partner or employee in your business.
- Your attorney or another trusted professional.
- A commercial registered agent service company.
How Much Does It Cost to Register a Business?
The cost to register a business varies by state and by structure. Common costs include:
- State filing fees. When you file Articles of Organization for an LLC or Articles of Incorporation for a corporation, your state charges a filing fee. In many states these fees fall somewhere between about $40 and $500, but some states charge more, and fees can change over time.
- Annual report or franchise fees. Some states charge ongoing fees each year to keep your entity in good standing.
- DBA registration fees. If you file a “doing business as” name, there is usually a separate fee at the state, county, or city level.
- Registered agent fees. If you hire a commercial registered agent, there will be an additional annual cost.
Applying for an Employer Identification Number (EIN) with the IRS is free when you apply directly with the IRS.
Because fees change and there are often several components, it is best to check the current fee schedule on your state’s official website before you file.
How to Register a Business as a Non-U.S. Resident
It is possible to register a U.S. business even if you are not a U.S. citizen or green card holder. Many non-resident founders form either:
- A Limited Liability Company (LLC).
- A C corporation.
Non-resident owners generally cannot be shareholders of an S corporation. To qualify for S corporation status, all shareholders must be U.S. citizens or residents for tax purposes.
Forming a company in the United States does not, by itself, give you the right to live or work in the country. If you plan to move to the United States or work for your business while in the U.S., you must meet U.S. immigration requirements and obtain the proper visa or work authorization. Speak with an immigration professional before making decisions based on immigration issues.
If you are a non-resident forming a U.S. business, you will still need:
- A registered agent with a physical address in the state where you form your company.
- An EIN for tax and banking purposes. The application process is slightly different when the responsible party does not have a Social Security Number.
- To understand your U.S. and home-country tax obligations. In many cases, you will need advice from a tax professional familiar with international issues.
Step-by-Step: How to Register a Business in the United States
Once you understand the basics, you can follow a simple process to get your business registered correctly. The exact details will vary by state, but these steps give you a clear roadmap.
1. Confirm Your Business Structure and Registration Requirements
Before you file anything, decide how you want your business to be structured. The five common structures in the United States are sole proprietorship, partnership, corporation, Limited Liability Company (LLC), and cooperatives.
Each structure has different rules for ownership, liability, taxation, and paperwork. Some structures, such as LLCs and corporations, require state-level registration to exist. Others, such as sole proprietorships, are created automatically when you begin operating, but may still need licenses and a DBA.
Take time to learn the pros and cons of each choice. Here is an in-depth guide to choosing a business structure.
2. Decide on a Business Name and Check Availability
Your business name should be clear, memorable, and flexible enough to grow with you. Make a short list of names, then:
- Search your state’s business name database to see if the name is already in use.
- Check domain names and social media handles for availability.
- Search the U.S. Patent and Trademark Office (USPTO) database to see if a similar name or mark is federally protected.
If you plan to operate as a sole proprietorship under a name that is not your legal name, your state or local government may require you to register a DBA. Here is a comprehensive article on how to register a business name.
3. Choose the State Where You Will Register
For many small businesses, the simplest option is to register in the state where you live and primarily operate. If your operations are spread across several states, or you are building an online company with customers nationwide, you may compare filing and ongoing costs, legal environment, and tax rules before choosing.
Whichever state you choose as your home state, remember that you may also need to register as a foreign entity in other states where you are doing business.
4. Appoint a Registered Agent
Choose who will serve as the registered agent in your state of formation. This can be you (if you meet state requirements) or a professional service. Make sure your agent is reliable and available during normal business hours to receive legal and official documents.
5. File Your Formation or Registration Documents
Next, file the required paperwork with your state:
- LLC. Typically file Articles of Organization.
- Corporation. Typically file Articles of Incorporation.
- Partnership or other entities. May require partnership registrations or similar documents, depending on the state.
You can often file online through your state’s official website. In other cases, you will download forms and submit them by mail or in person. Once your filing is accepted and fees are paid, your entity is officially formed.
6. Apply for an Employer Identification Number (EIN)
Most corporations and multi-member LLCs, and any business with employees, will need a federal tax number known as an EIN. This nine-digit number is used by the IRS to identify your business for tax purposes.
You can apply for an EIN directly with the IRS. In many cases, if you apply online and meet the IRS eligibility rules, you will receive the number immediately. Applying by fax or mail takes longer.
Some sole proprietors without employees may not be required to obtain an EIN and can use a Social Security Number for federal tax filing. Even so, many choose to get an EIN to avoid using their personal number on business documents.
7. Register for State and Local Taxes
Depending on your location and activities, you may need to register with your state or local tax agencies for:
- State income tax (where applicable).
- Sales and use tax.
- Employer withholding and unemployment insurance taxes, if you have employees.
Check your state’s official website and your local government’s requirements to understand which tax registrations apply to your business.
8. Apply for Licenses, Permits, and Zoning Approvals
After your business has been registered with your state, you may still need licenses or permits from your city, county, or state before you can legally operate.
Requirements depend on:
- Your location.
- Your industry and activities.
- Whether you operate from home, a storefront, or another type of property.
Check with city hall or your local municipality to find out what applies to you. You want to make sure your business does not violate zoning rules or bylaws.
See How to Get a Business License for more on this topic.
9. Open Your Business Bank Account and Set Up Records
Once your business is registered, you have your EIN, and you have any required licenses, it is a good time to open your business bank account and set up your bookkeeping system.
Keeping your business finances separate from your personal finances helps protect you, makes tax time easier, and gives you a clearer picture of how your business is performing.
Conclusion
Registering your business can feel like a lot of paperwork, but when you break it into clear steps, the process becomes manageable. Decide on your structure, choose a name, select a state, appoint a registered agent, file your formation documents, and obtain the tax IDs and licenses you need.
Remember that rules and costs vary by state and by structure. Use your state’s official resources, and when in doubt, get advice from a lawyer or tax professional. Once registration is out of the way, you can focus your energy where it belongs—building and growing your business.