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How to Register a Business: A Step-by-Step Guide

ByPatrick Rooney

Starting a business is exciting, but let’s be real, the paperwork and registration process can feel overwhelming. Don’t worry. Once you break it down into steps, registering your business is a lot more straightforward than it seems. This guide will walk you through the process, highlight what you need to prepare, and show you how our Legal Entity Tool can simplify one of the trickiest parts: choosing the right business structure and finding your state’s registration website.

Why Register Your Business?

You might wonder, why bother registering in the first place? Here are a few big reasons:

  • Legitimacy: Customers, banks, and partners take you more seriously.
  • Protection: Certain structures (like an LLC) protect your personal assets.
  • Taxes: You’ll need to register to get an EIN (Employer Identification Number) and pay the right taxes.
  • Access: Registration opens doors to business bank accounts, loans, and contracts.

Step 1: Choose Your Business Structure

Your business structure determines how you pay taxes, your level of personal liability, and even how much paperwork you’ll deal with. Common options include:

  • Sole Proprietorship: simplest, but no liability protection.
  • LLC (Limited Liability Company): flexible, protects personal assets.
  • Corporation (C-Corp, S-Corp): good for raising money but more complex.
  • Partnerships: for businesses with two or more owners.

Not sure which is right for you? Use our Legal Entity Tool. It asks a few quick questions about your business goals, then narrows down the best structures for you. Even better, it provides direct links to your state’s official registration site, saving you time (and lots of Google searches).

Step 2: Select a Business Name

Your name is how customers will remember you but it also has to meet state requirements.

  • Check availability: Use your state’s business name search to see if it’s taken.
  • Think long-term: Choose something that grows with you.
  • Consider a D.B.A. : D.B.A. stands for “Doing Business As.” For example, if your official business is “Smith Consulting LLC,” but you want to operate as “Bright Path Coaching,” you’d register a D.B.A. It’s basically a trade name that keeps things flexible.

Step 3: Get Your EIN (Employer Identification Number)

An EIN is like a Social Security Number for your business. You’ll need it for taxes, hiring employees, and opening a business bank account. Even if you’re a solo business owner, many banks require an EIN before they’ll let you open an account.

The good news? It’s free and quick to get.
Apply online directly through the IRS EIN application page.

  • You’ll answer a short series of questions.
  • You get your EIN instantly after finishing.
  • Keep the confirmation letter (banks and licensing offices will ask for it).

Step 4: Register with the State

This is where you make it official. Every state has its own process (usually through the Secretary of State’s website). You’ll:

  1. Fill out the registration form.
  2. Pay a filing fee (varies by state and structure).
  3. Get confirmation your business is active.

Our Legal Entity Tool gives you a link to your state’s registration page.

Step 5: Handle Licenses, Permits, and Taxes

Depending on your industry, you may need extra approvals:

  • Sales tax permit if you’re selling products.
  • Health or safety permits for food, childcare, or regulated industries.
  • Professional licenses (for accountants, contractors, etc.).

And don’t forget:

  • Register for state and local taxes.
  • Open a dedicated business bank account (keeps finances clean and professional).

Business bank accounts typically require a registered business and EIN

Step 6: Post-Registration To-Dos

Congratulations, you’re official! A few things to keep on your radar after registering:

  • Annual reports/renewals: Many states require these.
  • Ongoing compliance: Stay in good standing with your state and the IRS.
  • Keep licenses updated: Renew as needed.

Quick Checklist

1. Before You Register

  • Decide on business structure (use the Legal Entity Tool)
  • Pick your business name & check availability
  • Decide if you need a D.B.A.

2. Key Registrations

  • Apply for an EIN via IRS.gov
  • Register with your state (link from Legal Entity Tool)

3. After Registration

  • Apply for any required licenses/permits
  • Open a business bank account
  • Stay compliant (annual reports, tax filings)

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Frequently Asked Questions

1. Which business structure is best for a small side hustle versus a full-time business?
For small side hustles, a sole proprietorship is usually the easiest and cheapest option. It keeps things simple while you test your idea. As your business grows, or if you want liability protection, an LLC or other formal structure can be a smarter choice for full-time operations.
2. How do I know if my business name is available and legally safe to use?
Start by checking your state’s business name registry and searching for existing trademarks. You can also secure a domain name to protect your online presence. Picking a name that’s unique and compliant avoids legal issues later. Our Legal Entity Tool can guide you through this process and point you to your state’s official resources.
3. Is getting an EIN required for solo entrepreneurs who don’t hire employees?
Even if you’re a solo entrepreneur, getting an Employer Identification Number (EIN) is highly recommended. Some banks require it to open a business account, and it makes filing taxes easier. It’s free and quick to obtain online through the IRS (or your local equivalent if outside the U.S.).
4. How can the Legal Entity Tool simplify the registration process for me?
The Legal Entity Tool takes the guesswork out of registration. It asks a few quick questions about your goals, then recommends the best business structures and provides direct links to your state’s registration forms. You save time, reduce errors, and can confidently move forward without hunting through multiple government websites.
5. Do I need licenses or permits even if I’m just starting a small online business?
It depends on what you sell and where you operate. Some industries, like food, coaching, or professional services, require special permits or licenses. Even small online businesses may need a sales tax permit. Always check your local and state requirements to stay compliant from day one.
6. Can I change my business structure later if my business grows?
Yes! Many businesses start as a sole proprietorship or simple LLC and later convert to an LLC, corporation, or different structure as they scale. Planning ahead helps, but it’s comforting to know you’re not locked in; your business can evolve with your goals.