How to Register a Business in the US (Six Easy Steps)

Starting a business is an exciting milestone, but the paperwork can feel overwhelming at first. Many new owners are surprised to learn that registering a business is often simpler than it seems. The process ultimately depends on the type of business you’re starting and the structure you choose. 

For example, setting up a corporation with a physical office can involve more time and cost. In contrast, forming an LLC or registering as a sole proprietor for an online business may be completed much faster.

According to the U.S. Small Business Administration (SBA) Office of Advocacy, there are about 33.5 million small businesses in the US as of 2025. If you’re planning to register your own business, the six steps below can help you understand what’s typically required and where the process may differ based on your situation.

Before we continue, download the 12 best tax hacks for business owners.

Step 1: Choose a Business Structure

Choosing a business structure is one of the first major decisions you’ll make when registering a business in the US. The structure you select affects your taxes, personal liability, and administrative requirements.

The four most common business structures are:

✅ Sole Proprietorship
✅ Partnership
✅ Corporation
✅ Limited Liability Company (LLC)

Each structure has its own rules and potential tax treatment. Understanding the basics of each option can help you decide which one may fit your goals.

If you’re wondering which structure will save you the most on taxes, read this guide.

Sole proprietorship

A sole proprietorship is the simplest and most common structure for small businesses. A single individual owns and operates the business, makes all decisions, and assumes all risks. You’re personally responsible for business debts and obligations. In fact, if you start operating without formally setting up a business structure, the IRS generally considers you a sole proprietor by default.

Pros:
✅ Easy to set up and maintain
✅ No separate business tax filing required

Cons:
❌ Personal liability for business debts
❌ Harder to raise capital

Partnerships

A partnership is formed when two or more individuals create a business together. There are two main types:

Pros:

✅ Shared knowledge and resources
✅ Simpler tax filing compared to corporations

Cons:

❌ Personal liability for general partners
❌ Potential for disagreements between partners

Corporations

A corporation is a separate legal entity owned by shareholders. It offers limited liability protection, meaning the corporation is responsible for its debts and obligations. There are two main types:

Pros:
✅ Limited liability for shareholders
✅ Easier to raise capital

Cons:
❌ More complex to set up and maintain
❌ Potential double taxation for C corporations

Limited Liability Company (LLC)

An LLC combines the limited liability of a corporation with the simpler tax filing of a partnership. Owners are called members and can include individuals, other LLCs, or corporations.

Pros:
✅ Limited liability for members
✅ Pass-through taxation — owners typically report income and losses on their personal tax returns

Cons:
❌ More complex than sole proprietorships and partnerships
❌ Some states require annual fees or additional filings

📝 Note: Tax treatment and filing requirements vary by state. It’s often helpful to review IRS guidance or consult a qualified professional before choosing a structure.

📌 Also read: What Are The Different Types Of Business Entities?

Step 2: Register Your Business Name

Your business name is more than just a label. It shapes how customers see your brand and sets you apart from competitors. Choosing and protecting the right name early on can save you time and prevent conflicts later.

Creating a Unique Business Name

A clear and memorable name helps customers recognize and trust your business. Start by:

✅ Brainstorming keywords related to your products, services, and audience
✅ Combining words or phrases to create a name that reflects your brand identity and industry
✅ Checking availability using your state’s business registry database and the US Patent and Trademark Office (USPTO) website

📝 Tip: If you’re struggling to come up with ideas, explore online name generators or curated name libraries for inspiration.

Using a “Doing Business As” (DBA) Name

A DBA name, also called a fictitious name or trade name, lets you operate under a name different from your legal entity name.

✅ Sole proprietorships and partnerships often need a DBA if they use a name other than the owner’s legal name
✅ Registration requirements vary by state or county, so confirm your local process before operating under a DBA

📝 Note: A DBA does not provide legal protection or stop others from using a similar name. It only registers your chosen operating name.

Trademark Protection

Trademarking your business name can add another layer of protection. This step is optional but can be valuable if you plan to grow your brand.

✅ Start by searching the USPTO’s Trademark Electronic Search System (TESS) to ensure your name is unique.
✅ Submit your application with the required documentation and fees to the USPTO.
✅ Understand that approval may take several months, but trademark protection can help secure your brand long term.

📝 Note: Trademark registration is separate from DBA or business entity registration. It provides stronger legal protection, especially if you plan to expand nationally.

Step 3: Get an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the IRS to identify your business for tax purposes. Think of it as a Social Security number for your company. Most businesses need one, especially if you plan to hire employees, open a business bank account, or file certain tax forms.

There are three main ways to apply: online, by fax, or by mail. International applicants can also apply by phone. Applying online is the fastest, while mail applications can take up to four weeks.

Applying Online

This is the quickest and easiest way to get your EIN. You’ll receive it instantly if you meet the eligibility requirements.

Steps:

Requirements for online applications:

✅ A valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
✅ The business must be located in the U.S. or its territories.
✅ Only one EIN can be issued per responsible party per day.

📝 Note: Applying online is free, and you’ll receive your EIN immediately after completing the application.

Applying by Mail

If online application isn’t possible, you can mail Form SS-4 to the IRS.

Steps:

📌 Processing Time: Up to four weeks to receive your EIN by mail.

Applying by Fax

Faxing your application can be faster than mailing. The IRS generally processes faxed applications within four business days.

Steps:

📌 Processing Time: Most fax applications are processed in about four business days. If received after 1:00 p.m. Eastern, the IRS treats them as received the next business day.

📝 Tip: EINs are free. Be cautious of third-party services that charge a fee to “help” with the application.

Step 4: Set Up Your Business Location

Choosing the right location can influence your business’s success. It affects costs, customer access, compliance, and even your ability to attract talent. Taking time to research and plan will help you avoid costly mistakes later.

Research State Regulations and Taxes

Each state has its own rules, licensing requirements, and tax policies. Look for a state that aligns with your business model and offers favorable conditions for growth.

✅ Visit the state’s official website for business information.
✅ Check with the local Chamber of Commerce for guidance.
✅ Compare tax rates, filing fees, and incentives between states.

📝 Note: Some states offer tax credits or grants to attract businesses. These can reduce startup costs.

Consider Proximity to Suppliers and Customers

The distance between your business, your suppliers, and your customers impacts expenses and efficiency.

✅ Evaluate shipping and transportation costs.
✅ Assess delivery times and customer reach.
✅ Look for areas with reliable infrastructure to support your operations.

Analyze the Local Labor Market

A skilled workforce is essential for growth. Consider areas with strong talent pools in your industry.

✅ Review demographic data and wage rates.
✅ Contact local workforce development agencies or state employment departments.
✅ Identify regions where competition for talent is lower but skills are strong.

Evaluate Real Estate Options

The type of property you choose should match your business needs and future growth plans.

✅ Compare office, retail, or manufacturing spaces in different areas.
✅ Analyze lease agreements, purchase terms, and zoning restrictions.
✅ Consult a commercial real estate agent or attorney for legal guidance.

Check Zoning Regulations

Before signing a lease or purchasing property, verify that local zoning laws permit your business type.

✅ Contact the local planning or zoning department.
✅ Ask about permitted uses and any restrictions.

📝 Tip: Ignoring zoning laws can lead to fines or even forced closure. Always confirm compliance before committing.

Secure Necessary Permits and Licenses

Once you’ve chosen a location, apply for all required permits and licenses. Requirements vary by state and city.

✅ Review local, state, and federal regulations.
✅ Schedule inspections if needed.
✅ Keep copies of all approvals for your records.

📝 Note: Missing or delayed permits can stall your opening or lead to penalties. Plan this step early to stay on schedule.

Step 5: File for Business Permits and Licenses

Obtaining the right permits and licenses helps ensure your business operates legally and avoids potential penalties. Federal, state, and local governments each have their own requirements, so it’s important to know which apply to your business before you begin operations.

Federal Permits

Certain industries require federal permits or licenses. These apply only to specific activities, so many small businesses may not need them. Use the table below to see examples of industries that require federal permits:

Business activity	Description	Issuing agency
Agriculture	If you import or transport animals, animal products, biologics, biotechnology or plants across state lines.	U.S. Department of Agriculture
Alcoholic beverages	If you manufacture, wholesale, import, or sell alcoholic beverages at a retail location.	Alcohol and Tobacco Tax and Trade Bureau Local Alcohol Beverage Control Board
Aviation	If your business involves operating aircraft, transporting goods or people via air, or aircraft maintenance.	Federal Aviation Administration
Firearms, ammunition, and explosives	If your business manufactures, deals, or imports firearms, ammunition, and explosives.	Bureau of Alcohol, Tobacco, Firearms and Explosives
Fish and wildlife	If your business engages in any wildlife-related activity, including the import or export of wildlife and derivative products.	U.S. Fish and Wildlife Service
Commercial fisheries	If your business engages in commercial fishing of any kind.	National Oceanic and Atmospheric Administration Fisheries Service
Maritime transportation	If you provide ocean transportation or facilitate the shipment of cargo by sea.	Federal Maritime Commission
Mining and drilling	If your business is involved in drilling for natural gas, oil, or other mineral resources on federal lands.	Bureau of Safety and Environmental Enforcement
Nuclear energy	If your business produces commercial nuclear energy, is a fuel cycle facility, or is involved in the distribution and disposal of nuclear materials.	U.S. Nuclear Regulatory Commission
Radio and television broadcasting	If your business broadcasts information by radio, television, wire, satellite, or cable.	Federal Communications Commission
Transportation and logistics	If your business operates an oversize or overweight vehicle. Permits for oversize and overweight vehicles are issued by your state government, but the U.S. Department of Transportation can direct you to the correct state office.	U.S. Department of Transportation

📝 Note: The U.S. Small Business Administration (SBA) website offers a full list of industries that may require federal permits. Checking early can help you avoid delays.

State Permits

State permits usually apply to sectors such as retail, wholesale, construction, and health care. Since each state sets its own rules, it’s important to confirm requirements before launching operations.

Common examples of state permits include:

✅ Sales tax permits
✅ Professional and occupational licenses
✅ Health department permits

📝 Note: State business licensing and permit offices typically list all requirements online.

Local Permits

City and county governments often require additional permits, especially for businesses operating in physical locations. These can cover zoning, signage, or health and safety compliance.

Examples include:

✅ Building permits
✅ Signage permits
✅ Health and safety permits

Checking your local business office or government website can help you determine which local permits you need.

Understanding State-Specific Requirements

Each state in the US has its own set of rules and regulations for registering a business. It’s important for entrepreneurs to be aware of these requirements before initiating the registration process to avoid delays and penalties.

Key considerations include:

✅ Licenses and permits: Depending on the type of business, you may need general business licenses, professional licenses, sales tax permits, health permits, or zoning permits.
✅ Registered agent: Most states require appointing a registered agent with a physical address in the state. This person or entity receives legal documents on behalf of the business.
✅ State fees: Registration often includes fees such as incorporation charges, franchise taxes, and annual report fees. These costs vary by state and business type.

📝 Note: Some states also offer expedited processing for an additional fee, which may help you launch faster if you’re on a tight timeline.

Step 6: Open Business Bank Accounts

Opening a business bank account is a key step for any new business in the US. It separates personal and business finances, simplifies accounting and tax preparation, and builds credibility with customers, suppliers, and lenders.

Here’s how to set up your business bank account:

1. Choose the right bank and account type.

Research banks and their offerings, including fees, transaction limits, and added services. Pick the type of account that matches your needs, such as a business checking account, savings account, or business credit account.

2. Prepare your documentation.

Gather the required paperwork before you visit the bank. This often includes:

✅ Employer Identification Number (EIN)
✅ Business address
✅ Social Security Number (for sole proprietors)
✅ Articles of Incorporation, Certificate of Authority, or Certificate of Assumed Name (if applicable)

3. Visit the bank in person.

Opening the account in person allows you to ask questions, confirm you have all required documents, and complete signatures on the spot.

4. Make the initial deposit.

Most banks require an opening deposit. The amount depends on the financial institution, so bring the necessary funds.

5. Understand account features and fees. 

Review the account’s online banking tools, mobile access, transaction fees, and monthly charges so you know exactly what to expect.

📝 Note: As your business grows, you may need additional accounts, such as dedicated payroll or merchant accounts. Review your banking setup regularly to ensure it continues to fit your needs.

Frequently Asked Questions

What is the process for registering a business in the US?

The process varies depending on the state and the type of business entity. In general, it includes these steps:

✅ Choose a business entity type (sole proprietorship, partnership, LLC, or corporation)
✅ Select a business name and confirm its availability
✅ Apply for an Employer Identification Number (EIN) from the IRS
✅ Set up your business location
✅ File for necessary permits and licenses
✅ Open a business bank account

How do I check the availability of a business name?

Most states offer an online search tool through their Secretary of State website or business registry database. This lets you see if a name is already in use or available.

When choosing a business name, consider these tips:

What are the costs involved in registering a business?

Costs depend on the state and business structure. For example, forming an LLC usually involves state filing fees and annual report fees. You may also need to pay for permits, licenses, and professional advice. Sole proprietorships typically have minimal upfront setup costs and often no annual reporting requirements.

Do I need to register an online business?

Yes. Online businesses must follow the same registration requirements as traditional businesses. This includes choosing a business structure, registering with the relevant state agency, obtaining permits and licenses, and applying for an EIN from the IRS.

Can foreigners register businesses in the US?

Yes. Foreigners can register businesses in the US but must comply with specific requirements. These may include:

📌 To learn more about setting up a business in the US as a foreigner, check out our article on the O-1 visa.

What documents are required for proof of business registration?

Common documents include:

A business registration number or EIN confirmation letter may also serve as proof of registration.

Wrapping It Up

Starting a business in the US takes planning, but breaking it into steps makes it easier. From picking a structure and name to getting permits and opening a bank account, each move helps lay a strong foundation.

If you’re preparing to launch, keep your documents ready, review your state’s rules, and plan for any fees. Taking things step by step can help your business get off to a smoother start.

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