Turning an idea or side hustle into an official business can feel confusing. There are federal, state and local rules, different business structures and lots of forms. The good news is that registering a small business in the US follows a fairly standard path, and many steps can be completed online in a day or two. This guide explains how to register a small business in the US step by step, from choosing a structure to getting licenses and opening a bank account.
This guide is general information, not legal or tax advice. Requirements vary by state, county, city and industry. Consult your state’s official business website, the US Small Business Administration (SBA) or a qualified professional for your situation.
Step 1: Choose your business structure
Your structure affects taxes, personal liability and paperwork.
| Structure | Personal liability protection | Taxes | Paperwork | Best for |
|---|---|---|---|---|
| Sole proprietorship | No | Business income on personal return | Minimal | Solo, low-risk businesses starting out |
| General partnership | No | Pass-through to partners | Low | Two or more owners, low risk |
| LLC (Limited Liability Company) | Yes, generally | Pass-through by default, can elect S corp or C corp tax | Moderate | Most small businesses wanting protection |
| S corporation (tax election) | Yes, with corporation or LLC | Pass-through with possible payroll tax savings | Higher | Profitable businesses paying owner salaries |
| C corporation | Yes | Corporate tax plus tax on dividends | Highest | Businesses seeking investors |
| Nonprofit corporation | Yes | Tax-exempt if approved by IRS | High | Charitable purposes |
Many freelancers and small businesses start as sole proprietors and form an LLC later. If your business involves physical risk, client property or significant debt, consider an LLC earlier.
Step 2: Choose and check your business name
- Brainstorm a memorable name that reflects your brand.
- Check availability in your state’s business name database, usually on the Secretary of State website.
- Search trademarks using the USPTO database to avoid conflicts.
- Check domain names and social handles.
- Reserve the name if your state allows and you are not ready to file.
Sole proprietors using a name other than their legal name generally need to file a DBA (doing business as), also called an assumed or fictitious business name, with the state or county.
Step 3: Register with your state
| Structure | Filing | Typical document |
|---|---|---|
| Sole proprietorship | Often no state filing except DBA | DBA certificate |
| LLC | File with Secretary of State | Articles of Organization or Certificate of Formation |
| Corporation | File with Secretary of State | Articles of Incorporation |
| Nonprofit | File with state, then apply to IRS | Articles of Incorporation, IRS Form 1023 or 1023-EZ |
State filing fees vary widely, from under $50 to several hundred dollars. Some states also require annual reports and fees, and a few have publication requirements for LLCs.
Registered agent
LLCs and corporations need a registered agent with a physical address in the state to receive legal documents. You can usually serve as your own registered agent if you have a physical address in the state, or hire a service.
Operating agreement or bylaws
LLCs should create an operating agreement and corporations need bylaws. Even if not required by your state, these documents clarify ownership and decisions.
Step 4: Get an EIN
An Employer Identification Number is free from the IRS and usually issued immediately online. You need one for LLCs with more than one member, corporations, partnerships and businesses with employees. Many sole proprietors get one for banking and privacy. See how to get an EIN number online for free.
Step 5: Beneficial ownership information (BOI)
The Corporate Transparency Act created federal beneficial ownership reporting to FinCEN. In 2025, FinCEN issued rules that substantially narrowed these requirements, exempting US-created companies and US persons from reporting. Rules in this area have changed several times, so check FinCEN’s official website for current requirements when you register.
Step 6: Get licenses and permits
| Level | Examples |
|---|---|
| Federal | Required only for certain industries, such as alcohol, firearms, aviation, broadcasting and agriculture |
| State | Professional licenses (cosmetology, contractors, real estate), sales tax permits, industry-specific licenses |
| County and city | General business license, home occupation permit, zoning, health permits for food |
Check your city and county websites, your state’s business portal and the SBA’s licensing guide. Home-based businesses may need a home occupation permit.
Step 7: Register for state and local taxes
- Sales tax permit if you sell taxable goods or services
- State income or franchise tax registration where applicable
- Employer accounts for state withholding and unemployment insurance if you have employees
Step 8: Open a business bank account
Keep business and personal finances separate. See how to open a business bank account online.
Step 9: Set up recordkeeping and insurance
- Choose bookkeeping software or a spreadsheet.
- Save receipts.
- Consider insurance such as general liability, professional liability or business owner’s policies.
- If you hire employees, workers’ compensation is required in most states.
Typical costs
| Item | Typical cost |
|---|---|
| DBA filing | Low, varies by state or county |
| LLC formation | Roughly $50 to $500, varies by state |
| EIN | Free |
| Business license | Varies widely by city |
| Registered agent service | Optional, often $50 to $300 per year |
| Annual report | Varies by state |
Real examples
The freelance writer. Kara operated as a sole proprietor under her own name, so she did not need a DBA. She got an EIN to avoid sharing her SSN with clients.
The cleaning business. Luis formed an LLC because he works inside clients’ homes. He obtained a city business license and general liability insurance.
The online candle shop. Rita registered an LLC, obtained a sales tax permit and set up her Etsy and website shops.
Frequently asked questions
Do I need to register my business if I’m a sole proprietor?
Often you do not need to file with the state unless using a business name other than your own, but you may still need local licenses.
Should I form an LLC or stay a sole proprietor?
An LLC offers liability protection and credibility. A sole proprietorship is simpler. Consider your risk, income and goals, and consult a professional if unsure.
Which state should I register in?
Usually the state where you live and operate. Registering elsewhere often requires registering as a foreign entity in your home state too.
How long does registration take?
Online filings can be approved in hours or days, depending on the state. Some states take weeks.
Do I need a lawyer to register a business?
Not necessarily. Many owners register themselves using state websites. Complex situations may benefit from legal advice.
A registration checklist you can follow
Use this checklist to keep track of where you are in the process:
- Decide on your business structure.
- Choose a name and confirm it is available in your state and not trademarked by someone else.
- Secure a matching domain name and social media handles.
- File a DBA or your LLC or corporation formation documents.
- Appoint a registered agent (LLCs and corporations).
- Write an operating agreement or bylaws.
- Apply for a free EIN at IRS.gov.
- Check current FinCEN beneficial ownership rules.
- Research and apply for city, county and state licenses and permits.
- Register for sales tax and employer taxes if required.
- Open a business bank account.
- Set up bookkeeping and save all formation documents.
- Get appropriate business insurance.
- Calendar annual reports, license renewals and tax deadlines.
Ongoing compliance after you register
Registration is not a one-time event. To keep your business in good standing:
| Task | Typical frequency |
|---|---|
| State annual or biennial report | Every one or two years, depending on state |
| Business license renewal | Annually in many cities |
| Sales tax returns | Monthly, quarterly or annually based on sales volume |
| Federal estimated taxes | Quarterly for many self-employed owners |
| Payroll tax filings | Quarterly and annually if you have employees |
| Registered agent updates | Whenever your agent or address changes |
| Operating agreement updates | When ownership or management changes |
Missing state filings can lead to penalties or even administrative dissolution of your LLC or corporation, so set calendar reminders.
Beware of official-looking mail and websites
After registering, many business owners receive letters that look like government notices, offering to provide “certificates of good standing,” “annual minutes” or labor law posters for a fee. Some are legitimate services, but they are not required by the government. Always check official state websites before paying. Similarly, apply for your EIN directly at IRS.gov and file state documents through your Secretary of State’s website to avoid inflated third-party fees.
Taking these steps carefully at the start gives your business a solid legal foundation, so you can focus on serving customers and growing.
The bottom line
To register a small business in the US, choose a structure, pick and check your name, file a DBA or formation documents with your state, get a free EIN, check current federal reporting rules, obtain licenses and permits, register for taxes, open a business bank account and set up records and insurance. Check official state and local resources for your specific requirements. For planning help, see how to write a simple business plan and how to find a free business mentor.