How to Register a Business in the US

Want to start a business in the US? Here’s a quick guide to get started:

1. Choose a Business Structure
   Decide between options like Sole Proprietorship, LLC, Partnership, or Corporation. Your choice impacts taxes, liability, and paperwork.
2. Register Your Business Name
   Pick a unique name, check its availability with state and federal databases, and register it. Consider trademarks for extra protection.
3. Get an EIN (Employer Identification Number)
   Apply for this free federal tax ID from the IRS. It’s essential for taxes, hiring employees, and opening a business bank account.
4. File State-Specific Registrations
   Register for state taxes, licenses, and permits based on your location and industry.
5. Stay Compliant
   File annual reports, renew licenses, and meet ongoing legal requirements to keep your business in good standing.

Why register? It protects your personal assets, boosts credibility, and opens doors to funding, tax benefits, and partnerships. Ready to make your business official? Let’s dive in!

Step 1: Pick Your Business Structure

Once you understand the benefits of registering your business, the next step is laying the legal groundwork by selecting the right structure. Your choice affects everything from taxes and liability to funding opportunities and paperwork. It’s a decision that can shape your business’s future, so it’s worth careful consideration.

According to the U.S. Small Business Administration (sba.gov), "The business structure you choose influences everything from day-to-day operations, to taxes and how much of your personal assets are at risk."

Common Business Structure Types

Sole Proprietorship
The simplest option for those working solo. It’s easy to set up and gives you full control over your business. However, there’s no legal distinction between you and your business, meaning your personal assets are at risk if things go south. Profits and losses go directly to your personal tax return, and you’ll be responsible for self-employment taxes on your earnings.

Partnerships
Designed for two or more co-owners, partnerships are straightforward to establish. To limit liability, you can opt for a limited partnership or a limited liability partnership. There are three main types:

• General partnerships: All partners share unlimited liability.
• Limited partnerships: One general partner assumes unlimited liability, while others have limited liability.
• Limited liability partnerships (LLPs): All partners enjoy limited liability protection.

Limited Liability Companies (LLCs)
LLCs combine elements of corporations and partnerships. They offer personal liability protection while letting profits and losses pass through to your personal income, avoiding corporate taxes. Plus, LLCs give you flexibility in how you’re taxed – you can choose to be taxed as a corporation, partnership, or sole proprietorship.

C Corporations
A C corporation is a separate legal entity, providing strong liability protection. However, it comes with higher formation costs and the downside of double taxation: the corporation pays a 21% tax on profits, and shareholders are taxed again on dividends.

S Corporations
S corporations avoid double taxation by passing profits (and some losses) directly to owners’ personal income, bypassing corporate tax rates. However, they come with restrictions, such as a cap of 100 shareholders, who must meet certain criteria (e.g., individuals or specific types of trusts – not partnerships or corporations).

Choosing the right structure depends on your business goals, financial situation, and risk tolerance.

What to Consider When Choosing Your Structure

Beyond understanding the basics of each structure, it’s important to weigh key factors to make the best choice for your business.

Liability Protection
Protecting personal assets is critical. In 2023, bankruptcy filings rose by 21%, with commercial Chapter 11 filings jumping 141%. Sole proprietorships and general partnerships leave your personal assets exposed, while LLCs and corporations provide a safety net.

Tax Considerations
Different structures come with different tax obligations. Flow-through entities like sole proprietorships, partnerships, S corporations, and LLCs are taxed at individual income rates, which range from 10% to 37%, depending on your bracket. C corporations, on the other hand, face double taxation – profits are taxed at 21% at the corporate level and again when distributed as dividends.

"As a small business owner, you want to avoid double taxation in the early stages. The LLC structure prevents that and makes sure you’re not taxed as a company, but as an individual." – Jennifer Friedman, Principal at Rivetr

Future Funding Needs
If you plan to attract venture capital or go public, forming a corporation in Delaware is often the preferred route. Investors typically favor C corporations for their ability to issue multiple classes of stock.

Administrative Requirements
The complexity of administrative tasks increases with certain structures. Sole proprietorships require minimal paperwork, while C corporations demand more formalities like board meetings, shareholder resolutions, and detailed records.

Control and Flexibility
Sole proprietorships offer full control but come with unlimited liability. LLCs strike a balance, providing flexibility for growth while limiting personal risk. Corporations, although offering strong liability protection, operate under stricter guidelines.

Your business structure doesn’t have to be permanent – it can change as your business evolves. Starting with the right setup can save you time, money, and headaches later. Consult tax and legal professionals to ensure your choice aligns with your goals.

Step 2: Register Your Business Name and Create Your Entity

Now that you’ve decided on your business structure, it’s time to make things official. Registering your business name and filing the necessary paperwork with your state transforms your idea into a legitimate entity. This step is crucial – it allows your business to operate legally, open bank accounts, and sign contracts.

How to Choose and Register Your Business Name

Your business name is more than just a label – it’s your brand’s identity and your legal identifier. Choosing the right name means striking a balance between creativity and meeting legal requirements.

"You’ll want to choose a business name that reflects your brand identity and doesn’t clash with the types of goods and services you offer." – sba.gov

Start with the Basics

A good business name should be short, relevant, and easy to remember. Research suggests that names with six to eight letters are ideal. Make sure it’s simple to spell, pronounce, and search for online. A confusing or overly complicated name can make it harder for customers to find you.

Check State Requirements

Most states won’t let you register a name that’s already in use or one that’s too similar to an existing business. Some states also require your name to reflect the type of business you’re running. Always review your state’s naming guidelines to avoid complications.

Conduct Thorough Name Searches

Before locking in your name, take the time to ensure it’s available:

• State Records Check: Use your state’s online database to confirm that your desired name isn’t already taken.
• Trademark Search: Check the United States Patent and Trademark Office (USPTO) database to avoid conflicts with existing trademarks.
• Domain Availability: If your business will have an online presence, secure a matching domain name to keep your branding consistent.

Four Ways to Protect Your Name

Once you’ve chosen a name, there are several ways to protect it:

Registering an entity name protects your business within your state, while a trademark offers nationwide protection for your brand. Depending on your goals, you might want to pursue both.

Reserve Your Name

After confirming availability, reserve your business name with your state. This ensures no one else can use it while you complete the necessary paperwork.

Consider DBA Requirements

If you plan to operate under a name different from your legal entity name, you’ll need to register a DBA (Doing Business As). While a DBA doesn’t provide the same legal protections as entity or trademark registration, it’s often required by states for businesses using alternative names.

File Your Formation Documents

With your business name secured, the next step is to formalize your entity by filing the appropriate formation documents.

Know Your Required Documents

The type of paperwork you’ll need depends on your chosen business structure:

• LLCs: File Articles of Organization.
• Corporations: File Articles of Incorporation.

These documents outline key details about your business, but requirements vary depending on your structure.

Required Information

Typically, formation documents include details like your business name, address, registered agent information, ownership structure, business purpose, and – if applicable – share details for corporations.

Filing Process and State Fees

Submit your formation documents to your state’s Secretary of State office or the equivalent agency. Many states offer online filing, which is often faster and less expensive than mailing the forms.

Here’s what you might expect to pay:

• LLC Registration: Fees range from $50 to $500, depending on the state. For example:
  • California: Around $70 online, plus a small processing fee.
  • Texas: Approximately $300, with potential franchise taxes.
  • Florida: Roughly $125, plus an annual report fee.
• Corporation Registration: Costs typically fall between $100 and $500, depending on state-specific requirements.

On average, forming an LLC in the U.S. costs about $132 as of 2025, making it an affordable option for small businesses.

Special State Requirements

Some states have additional requirements after filing. For instance, certain states, like New York, require LLCs to publish a notice of their formation in a local newspaper and submit proof to the state.

Confirmation and Next Steps

Once your documents are approved, the state will issue a certificate or confirmation document. This serves as legal proof that your business is officially recognized. You’ll need this certificate to open business accounts and enter contracts.

Multi-State Considerations

If you plan to operate in multiple states, you’ll need to register in each one where you conduct business. This process, known as foreign qualification, often involves additional paperwork and fees.

With your business officially registered, you’re ready to move forward. The next step involves completing federal and state registrations, which we’ll cover in Step 3.

Step 3: Complete Federal and State Registration

Once your business entity is officially formed, the next step is to take care of federal and state registrations. This includes getting a federal tax identification number and ensuring you’re registered with your state’s tax agencies and licensing authorities.

Get Your Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a nine-digit number issued by the IRS for tax purposes. Think of it as the business equivalent of a Social Security number. You’ll need an EIN if you plan to hire employees, form a corporation or partnership, or open a business bank account. It’s also necessary for handling payroll taxes and applying for business credit. Even if you’re a single-member LLC, many banks will require an EIN to set up a business account.

Apply for your EIN right after registering your business. If you’re forming a legal entity like an LLC, partnership, or corporation, make sure your state registration is complete first so your federal records match up correctly.

The simplest way to apply is online through the IRS website, as long as your business has a U.S. address. The online application must be completed in one session (it times out after 15 minutes), so have all your information ready: your business’s legal name, trade name, address, entity type, purpose, and primary activities. You’ll also need to name a “responsible party” who oversees the business’s operations and finances. This person must have a valid Taxpayer Identification Number (TIN), such as a Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), or another EIN.

If your business is based outside the U.S., you’ll need to apply by phone, fax, or mail. Keep in mind that applying for an EIN is free – avoid third-party websites that charge fees. If your EIN hasn’t arrived by the time you need to file a tax return, you can write “Applied For” along with the date you submitted your application in the appropriate field. Getting your EIN early is crucial to avoid delays with tax filings or other business processes.

Register for State Taxes and Obtain Licenses

State-level registrations are equally important. Many states require businesses to register for taxes and obtain industry-specific licenses. For instance, in California, businesses that sell or lease taxable goods must apply for a seller’s permit through the California Department of Tax and Fee Administration.

If you’re planning to hire employees, there are additional state requirements. In California, businesses with even one employee must register with the Employment Development Department and secure a California Payroll Tax Account Number if wages exceed $100 in a calendar quarter.

While California doesn’t have a general statewide business operating license, licensing rules vary significantly based on your industry, profession, and location. Many cities and counties require a business license, even for home-based businesses. To find out what permits or licenses you need, check with local government offices or consult your state’s website. Online tools like California’s CalGold can also help guide you through the process.

Once you’ve completed both federal and state registrations, your business is officially set up and ready to operate. The next step is to stay on top of ongoing compliance to ensure your business remains in good standing.

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Step 4: Stay Compliant with Legal Requirements

Registering your business is just the beginning. To maintain good standing, you’ll need to keep up with filing reports, renewing licenses, and following federal regulations.

File Annual Reports and Renew Licenses

Most states require businesses to file annual reports to keep their registration active. These reports typically update details like your current address, business purpose, and information about members or managers. Deadlines for filing vary by state – some require an initial report shortly after incorporation, while others follow a standard annual schedule. Missing these deadlines could result in late fees, a loss of good standing, or even dissolution.

To avoid missing important deadlines, consider setting up a tracking system with calendar reminders or using registered agent services. For license renewals, whether it’s a general business license or a specialized professional license, maintain detailed records of renewal dates, required documents, and payment amounts. It’s also crucial to stay informed about any changes in local licensing regulations.

Beyond these routine filings, federal requirements like those under the Corporate Transparency Act (CTA) demand attention.

Corporate Transparency Act Requirements

The Corporate Transparency Act (CTA), enacted in 2021, was designed to combat issues like tax fraud, money laundering, and terrorism financing. Initially, it required many U.S. small businesses to file beneficial ownership information (BOI) reports with FinCEN. However, as of March 26, 2025, U.S. companies and their beneficial owners are no longer required to submit these reports [50, 52, 54, 55]. Under the updated rules, the term "reporting company" now mainly applies to foreign entities registered to do business in the United States.

"Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy." – U.S. Secretary of the Treasury Scott Bessent

If you operate a foreign entity in the U.S., it’s important to verify your reporting status under BOI requirements. Foreign reporting companies are exempt from reporting U.S. beneficial owners [49, 50, 51, 52, 54, 55].

Failing to comply with BOI reporting requirements can result in serious consequences, including civil and criminal penalties [51, 53]. FinCEN initially stated that violations could lead to fines of up to $10,000 per violation and up to two years in prison. To stay on top of these evolving rules, consult an attorney to confirm your reporting obligations. Be cautious of scams – FinCEN has issued warnings about fraudulent attempts to collect CTA-related information. Remember, there’s no fee to file BOI reports directly with FinCEN.

Step 5: Use BusinessAnywhere to Simplify Registration

Starting a business in the US can feel like juggling a dozen spinning plates – each with its own deadlines and requirements. BusinessAnywhere steps in to make this process smoother by consolidating all the essential services you need to register and maintain your business. It’s a practical solution that complements the registration and compliance steps we’ve already covered.

What BusinessAnywhere Offers

BusinessAnywhere is designed to help entrepreneurs navigate the complexities of business registration with ease. It offers services for setting up LLCs and corporations in all 50 states, with formation packages starting at $0.00 plus state fees. That means no surprise charges sneaking up on you during the process.

BusinessAnywhere: "We are the only company formation provider on the market that has ZERO HIDDEN FEES."

The platform’s intuitive dashboard brings together four key services – company formation, registered agent service, virtual mailbox, and online notary – into one convenient place.

Speed is another major perk. With expedited filing options, you can get your business registered in as little as two business days, compared to the usual 10–14 days. This kind of fast processing can be a game-changer when you’re working against tight deadlines or trying to seize a market opportunity.

BusinessAnywhere also helps you stay compliant by sending automated reminders for important tasks like annual report filings and license renewals. No more worrying about missing deadlines or dealing with penalties.

Here’s a quick breakdown of their core services:

Each of these services is designed to tackle the common headaches of managing multiple registration requirements.

Why Use an All-in-One Platform

BusinessAnywhere simplifies the registration and compliance process by centralizing everything into one easy-to-use dashboard. Traditionally, you’d have to juggle multiple providers for tasks like filing formation documents, handling mail, and tracking compliance. This scattered approach can lead to missed deadlines and unnecessary stress.

With BusinessAnywhere, you just create an account, fill out the online form, and you’re good to go. From there, you can track your registration progress, access important documents, and manage other services without hopping between different platforms.

BusinessAnywhere: "We are the only platform to offer a user friendly dashboard with 4 essential services: company formation, registered agent service, virtual mailbox and online notary!"

Your business documents are securely stored throughout the process, giving you peace of mind. The virtual mailbox provides a professional business address with digital mail management, while the online notary ensures your documents are legally notarized without delay.

Whether you’re a US resident or a non-resident entrepreneur, BusinessAnywhere offers a straightforward way to establish a business presence in the United States. It’s a one-stop solution for anyone looking to streamline the process and stay organized.

Conclusion: Your Business Registration Checklist

Breaking the registration process into simple, actionable steps makes it much easier to manage. Here’s a checklist to help you cover all the necessary requirements:

• Choose your business structure. Think about your liability protection, tax preferences, and future plans. Whether you go with an LLC for flexibility or a corporation for its investment advantages, pick the option that aligns with your goals.
• Register your business name. Submit the required formation documents to the appropriate state agency. Don’t forget to check if your desired name is available.
• Get an Employer Identification Number (EIN). This federal tax ID, available for free through the IRS website, is crucial for handling taxes and opening a business bank account.
• Meet state-specific requirements. Depending on your location, this might include getting business licenses, registering for sales tax, or arranging workers’ compensation insurance. Make sure you’re aware of and meet all local regulations.
• Stay compliant. Keep track of annual report filings, license renewals, and other legal obligations, including requirements under the Corporate Transparency Act.

This checklist can serve as your guide to a smoother registration process. If you’re looking to save time, platforms like BusinessAnywhere can make the process even easier. Their online tools allow you to register your business from your computer or smartphone in just minutes.

FAQs

What should I consider when selecting a business structure in the US?

Choosing the right business structure is a big decision that can shape your future success. Start by looking at liability protection – some structures do a better job of safeguarding your personal assets. Then, weigh the tax implications. Each option comes with its own set of tax perks and responsibilities, so understanding these differences is key.

You’ll also want to think about how much administrative complexity you can handle. Some structures are simpler to manage than others. Don’t forget to factor in your business’s potential for growth and scalability – can the structure support your long-term goals? Lastly, make sure you’re fully aware of the legal and compliance requirements tied to your choice so you stay on the right side of the law.

How can I make sure my business name is unique and legally protected?

To make sure your business name stands out and is legally yours, begin by checking your state’s business registry. This will confirm that no other business in your state has already registered the same name. After that, search the USPTO trademark database to see if the name is federally trademarked. If it’s available, you might want to register a trademark to gain protection across the entire country.

By following these steps, you can steer clear of legal complications and ensure your business name is exclusively yours.

What are the compliance requirements to keep a business registered in the US?

To keep your business registered in the US, you’ll need to follow certain ongoing compliance requirements. One key task is filing Beneficial Ownership Information (BOI) reports with FinCEN. If your business is already established, your initial report must be submitted by January 1, 2025. For newly registered businesses, the deadline is within 90 days of formation.

Beyond this, businesses are expected to adhere to state privacy laws, financial regulations, and other federal and state rules. Since these requirements and deadlines can differ based on your business type and location, it’s essential to stay informed to avoid penalties or interruptions to your operations.

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