How to Register a New Business

A Step-by-Step Guide

Starting your own business is an exciting step—but before you can officially open your doors, you’ll need to register your business properly. The good news? While each state may have its own requirements, the process generally follows the same key steps. Here’s a simple guide that applies no matter where you’re located.

1. Choose a Business Name

The first step in registering your business is selecting a name that reflects your brand and isn’t already in use. You’ll want to:

• Make sure the name is unique in your state (check your Secretary of State’s website).
• Confirm the domain name is available if you plan to have a website.
• Avoid any trademark conflicts by searching the U.S. Patent and Trademark Office database.
• Once you’ve found a name that’s available, you may want to reserve it while you complete the rest of your setup.

2. Decide on a Business Structure

Your legal structure determines how your business will be taxed, how liability is handled, and how you can raise funds. Common structures include:

• Sole Proprietorship – Simple and inexpensive but doesn’t protect personal assets.
• Partnership – Shared ownership, often used by businesses with more than one founder.
• LLC (Limited Liability Company) – Offers liability protection and flexibility.
• Corporation (C Corp or S Corp) – Great for larger businesses or those seeking investment, but more complex.

Most small businesses start as an LLC because it offers protection and is relatively simple to maintain.

3. Register with Your State

Now it’s time to make it official. You’ll register your business with the state where you operate, typically through the Secretary of State’s office.

For LLCs and corporations, this means filing Articles of Organization or Incorporation and paying a filing fee. Sole proprietors and partnerships may need to register a “Doing Business As” (DBA) name instead.

Some states allow online registration, while others may require forms to be mailed or submitted in person.

4. Get a Federal EIN (Employer Identification Number)

Most businesses need an EIN, even if they don’t have employees. It’s like a Social Security Number for your business and is used for tax purposes. You’ll need an EIN to:

• Open a business bank account
• Hire employees
• File taxes
• Apply for licenses and permits

You can apply for an EIN online for free through the IRS website.

5. Apply for Any Required Licenses and Permits

Depending on your industry and location, you may need federal, state, or local licenses to operate legally. Examples include:

• Business licenses
• Health or safety permits
• Zoning or signage permits
• Professional licenses (for fields like cosmetology, childcare, or legal work)

Check your local city or county website for specific requirements.

6. Open a Business Bank Account

Keep your business and personal finances separate by opening a dedicated business bank account. Most banks will require your EIN and proof of business registration. A separate account not only helps with record-keeping, but it also adds professionalism and credibility to your business.

7. Stay Compliant

Once you’re up and running, don’t forget to stay on top of your responsibilities. This includes:

• Filing annual reports or statements (required in many states)
• Renewing licenses or permits
• Keeping up with state and federal tax filings
• Consider working with a bookkeeper or CPA to make sure you stay in good standing.

Registering your business may seem intimidating, but when you break it down step by step, it’s totally manageable. Taking the time to do it right ensures that your business is protected, compliant, and set up for long-term success.