Register Your Business

Before you can register a business, you will need to decide on a business structure

As we emphasized in another part of this guide concerning business structures, there are many different types of legal structures for various business entities. For new business owners, choosing the best one for your business can feel overwhelming.

Don’t rush into making a decision. Instead, spend some time reading about each possible entity your business might fit into. Consider which structure is most helpful for your business, and how each structure can help you accomplish your professional and personal goals.

Next, you need to decide on a location for your business. When you start thinking about a physical location, assess what you must have, what you’d like to have, what you won’t tolerate, and how much you want to pay.

You must know these things when you evaluate your location options.

We cover location in depth in another part of this guide concerning choosing a great business location.

Many sole proprietorships and general partnerships (as well as other business entities) still want to operate under a business name. To do so, they should file a DBA (Doing Business As) with their local state or county. Here are the DBA requirements in all 50 U.S. states and territories.

You may need to get an employer identification number (EIN) from the IRS.

If you’re a sole owner and don’t have employees, this is not required. But you might want to get an EIN anyway to keep your personal and business taxes separate and to be sure that you can quickly hire when the time comes to expand your business.

The IRS has a useful checklist to help you decide whether you will need an EIN to run your business. If you do need an EIN, you can register online for free.

You’ll need your EIN when you register with your state, so be sure you get the EIN first.

Make sure you have all required licenses and permits you need to begin serving customers. Each industry and each municipality may have different requirements. The U.S. Small Business Administration can help. They created an easy way to search for required permits and licenses by entering your location and type of business.

If your LLC, corporation, partnership, or nonprofit corporation conducts business activities in more than one state, you might need file for foreign qualification in all states where your business is active.

You will register the business in one state, but most states require that in addition to that registration, you also qualify to do business in the state as a foreign entity.

Foreign qualified businesses typically pay taxes and annual report fees in both their state of legal formation and in all states where they’re qualified as a foreign entity.

To qualify as a foreign entity in any state, you typically must file a Certificate of Authority with the state. Many states also require a Certificate of Good Standing from the state where you business was legally registered. Each state charges a filing fee, but the amount varies by state and business structure so check with your state's business department for those details.