Starting a business is exciting, but figuring out how to register it can feel like a maze of paperwork, filing fees, and state-specific rules. Every state has its own process for registering a business, which means the steps that work in Texas may look completely different in California or Florida. Staying organized can help you avoid unnecessary stress later on.
This guide walks you through the complete process of registering a business in the United States, including choosing a legal structure, filing formation documents with your state, obtaining federal and state tax IDs, and securing required licenses and permits.
If you’ve never owned a business before, read our guide on how to start a business before learning how to register one.
How to register a business at a glance
| Time to complete | 1-4 weeks, depending on the state |
| Total cost | $0 (sole proprietorship) to $500+ (corporation) |
| Steps | Choose a business structure → pick a name → file application → get an EIN → secure a state tax ID → obtain required licenses → get business insurance |
| Required for | LLCs, corporations, limited partnerships, LLPs, sole proprietors using DBAs |
| Not required for | Sole proprietors using their legal name |
Why do businesses have to be registered?
Registering your business makes it official. It establishes who owns the business, how it will be taxed, and how it can legally operate within your state. While the exact requirements vary from state to state, the core steps are generally the same.
- Step 1: Choose a business structure
- Step 2: Register your business with your state
- Step 3: Apply for federal and state tax IDs
- Step 4: Obtain required licenses and permits
- Step 5: Get required insurance
- Step 6: Apply for trademarks or copyrights
Step 1: Choose a business structure
Required for: Everyone starting a business
There are several types of business structures to choose from, and the one you pick affects everything from taxes and paperwork to liability and day-to-day operations. Some structures are simple to set up, while others offer more legal protection and flexibility as your business grows.
| Structure | Personal liability protection | Federal tax treatment | Formation requirement | Typical cost | Best for |
|---|---|---|---|---|---|
| Sole proprietorship | No | Pass-through (Schedule C) | None required unless operating under a DBA | $0-$50 (DBA only) | Single owners, low-risk service businesses |
| General partnership | No | Pass-through (Form 1065) | None required | $0-$100 (DBA only) | Two or more owners sharing profits equally |
| Limited partnership (LP) | Limited partners: Yes / General partners: No | Pass-through (Form 1065) | State filing required | $50-$250 | Investment structures, family businesses |
| LLC | Yes | State-dependent; may be pass-through or taxed as a corporation | State filing required | $50-$500 | Most small businesses |
| S corporation | Yes | Pass-through (Form 1120-S) | State filing + IRS Form 2553 | $100-$500 | Businesses with profits over $60K seeking payroll tax savings |
| C corporation | Yes | Double taxation (corporate + dividends) | State filing required | $100-$500 | Businesses seeking investors or planning to go public |
Sole proprietorship
A sole proprietorship is the simplest business structure and is owned and operated by one person. You have complete control over the business, but you’re also personally responsible for any debts or legal claims tied to it. In most states, you do not need to formally register a sole proprietorship if you’re using your legal name. If you plan to operate under a DBA (doing business as), you’ll typically need to register that name and secure any required local permits or licenses. Read more about sole proprietorship vs LLC.
Partnership
A partnership is a business owned by two or more people who share responsibilities, profits, and liabilities. General partnerships are relatively easy to form and often do not require state registration, though local licenses may still apply. Some partnership types, like limited partnerships (LPs) and limited liability partnerships (LLPs), require registration with the state. A written partnership agreement can help define ownership percentages, responsibilities, and how decisions will be handled.
LLC
A limited liability company (LLC) combines liability protection with flexible tax options, making it one of the most popular business structures for small business owners. LLC members are generally protected from personal liability for business debts and lawsuits. Forming an LLC usually requires filing Articles of Organization or a Certificate of Formation with your state’s Secretary of State office. Many states also require LLCs to file annual reports or maintain ongoing compliance paperwork.
Corporation
A corporation is a separate legal entity that offers strong liability protection for its owners, known as shareholders. Corporations typically require more paperwork and ongoing compliance than other business structures. To form one, you’ll need to file Articles of Incorporation with your state. Corporations may also need to create bylaws, issue stock, and hold annual meetings. C corporations are taxed separately from their owners, while S corporations can elect pass-through taxation through the IRS. Explore the key differences between LLCs and corporations before deciding.
Step 2: Register your business with your state
Required for: LLCs, corporations, LPs, LLPs. Not required for: Sole proprietors using their legal name, general partnerships
Registering your business with the state makes it legally recognized and helps establish tax and compliance requirements. The process, filing requirements, and fees vary depending on where you’re forming your business. For example, forming an LLC costs $100 in Virginia, while Colorado charges $50 for the same filing.
Confirm your business name is available
Before filing formation documents, search your state's business name database to confirm that your chosen business name is available, meaning no other registered business is already using your name or something too similar. This helps prevent registration delays and protects your branding.
If you plan to operate under a name different from your legal name or your registered business entity name, you'll need to file a DBA, sometimes called a trade name or fictitious name. For example, "Smith Holdings LLC" might file a DBA to operate publicly as "Smith's Bakery."
Select your state from the list below to access its business name lookup tool. Keep in mind that a state search is not always a guarantee that the name is fully available.
Common mistake: Checking only your state’s database and skipping a federal trademark search. A name may be available in your state but still infringe on an existing trademark registered through the United States Patent and Trademark Office (USPTO), which could lead to legal issues later on.
When checking for a business name, be sure you also consider whether a website domain is available for that name. You can use GoDaddy’s domain name search tool to check your preferred business name’s availability.
Having a domain name that matches your business name makes it easier for customers to find your website.
File your business formation documents
Once you've confirmed your business name is available, file your formation documents with your state's Secretary of State office. The specific document you need to file depends on your business structure:
- LLC: Articles of Organization (called Certificate of Formation or Certificate of Organization in some states)
- Corporation: Articles of Incorporation
- Limited partnership: Certificate of Limited Partnership
- LLP: Certificate of Limited Liability Partnership
Most states will ask for the following information when completing your filing:
- Legal business name
- Principal office address
- Registered agent name and physical street address
- Names of members/managers (LLC) or directors/officers (corporation)
- Business purpose (required in some states)
- Number and value of shares (corporations only)
Common mistake: Using your home address as your registered agent address. In most states, this information becomes part of the public record. If privacy is important to you, consider using a registered agent service instead.
Costs: Filing fees vary widely depending on the state and business type. Some states charge as little as $35, while others can exceed $500. Most filings fall somewhere between $50 and $150.
Processing times: Online filings typically process in 1-7 business days. Mail submissions take 2-4 weeks. Many states also offer expedited filing options for an additional fee if you need faster approval.
Find your state in the table below to get started with the business application process.
Step 3: Apply for federal and state tax IDs
Required for: Businesses with employees, LLCs taxed as corporations, all corporations, partnerships. Optional but recommended for: Sole proprietors, single-member LLCs
Depending on your business structure, you may be required to file federal and state taxes on behalf of your business.
Federal: Obtain an employer identification number (EIN)
An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS that identifies your business for tax purposes. It’s similar to a Social Security Number.
You need an EIN to:
- Open a bank account
- Hire and pay employees
- Apply for a business license
- File tax returns
Apply for your EIN directly through the IRS website. Online applications are free and typically approved immediately.
If you do not have a U.S. Social Security Number, you’ll need to apply by phone, fax, or mail using Form SS-4. Mail applications generally take four to six weeks to process, while fax submissions are usually completed within four business days.
Common mistake: Applying for an EIN before your state filing is officially approved. The IRS requires your exact legal business name to match your approved state registration documents.
State: Apply for a state tax ID
Your business may also need a state tax ID if it will:
- Collect sales tax from customers
- Have employees in states with income tax
- Pay state business taxes
States without income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) may still require registration for sales tax for unemployment insurance purposes.
Select your state below to confirm requirements and apply:
File taxes on a timely basis
Business tax deadlines differ from personal tax deadlines. They are:
- Sole proprietors: April 15 (Schedule C with personal return)
- Partnerships and S-corporations: March 15 (Forms 1065 and 1120-S)
- C-corporations: April 15 (Form 1120)
- Quarterly estimated taxes: April 15, June 15, September 15, January 15
For more information, see the IRS business taxes website.
Step 4: Obtain required licenses and permits
Requirements vary by industry, state, county, and city
Depending on what your business does and where it operates, you may need specific licenses or permits at the federal, state, county, or city level before you can open your doors.
Federal licenses
Federal permits apply only to certain regulated industries and activities. You may need a federal permit if your business involves:
- Manufacturing, importing, or selling alcoholic beverages
- Manufacturing or dealing firearms or ammunition
- Operating commercial fisheries
- Broadcasting (radio or television)
- Transporting hazardous materials
- Preparing meat products
Check the Small Business Administration website for the full list of federally regulated activities.
State and local licenses
State and local requirements vary widely depending on your location and industry. Some of the most common permits include:
- Seller's permit (also called sales tax permit): Required in 45 states to collect sales tax from customers
- Resale certificate (wholesale license): Allows tax-exempt purchases of goods you intend to resell
- Professional license: Required for contractors, electricians, plumbers, accountants, real estate agents, cosmetologists, and many other professions
- Health department permit: Required for restaurants, food trucks, and food manufacturing
- Zoning permit: May be required for home-based businesses, retail locations, or businesses in certain areas
- Signage permit: Required in many cities for exterior business signs
Common mistake: Securing state licenses but overlooking city or county requirements. Many local governments have separate permitting rules, so it’s important to check with both your city and county offices in addition to your state agencies.
Select your state below to view licensing requirements:
Step 5: Get required insurance
Required for: Businesses with employees (specific coverages). Recommended for: All businesses
Business insurance can help protect your company from lawsuits, workplace injuries, property damage, and other unexpected costs. Some policies are legally required once you hire employees, while others are optional but strongly recommended for long-term protection.
Required insurance (businesses with employees)
Federal and state laws require most businesses with employees to carry certain types of coverage, including:
- Workers' compensation insurance: Covers medical costs and lost wages for employees injured on the job. Required in almost all states for businesses with employees (except in Texas).
- Unemployment insurance: Funded through payroll taxes; provides benefits to workers who lose their jobs.
- Disability insurance: Required in California, Hawaii, New Jersey, New York, Rhode Island, and Puerto Rico.
Recommended insurance
Even if not legally required, the right insurance policy can help protect your finances and keep your business running after an unexpected event. Here are some optional coverages to consider:
- General liability insurance: Covers third-party claims involving bodily injury, property damage, or advertising-related issues.
- Professional liability insurance (E&O): Helps cover claims involving professional mistakes, negligence, or incomplete work. Often recommended for consultants, accountants, agencies, and service-based businesses.
- Product liability insurance: Covers claims related to products you manufacture or sell.
- Commercial property insurance: Covers damage to your business property from fire, theft, or natural disasters.
Check with your state’s Department of Insurance or Secretary of State office to confirm the coverage requirements that apply to your business.
Step 6: Apply for trademarks or copyrights
Optional, but recommended for businesses with distinctive branding, logos, slogans, or creative works
A trademark helps protect key parts of your brand, including your business name, logo, or slogan, from being used by competitors. Registering a trademark with the USPTO gives you exclusive rights to use that asset nationwide within your industry.
You may want to register a trademark if:
- Your brand name is central to your business identity
- You want to prevent competitors from using similar names or logos
- You plan to operate in multiple states
You can apply for a trademark through the USPTO website.
Copyrights protect original creative work such as written content, graphics, videos, music, software, and other original materials your business creates. Copyright registration is handled through the US Copyright Office.
For more information, see our article on trademark symbols.
Register a business: Real-life examples
Here are two examples of registering a business that should make this process a bit easier to digest.
Example 1: Registering a sole proprietorship
Sarah wants to open a bakery called Sweet Delights in Austin, Texas as a sole proprietor. She'll use a business name different from her legal name.
Process:
- Research requirements: Sarah contacts the Travis County Clerk's office and learns she needs to file a DBA since she's not using her personal name.
- Register DBA: Sarah files an Assumed Name Certificate with Travis County for $25. She also verifies that no federal trademark exists for "Sweet Delights" in the bakery category.
- Get permits: Sarah applies for a food handler's permit from the Texas Department of State Health Services and a food establishment permit from Austin Public Health. Combined, these cost about $400.
- Tax registration: Sarah registers for a Texas sales tax permit through the Comptroller's office (free) to collect sales tax on taxable items.
- EIN (optional): Although not required for a sole proprietor with no employees, Sarah obtains an EIN online to keep her Social Security number off business documents.
Total time: 2 weeks
Total cost: Approximately $425
Example 2: Registering an LLC
Alex and Jamie want to start a tech consulting business called Tech Innovators LLC in Virginia.
Process:
- Choose structure: They select an LLC for liability protection and tax flexibility.
- Check name availability: They search the Virginia State Corporation Commission database and confirm "Tech Innovators LLC" is available. They also check the USPTO database for trademark conflicts.
- File formation documents: Alex and Jamie file Articles of Organization online through the Virginia SCC website for $100. It takes about 3 business days to process.
- Designate registered agent: They use a registered agent service to keep their home addresses private, which costs $125 per year.
- Obtain EIN: They apply online and receive their EIN immediately for free.
- State tax registration: They register with the Virginia Department of Taxation at no cost for withholding tax because they plan to hire employees.
- Operating agreement: They draft an operating agreement outlining ownership percentages (50/50), management responsibilities, and profit distribution.
Total time: 1 week
Total cost: Approximately $225
If you’re going the LLC route, learn how to start an LLC or how to transfer an LLC to a different state. For state-specific guidance, check out the resources below.
Get local assistance and join small business groups
Starting a business can be a daunting challenge, but you don’t have to go it alone. Local resources like small business grants, networking groups, and educational webinars can help you build valuable skills and uncover funding opportunities as you grow.
It’s also worth connecting with other business owners in your area. Local partnerships can lead to shared insights, cross-promotions, and stronger relationships within your community, all of which can help your business stand out over time.
The table below provides links to resources for each state, but you should also look into small business resources that are specific to your county, city, or region.
Conclusion
Registering your business establishes your legal structure, protects you from liability (depending on the structure chosen), and sets you up for tax compliance. While requirements vary by state, the core steps are consistent: choose a structure, register with your state, obtain tax IDs, and secure necessary licenses.
Use the state-specific links throughout this article to complete each step. For additional support, connect with your local Small Business Development Center or the resources in your state. When you’re ready to take the next step, register your LLC for free with GoDaddy Airo.
FAQ
How much does it cost to register a business?
The cost to register a business depends on your state and business structure. Sole proprietorships operating under a legal name may not require any state filing fees, while LLC filing fees typically range from $35 to $500. Additional costs may include registered agent services, annual report fees, and business licenses.
How long does business registration take?
Most online business registrations are processed within one to seven business days. Mailed filings can take two to four weeks, depending on the state. Many states also offer expedited filing for an additional fee.
Do I need to register my business?
You generally need to register your business if you are forming an LLC, corporation, LLP, or limited partnership. Sole proprietors using their legal name may not need to file with the state unless they operate under a DBA.
Can I register a business from home?
Yes, you can register a business using your home address. Keep in mind that the address listed on your formation documents usually becomes part of the public record. Some business owners choose to use a registered agent service or virtual business address to help protect their privacy.
Do I need an EIN if I have no employees?
You may not legally need an EIN if you are a sole proprietor with no employees, but many business owners still choose to get one. An EIN is free through the IRS and can help keep your Social Security number off business paperwork. Most banks also require an EIN to open a business bank account.
Do I need a business license?
Many businesses need at least one license or permit to operate legally. Requirements vary based on your industry and location. Some professions require state-issued licenses, while cities and counties may require local business permits or zoning approvals. Always check requirements at the federal, state, county, and city levels.
What's the easiest business structure to set up?
A sole proprietorship is usually the easiest business structure to start because it does not require formal state registration in most cases. However, you may still need to apply for local permits or licenses.








