This guide walks you through how to register your business, choose the right structure, and meet legal requirements like licenses, EINs, and compliance filings.
Before you can officially launch your business, you’ll need to register it. This step protects your personal assets, keeps you legally compliant, and sets the foundation for growth.
Whether you're starting as a sole proprietor or forming an LLC, your business structure will affect taxes, liability, and how you operate. In this guide, we’ll break down everything you need to know — from choosing a name and filing paperwork to getting licenses and meeting deadlines.
By the end, you’ll know exactly how to register your business the right way — and avoid common mistakes along the way.
Key Takeaways:
Registering a business means officially forming your company with the appropriate local, state, or federal agencies. It’s a legal step that defines your business structure — such as a sole proprietorship, LLC, or corporation — and establishes where and how your business operates.
If you skip registration, you could face fines, legal issues, or even be barred from doing business.
Proper registration typically involves:
Here’s a quick breakdown by business type:
Registering correctly protects your personal assets, keeps you compliant with tax laws, and helps you operate legally in your state. Start by confirming your business type and checking what’s required in your location.
Choosing the right business structure isn’t just a formality — it shapes how your business operates, how you're taxed, and how protected you are legally. Registering with your state and the IRS makes your business official, helps protect your personal assets, and ensures you're set up to meet legal and tax obligations.
Your structure also determines what documents you’ll need to file, which licenses you need, and how your income is reported.
For more guidance, you can consult resources from the IRS, your state’s business registration office, or the Small Business Administration. Aligning your business type with your goals makes registration smoother and sets you up for long-term success, especially when it comes to getting an EIN, filing taxes, and staying compliant.
When you start a business, choosing the right business name is the first step in building your brand and protecting it. A unique, legally registered name not only helps you stand out but also shields you from trademark issues and compliance problems down the line.
Before committing to a name, make sure it’s available at the state and federal levels:
If you're forming an LLC or corporation, your business name will appear in your Articles of Organization or Articles of Incorporation, so double-check your state’s naming rules on its official business portal.
If your operating name is different from your legal business name, you’ll need to register a DBA.
Here's how:
Visit your local small business development center for free guidance. They assist small businesses with compliance and small business development resources. Always confirm deadlines and fees with state and local authorities to avoid delays.
Registering your business is a critical step that lays the foundation for legal operation, tax compliance, and long-term growth. In 2023, Americans filed a record 5.5 million new business applications, reflecting a surge in entrepreneurship across the country.
To ensure your business is set up correctly, follow these essential steps:
Before you begin the registration process, collect the necessary paperwork:
Having these documents ready will streamline the registration process and help avoid delays.
Submit your forms to your state's Division of Corporations or the Secretary of State's office. This step officially establishes your business in the eyes of the law.
Ensure all information is accurate; errors or omissions can lead to processing delays.
Next, register for an EIN with the IRS. This is like a Social Security number for your business and is required for:
You can apply for free at IRS.gov and receive your EIN immediately if you apply online.
Getting the right licenses is essential when you register your business. It ensures compliance with state, local, and federal regulations, helping you avoid legal issues and setting your business up for long-term growth. Different types of businesses will have varying requirements, and online businesses must adhere to both federal and local laws.
Every business has its own set of regulatory requirements. Here are some of the most common permits and licenses:
Certain industries have additional licensing or registration needs. Some examples include:
It’s important to check both state and local rules to ensure compliance and avoid fines. Researching and obtaining the necessary licenses early in the process will save you time and ensure your business is operating legally.
The cost of registering a business can vary widely depending on your business structure and location. From setting up a legal entity to obtaining necessary licenses, these fees can range from a few hundred to several thousand dollars. Being aware of these costs will help you manage your finances and avoid unexpected expenses.
The fees for registering your business differ based on your structure:
There are other potential costs to be aware of:
The time it takes to register a business varies based on your state, business type, and any necessary permits or licenses. Generally, the process can take anywhere from a few days to several weeks. Understanding the steps involved helps you set realistic timelines and avoid unnecessary delays.
Delays often occur due to incomplete forms or missing documentation. Businesses in specialized industries, such as community development financial services, may require longer processing times for additional permits. To avoid delays:
Once your business is registered, there are ongoing responsibilities to maintain its legal standing and protect your interests. Follow these essential steps to stay compliant and ensure smooth operations:
If you don’t already have one, you’ll need to designate a registered agent with the Secretary of State. This agent receives important legal documents on your behalf and ensures you never miss a critical notice.
Most states require businesses to file annual reports to keep their information up to date. This includes changes like business address updates, ownership changes, or adjustments to the management structure. Stay on top of these filings to avoid penalties or potential dissolution of your business.
Whenever there are changes in your business ownership—such as adding or removing partners—make sure to inform the county clerk’s office or other relevant agencies. This keeps your business structure officially updated and legally compliant.
Ensure the protection of personal and sensitive data, including Social Security numbers (SSNs). To maintain personal liability protection, it’s crucial to keep your business finances separate from your personal accounts. This safeguards your assets and maintains your legal protection.
In addition to state-level obligations, businesses must file federal requirements, such as tax updates and necessary renewals with agencies like the IRS. Timely renewals and compliance with federal regulations help avoid fines or other legal issues.
Stay on top of important deadlines to maintain full control over your business operations. Timely filings and compliance help ensure your business remains legally sound and prevent disruptions to your operations.
By keeping up with these responsibilities, you avoid costly penalties and ensure your business runs smoothly and stays in good legal standing. Review your obligations regularly to stay informed and compliant.
Registering your business is the first step to officially launching your brand. Choosing the right structure—whether an LLC, corporation, or sole proprietorship—lays the foundation for your legal and financial future.
Remember to maintain a registered agent for legal documents and consult an attorney for guidance on complex matters. Keep track of necessary filings, such as tax updates and annual reports, to stay compliant and avoid penalties.
Once your business is officially registered, the next step is keeping operations organized and efficient. From managing paperwork to staying on top of cash flow, administrative tasks can pile up quickly. That’s why having the right tools matters, especially when it comes to invoicing.
This is exactly where Tofu’s invoicing app can make a difference. Instead of losing hours to manual processes or outdated templates, Tofu helps you stay focused on growing your business. With Tofu, you can:
If you're ready to streamline your invoicing and get serious about your business finances, download Tofu’s invoicing app today!
To register your business, you need to select a business entity (like a sole proprietorship, LLC, or corporation), choose a unique name, and obtain any required state permits or licenses. Additionally, you must file your business information with the state. Depending on your situation, you may also need an Employer Identification Number (EIN) from the IRS. Proper business planning is essential to ensure all steps are covered.
Yes, even as a sole proprietor, you need to register with the state and obtain local permits and licenses. If you're using a trade name (DBA), it must be registered as well. This ensures compliance with local and state regulations.
The right business structure depends on factors like liability protection, taxes, and how your business will be managed. A limited liability company (LLC) provides liability protection, while a corporation may offer different tax advantages. Consult with an attorney or business advisor to choose the best structure based on your business growth goals and legal needs.
The time it takes to register your business depends on your state and the type of business entity you're forming. It can range from a few days to several weeks. Being prepared with all necessary documents will help speed up the process and avoid delays.
The licenses and permits you need depend on your business type, industry, and location. Common requirements include a general business license, zoning permits, health permits, and industry-specific certifications. Always check federal and state guidelines to ensure full compliance and avoid issues down the road.
Yes, there are various fees for business registration, obtaining necessary licenses, and complying with state and federal tax requirements. Budget for these costs early in your business planning to avoid surprises during the process.
Failing to register your business can expose you to personal liability, difficulties securing financing, and potential legal issues. By registering with the state, you ensure that your business is legally compliant and protected, which is essential for long-term success and growth.
Yes, it’s possible to change your business structure after registration, but it requires additional paperwork and might involve tax adjustments. Consulting with a tax advisor or attorney is essential to navigate the process and make informed decisions based on your business's evolving needs.