Step-by-Step Guide to Registering Your Business

Starting a business involves several key steps, from choosing a name to obtaining the right licenses. Here's the full process, start to finish.

1. Choose your business name

Once you've settled on a name, you can typically reserve it with your state's Secretary of State office so no one else registers it first.

• Check availability against your state's business name database.
• Verify a matching domain name is available.
• Run a trademark search through the USPTO so your name doesn't infringe on an existing mark.

2. Choose your business structure

Your structure affects your taxes, liability, and how you run the business - see our companion article on choosing between an LLC, S-Corp, and C-Corp for the full comparison.

3. Register your business entity

Next, you file formation documents with your state. An LLC files Articles of Organization (sometimes called a Certificate of Formation); a corporation files Articles of Incorporation. You'll typically need to provide:

• Business name and address
• Business structure (LLC, S-Corp, C-Corp, etc.)
• Names of members, owners, or officers
• A registered agent - the person or company authorized to receive legal documents on your business's behalf

4. Create an operating agreement or bylaws

For LLCs and corporations, it's strongly recommended - and in some states required - to put your governance in writing. An LLC operating agreement defines ownership and member responsibilities; corporate bylaws define how the board and meetings function.

5. Obtain an EIN

An Employer Identification Number (EIN) is your business's federal tax ID from the IRS. You'll need one for tax filing, hiring employees, and opening a business bank account. It's free to obtain directly from the IRS, and required for every business except sole proprietorships with no employees.

6. Register for state and local taxes

Depending on your location and business type, you may need to register separately for:

• State sales tax, if you sell goods or services
• State income tax, in states that levy one on businesses
• Payroll taxes - state unemployment insurance and withholding - if you have employees

7. Obtain business licenses and permits

Depending on your industry and location, you may need a general business license from your city or county, professional licenses (common in healthcare, law, finance, and construction), or health and safety permits.

8. Set up business banking and accounting

Open a separate business bank account so your personal and business finances stay cleanly split - this makes tax time significantly easier. Accounting software, or a bookkeeper, will help you stay on top of cash flow from day one.

9. Keep up with ongoing requirements

Registration is the start, not the finish. Most states require some form of annual or biennial report to stay in good standing, on top of your regular tax filings - and keeping accurate business records will make all of it easier.

Need help registering your business? ZipInCorp guides you through each step, from name reservation to your first EIN.