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How-To Guides · N°39

How to Register a Business: Complete Step-by-Step Guide

Learn how to register a business step by step: pick a structure, name it, file with your state, get an EIN, and secure licenses. Clear, up-to-date guide.

Registering a business is simpler than most people expect, but the order matters. Do the steps out of sequence and you can end up paying for a name you can't use, or filing formation paperwork before you've decided how you want to be taxed. This guide walks through exactly how to register a business from start to finish, so you can move from idea to legally recognized company without backtracking.

What "Registering a Business" Actually Means

There's no single button that "registers" a business. It's a sequence of related actions handled by different agencies:

  • Your state recognizes your legal entity (LLC, corporation, etc.).
  • The IRS issues your federal tax ID.
  • Your city, county, or state grants any licenses your industry requires.

If you're operating as a sole proprietor under your own legal name, you may not need to formally register an entity at all. The moment you form an LLC, incorporate, or trade under a name that isn't your own, registration steps kick in. If you're still deciding whether to launch, our broader guide on how to start a business covers the groundwork that comes before this stage.

Step 1: Choose Your Business Structure

Your structure determines how you register, how you're taxed, and how much personal liability you carry. The common options:

  • Sole proprietorship - simplest, but no liability protection. See sole proprietorship explained.
  • LLC - separates your personal assets from the business and stays flexible on taxes. Most small businesses land here. Read what is an LLC if you're weighing it.
  • Corporation (C-corp or S-corp) - better suited to raising outside investment or issuing stock.

Pick this first, because it dictates which forms you file and whether you need an EIN. If an LLC fits, our step-by-step guide on how to start an LLC picks up right where this leaves off.

Step 2: Choose and Check Your Business Name

Before you commit, confirm the name is actually available. Learning how to register a business name starts with three quick checks:

  1. State entity search - run the name through your Secretary of State's online database to make sure no existing entity has claimed it.
  2. Domain and social handles - confirm the matching web domain is free.
  3. Trademark search - check the USPTO database so you're not infringing an existing mark. If the name is central to your brand, consider how to trademark a name.

If you'll operate under a name different from your registered entity name, you'll file a "DBA" (doing business as) with your state or county. Our dedicated walkthrough on how to register a business name covers DBAs and name reservations in detail.

Step 3: Register Your Entity With the State

This is the step most people mean when they say "register a business." You file formation documents with your state's business filing office - usually the Secretary of State.

  • For an LLC, you file Articles of Organization (called a Certificate of Formation in some states).
  • For a corporation, you file Articles of Incorporation.

Most states let you file online in under an hour. You'll list your business name, address, and a registered agent - the person or service authorized to receive legal documents on the company's behalf. Filing fees vary widely by state, so budget accordingly.

How to Register a Business in Texas

Texas is a common example because the process is well documented. To learn how to register a business in Texas as an LLC, you file a Certificate of Formation (Form 205) with the Texas Secretary of State. As of 2026 the filing fee is $300, and you can file online through the SOSDirect portal. Only one organizer is required, and the entity's legal existence begins once the state approves the certificate. Processing typically runs around 10-15 business days for online filings. You can review the official Texas Secretary of State formation FAQs before filing, or follow our step-by-step guide to forming a Texas LLC for the sequence that comes after the certificate is approved.

Every state has its own forms, fees, and processing times, so always confirm the specifics with your own Secretary of State's office.

Step 4: Get Your Federal Tax ID (EIN)

An Employer Identification Number (EIN) is your business's federal tax ID. You need one to hire employees, open a business bank account, and file business taxes - our explainer on the EIN and what it's used for walks through each of those situations. It's free, and the IRS issues it immediately when you apply online through the IRS EIN application.

Never pay a third party for an EIN - the IRS provides it at no cost. If you want the full breakdown, see our guide on how to get an EIN number.

Step 5: Register for State and Local Taxes

Depending on your state and what you sell, you may also need to register with your state's tax or revenue department for:

  • Sales tax permits, if you sell taxable goods or services.
  • State income or franchise tax accounts.
  • Payroll tax registration, once you hire employees.

These registrations are separate from your entity filing and are handled by your state's department of revenue, not the Secretary of State.

Step 6: Get the Licenses and Permits You Need

Registering your entity does not automatically make you licensed to operate. Depending on your industry and location, you may need federal, state, or local licenses - think food service permits, professional licenses, or a general local business license. Requirements vary enormously by city and trade, so check with your municipality. Our guide on how to get a business license explains how to identify exactly which ones apply to you.

Step 7: Open a Business Bank Account

Once your entity is registered and your EIN is in hand, open a dedicated business bank account. This keeps your personal and business finances separate - which is essential for maintaining the liability protection an LLC or corporation provides, and it makes tax time far simpler.

A Quick Recap: How Do I Register a Business?

To register a business, follow these steps in order:

  1. Choose a legal structure (sole proprietorship, LLC, or corporation).
  2. Pick and verify an available name, and file a DBA if needed.
  3. File formation documents with your state's Secretary of State.
  4. Get a free EIN from the IRS.
  5. Register for state and local taxes.
  6. Apply for required licenses and permits.
  7. Open a business bank account.

Work through them in sequence and you'll avoid the redo loops that trip up first-time founders. Most of the process is now online, and for a straightforward LLC you can often complete every step within a week or two, depending on your state's processing times.

Conclusion

Registering a business comes down to a clear sequence: decide your structure, secure your name, file with your state, get your EIN, handle taxes and licenses, and open a bank account. None of it is complicated on its own - the trick is doing it in the right order with accurate, up-to-date requirements for your specific state.

Ready to take the next step? Start by comparing structures in our guide to starting an LLC, then come back here to file when you're set.

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