How do I register a small business?
The basic order of operations for legally forming and registering a small business in the US.
Direct answer
Registering a small business generally means choosing a structure, registering with your state, getting an EIN from the IRS, opening a business bank account, and registering for any required state and local taxes or licenses. The exact order varies by state and structure.
Simple explanation
Registration sounds complicated, but for most small businesses it's a sequence of clear, well-defined steps. The biggest source of confusion is the order — doing things in the right order avoids re-doing paperwork.
Step-by-step
- 1
Choose a business structure
Sole proprietorship, single-member LLC, multi-member LLC, partnership, S corp, or C corp. Each has different liability, tax, and paperwork implications.
- 2
Pick and check a business name
Search your state's business name database to confirm it's available. Check domain availability and trademarks if branding matters.
- 3
Register with your state
File the formation paperwork with your state's Secretary of State (or equivalent). Sole proprietors typically don't file at this step.
- 4
Get an EIN from the IRS
Apply directly on IRS.gov. It's free and only takes a few minutes once your business is formed.
- 5
Open a business bank account
Use the EIN and your formation documents. Keep all business income and expenses through this account.
- 6
Register for state and local taxes
Sales tax, employer withholding, and city/county business licenses, depending on your state and what you sell.
Summary
- •Order matters: structure → name → state filing → EIN → bank → state/local.
- •Sole proprietors skip the state filing step in most states.
- •Get the EIN directly from IRS.gov — it's always free.
- •Open the business bank account before taking any business payments.