Free formation guide
How to register a business: a complete beginner overview.
If you are asking "how do I register a business" for the first time, this page is written for exactly that stage. Unlike a checklist for people who already know their structure, this is the full-picture explainer that starts from zero and covers every decision point along the way.
Decision one
The five structures, honestly compared.
Everything downstream (taxes, liability, paperwork) flows from this one choice, so make it on purpose.
Sole proprietorship
The simplest start: you and the business are legally the same. Fast and cheap (often just a DBA filing), but there is no separation between business debts and your personal assets.
LLC
The most common choice for new entrepreneurs: liability separation with manageable paperwork. Formed by filing Articles of Organization with your state.
Full LLC guide →Corporation
A structure with its own board, shareholders, and formal governance. Entrepreneurs typically choose it when they plan to raise venture capital, issue stock options, or eventually go public.
Public benefit corporation
A for-profit structure that legally commits the company to a stated public benefit alongside profit. Not every state has enacted PBC statutes, so confirm yours before drafting anything.
Nonprofit
Two separate approvals: state incorporation first, then federal 501(c)(3) tax-exempt status from the IRS. One does not automatically grant the other.
The path
Registering a business, step by step.
- 1
Decide what kind of entity you are forming
Before any paperwork gets filed, you need to know whether you are forming a sole proprietorship, an LLC, a corporation, a public benefit corporation, or a nonprofit. This single decision determines your tax treatment, your personal liability exposure, and how much ongoing paperwork you will manage every year.
- 2
Choose and clear your business name
Your business name has to be distinguishable from other registered entities in your state and, ideally, available as a matching domain and social handle. Skipping a proper name search is one of the most common reasons filings get bounced back.
- 3
File with the right government agency
Most formal entities register with the Secretary of State (or equivalent) in their formation state. Sole proprietors typically only need a "doing business as" (DBA) filing at the county or state level rather than a full entity formation. Either way, file directly with the government office and pay only its own fee; our free directory links every state's official office.
- 4
Get your federal tax ID (EIN)
Once your entity is approved, apply for an EIN directly through the IRS. This number becomes the identifier for taxes, hiring, and banking going forward, and the IRS issues it at no charge.
- 5
Handle licenses, permits, and local requirements
Depending on your industry and location, you may need additional local or state business licenses, health permits, or professional licenses before you can legally operate, even after your entity is fully registered. Your city hall and state licensing boards are the honest sources for what applies to you.
State-specific reality check: filing fees, processing times, and ongoing compliance requirements, such as annual reports or franchise taxes, vary significantly by state. That is why every state page in our free directory links the official source for the live numbers.
Keep moving
Go deeper on each step.
How to form an LLC →
The most popular structure for new entrepreneurs, walked through in six honest steps.
How to get an EIN number →
The free federal tax ID from the IRS: who needs it, how to apply, and the mistakes to skip.
State-by-state directory →
Every US state's official filing office in one searchable directory. No middlemen required.
Tools on this platform
Free tools for every step above.
Business Name Generator →
Step 2 without the guesswork: brandable names with the matching domain checked for each.
Business Plan Builder →
A researched plan draft you edit and own, before you commit to a structure or a filing fee.
Business Calculators →
30+ free calculators: startup costs, pricing, break-even, and the taxes to set aside.
Contracts Directory →
Editable agreements for the working business, including an LLC operating agreement starter.
Questions
Good to know.
How much does it cost to register a business?
It depends on the entity type and the state. Filing fees, processing times, and ongoing compliance requirements such as annual reports or franchise taxes vary significantly by state, and they change, which is why we link you to your state's official filing office for the live numbers instead of printing stale ones. Find yours in the free directory at /register-a-business.
Do I register with the federal government or my state?
The entity itself is created at the state level, usually with the Secretary of State or an equivalent agency. The federal piece is the EIN, the tax ID the IRS issues free after your entity is approved. Licenses and permits then layer on at the local, state, or federal level depending on your industry.
What is a DBA and is it enough?
A DBA ("doing business as") registers a business name without creating a separate legal entity, and for many sole proprietors it is the only filing needed to operate under a name that is not their own. What it does not do is protect your personal assets; if you want that separation, look at an LLC or corporation.
What if I do business in more than one state?
Entrepreneurs operating in more than one state may also need to register as a "foreign entity" in each additional state where they do business, which is a separate filing from your original formation. The same official state offices in our directory handle those filings.
Is registration the finish line?
Registration is the starting line, not the finish line. Most new entities still need business licenses, permits specific to their industry, and ongoing state compliance filings to stay in good standing. Build those into the plan from day one.
Registration is the starting line, not the finish line.
Pick the structure, clear the name, file with the real agency, get the free EIN, and keep building. The free account keeps every piece in one place.