How to Register a Small Business in the US (2026 Guide)

Registering a small business in the US comes down to a few steps: pick a legal structure, file with your state, get a free tax ID from the IRS, and sort out any licences. For most people the whole thing costs less than $300 and can be done in a week or two.

The details change by state, so treat this as the map and your state's business filing website as the street signs. Here's the order to do it in.

Step 1: Choose your business structure

Your structure decides whether you register with the state, how you're taxed, and whether your personal assets are protected if the business is sued or runs up debt. The four common choices for small businesses are below.

If you're unsure, an LLC is the default most small owners land on. It separates your personal assets from the business, the paperwork is lighter than a corporation's, and you can later choose to be taxed as an S corporation by filing IRS Form 2553.

A sole proprietorship is simpler still, but there's no wall between you and the business. If it owes money, you owe money.

Step 2: Pick and check your business name

Your state won't accept a name that's already taken by another registered business there. Search your Secretary of State's business database before you get attached to one. Most states also require an ending that shows the structure, such as LLC or Inc.

It's worth checking two more places: whether the domain name is free, and whether someone already holds a federal trademark on the name through the US Patent and Trademark Office. A name that's legal in your state can still run into a trademark dispute later.

When you need a DBA

A DBA (doing business as) lets you operate under a name that isn't your legal name. A sole proprietor called Maria Lopez who wants to trade as Sunrise Bakery would usually file one. Depending on where you are, that filing goes to the state, the county or the city.

Keep in mind a DBA is just a name. It doesn't create a separate legal entity or protect your personal assets.

Step 3: Appoint a registered agent

LLCs, corporations and most partnerships need a registered agent before they can file. This is the person or company that receives legal papers and official mail for your business, and they must have a physical address in the state.

You can be your own agent if you live in the state and are reachable during business hours. Many owners pay a registered agent service instead, which keeps their home address off public records and helps if they travel or live elsewhere.

Step 4: File your formation documents with the state

This is the actual registration. For an LLC the document is often called Articles of Organization. For a corporation it's usually Articles of Incorporation. You'll typically list the business name, address, registered agent and the people organising it.

Most states let you file online through the Secretary of State or a similar business agency. Some still want paper forms. Fees vary by state, but the SBA notes that the total cost to register is usually under $300.

Register in the state where you actually operate. If you form somewhere else, you'll normally also have to register as a foreign business in your home state, which means paying two sets of fees and filing two sets of annual reports. The same applies if you later expand into another state where you have staff, an office or significant sales.

Write an operating agreement

Many states don't require an LLC operating agreement, but you should still have one. It sets out who owns what, how decisions are made and what happens if an owner leaves. Banks sometimes ask for it, and it's far easier to agree on these things before there's money or a dispute involved.

Step 5: Get your EIN from the IRS

An EIN (Employer Identification Number) is your business's federal tax ID. You'll need it to file taxes, hire employees and, in most cases, open a business bank account. Even a single-owner LLC with no staff usually gets one.

Applying is free. Use the online tool on the IRS website and you'll get the number as soon as your application is verified. Plenty of websites charge a fee to do this for you, and there's no reason to pay them.

If you don't have a Social Security number or ITIN, for example because you live outside the US, you can't use the online tool. You apply with Form SS-4 instead.

Step 6: Register for state and local taxes

Forming the business with the state doesn't automatically register you for state taxes. Depending on what you sell and where, you may need a sales tax permit, an account for payroll withholding once you hire, or both.

Some states also require an initial report to the state tax or franchise tax board soon after you register, often within 30 to 90 days. Check your state's revenue department so you don't miss it.

Step 7: Get the licences and permits you need

You generally don't register your business with a city or county, but you may need a licence or permit from them to operate. A home-based consulting business might need very little. A food truck, salon or construction company might need several.

Federal licences apply only to certain regulated activities, such as alcohol, firearms or aviation. For everything else, start with your city or county clerk and your state's licensing agency.

What changed for BOI reporting

If you read older guides, you'll see warnings about filing a beneficial ownership information (BOI) report with FinCEN under the Corporate Transparency Act. That's no longer required for most small businesses.

A FinCEN final rule, effective August 14, 2026, removed all entities formed under US law from the reporting requirement. If you form your LLC or corporation in a US state, you don't file a BOI report.

The rule still applies to companies formed under foreign law that register to do business in a US state. Those companies must file within 30 days of their registration taking effect, and they only report owners who are not US persons.

Step 8: Open a business bank account

Keep business money separate from personal money from day one. It makes bookkeeping and tax time far easier, and for an LLC or corporation it helps protect the liability shield you just paid for. Banks typically ask for your formation documents, your EIN and identification for the owners.

Keep your registration in good standing

Registration isn't a one-time event. Most states require an annual or biennial report and a fee to keep your business active, and missing it can lead to penalties or the state dissolving your company. Put the due date on your calendar the day your approval arrives.

Also update the state if your address, registered agent or owners change. And if you're unsure about taxes, liability or which structure suits you, a session with a local accountant or business attorney before you file usually costs less than fixing a wrong choice later.