Quick Answer

Business registration involves choosing a business structure, filing formation documents with your state, obtaining an EIN from the IRS, and registering for state/local taxes and licenses. The process takes 1-4 weeks and costs $50-800 depending on your state and business structure. Most businesses can complete registration without a lawyer using online services.

Key Takeaways

Introduction

Business registration is the legal process of establishing your company as a recognized entity. Proper registration protects your personal assets, enables you to open business bank accounts, and ensures compliance with tax laws.

This guide covers the complete registration process for 2026, including recent changes and state-specific considerations.

Step 1: Choose Your Business Structure

Sole Proprietorship

Pros:

Cons:

Best for: Low-risk businesses, freelancers, consultants

Limited Liability Company (LLC)

Pros:

Cons:

Best for: Most small businesses, real estate investors, consultants

Corporation (C-Corp)

Pros:

Cons:

Best for: Startups seeking venture capital, companies planning to go public

S-Corporation

Pros:

Cons:

Best for: Profitable businesses wanting to reduce self-employment tax

Step 2: Choose and Reserve Your Business Name

Name Requirements

Your business name must:

Search Steps

  1. Search state business registry (usually Secretary of State website)
  2. Check USPTO trademark database (US Patent and Trademark Office)
  3. Search domain availability (GoDaddy, Namecheap)
  4. Check social media handles (Twitter, LinkedIn, Instagram)
  5. Google the name (see what comes up)

Name Reservation

If you’re not ready to file formation documents immediately, most states allow you to reserve a name for 60-120 days for a small fee ($10-50).

Step 3: File Formation Documents

For LLC: Articles of Organization

Required information typically includes:

Filing methods:

Filing fees by state (as of 2026):

StateFiling FeeProcessing Time
California$703-5 business days
Texas$3003-5 business days
Florida$1251-3 business days
New York$2001-2 weeks
Delaware$901-3 business days
Wyoming$1003-5 business days
Nevada$4251-3 business days

For Corporation: Articles of Incorporation

Required information:

For Sole Proprietorship

If operating under your legal name, no registration required in most states. If using a trade name (DBA - “Doing Business As”):

Step 4: Obtain an EIN (Employer Identification Number)

An EIN is required for:

How to Apply

Online (fastest):

  1. Go to IRS.gov/EIN
  2. Complete application (15 minutes)
  3. Receive EIN immediately

By Mail:

By Fax:

Important: Only one EIN per responsible party per day for online applications.

Step 5: Register for State Taxes

Sales Tax Registration

Required if you sell taxable goods or services. Register with your state’s Department of Revenue.

You’ll receive:

Employer Taxes (if hiring)

Register for:

State Income Tax

If your state has corporate income tax:

Step 6: Obtain Local Licenses and Permits

Business License

Most cities/counties require a general business license. Cost: $50-500/year.

Professional Licenses

Required for regulated professions:

Check with your state licensing board.

Zoning Permits

Verify your business location is properly zoned before signing a lease.

Health Permits

Required for:

Sign Permits

Required for exterior signage in most jurisdictions.

Step 7: File Beneficial Ownership Information (NEW 2026 Requirement)

As of January 1, 2024, most businesses must file Beneficial Ownership Information (BOI) with FinCEN (Financial Crimes Enforcement Network).

Who Must File

Most corporations, LLCs, and other entities created by filing with a secretary of state.

Exemptions

Required Information

For each beneficial owner (25%+ ownership or substantial control):

Filing Deadline

Failure to file: Civil penalties up to $500/day, criminal penalties up to $10,000 and/or 2 years imprisonment.

Step 8: Annual/Biennial Requirements

State Reports

Most states require annual or biennial reports:

Common due dates:

Registered Agent

Maintain a registered agent:

Can be:

FAQ Section

1. Do I need a lawyer to register my business?

Answer: No. Most businesses can register without legal assistance using:

Consider a lawyer for complex structures, multi-state operations, or significant contracts.

2. Which state should I register in?

Answer: Generally, register where you physically operate. While Delaware and Nevada offer business-friendly laws, you’ll still need to “foreign qualify” in states where you operate, adding cost and complexity.

Exceptions: If seeking venture capital, Delaware corporations are preferred by investors.

3. How much does business registration cost?

Answer: Total costs include:

Budget: $200-1,500 for initial registration.

4. Can I register a business with bad credit?

Answer: Yes. Business registration doesn’t require a credit check. However:

5. How long does registration take?

Answer: Timeline varies:

Total: 1-6 weeks depending on state and method.

6. Can I register a business from home?

Answer: Yes. Many businesses are home-based. Requirements:

7. What’s the difference between registering and incorporating?

Answer:

All involve filing documents with the state.

8. Do I need to register in multiple states?

Answer: If you have significant business presence in multiple states (“nexus”), you may need to:

Nexus triggers include:

9. What happens if I don’t register my business?

Answer: Consequences include:

10. Can I change my business structure later?

Answer: Yes. Common conversions:

Consider conversion when:

Conclusion

Business registration is straightforward when broken into steps. Start by choosing your structure, then file with your state, obtain an EIN, and complete tax and license registrations. The entire process typically takes 1-4 weeks and costs $200-1,500.

Next step: Use our free checklist tool to track your registration progress step-by-step.