How to register your business, step by step

Once an idea starts making real money, you make it official by registering it. The word 'register' covers a handful of separate steps that beginners often jumble together — the name, the legal structure, a tax ID, licenses, and a bank account. Done in the right order, it is a checklist, not a maze. This article lays out that order in plain language. Rules vary by state and business type, so treat this as general education and confirm specifics with your state or a professional.

The order that saves you headaches

1. 1
   Pick and check your name

   Choose a business name and confirm it is available in your state's business registry (and not obviously trademarked). Registering a name is separate from protecting it — a companion article on naming covers this.

2. 2
   Choose your legal structure

   Decide whether you are a sole proprietor, LLC, or corporation. This choice shapes every step that follows, because it determines what you file.

3. 3
   Register the structure with your state

   A sole proprietor may need little or nothing; an LLC or corporation files formation paperwork with the state and pays a fee.

4. 4
   Get an EIN if you need one

   An EIN (Employer Identification Number) is a free federal tax ID for your business, issued by the IRS. You need one if you form an LLC or corporation, hire employees, or want to avoid using your Social Security number. Applying is free and quick.

5. 5
   Get licenses and permits

   Depending on your work and location, you may need a general business license, industry permits, or local registration. Skipping these can mean fines.

6. 6
   Open a business bank account

   Once you have your registration and EIN, open a dedicated business account so your money stays legally and practically separate from personal funds.

What 'register' does not automatically do

• It does not trademark your name — registration and trademark protection are different things.
• It does not handle your taxes — you still track income and set money aside.
• It does not create liability protection unless you actually form an entity like an LLC and keep finances separate.
• It does not replace needed licenses — a registered business can still be operating illegally without the right permits.

How much does it cost?

Costs vary widely by state and structure. A sole proprietor might register a trade name for a small fee or pay nothing. An LLC typically has a state filing fee and sometimes an annual fee. An EIN is free. Licenses range from free to a few hundred dollars depending on your industry. Because figures change and differ by location, check your own state's current fees rather than relying on a number you read online.

The bottom line

Registering a business is a sequence, not a single event: check your name, choose your structure, file with the state, get an EIN if needed, secure licenses, and open a business bank account. Do it in that order and each step feeds the next. Most of it you can handle yourself on official government sites, and keeping every confirmation in one folder saves you real trouble down the road. When the stakes or the rules get complicated, a short consult with a professional is money well spent.