Five Steps to Registering Your Business
Whether you are starting a new business or expanding an existing business, these basic steps will help ensure that you have all the necessary licenses, permits and registrations to legally operate.
1. Determine and Register the Legal Structure of Your Business
First, you need to organize your business as a legal entity. There are several options to consider, including a limited liability company, a sole proprietor or a partnership, each of which have different legal, financial and tax considerations. As you review your legal structure options, you’ll need to consider a number of factors, including the level of control you want to have, your business' vulnerability to lawsuits and financing needs. Visit the Incorporating Your Business page to learn more.
Once you have determined a structure, read more about how to register and file paperwork your business with state agencies.
2. Register Your Business Name
If you choose to name your business with a fictitious name or name other than your full name, then you will need to register it with the appropriate state government authorities as a “Doing Business As” name.
Visit the Registering Your Doing Business As Name guide to learn about the requirements in your state.
3. Obtain Your Federal Tax ID
If you have employees or are structured as a business partnership or corporation (and other types of organizations), you’ll need to obtain an Employer Identification Number (EIN) or Employer Tax ID from the IRS for tax reporting purposes. Visit the IRS website to find out if you need an EIN.
You can apply for an EIN by phone or online:
- IRS: 1-800-829-4933
- Guide to the Employer Identification Number
- Apply for an EIN Online
4. Obtain State Tax IDs
Just as you must have a Federal Tax ID, you will also need to obtain tax IDs and permits from your state's revenue agency to cover obligations such as sales, income and employment taxes. Visit the State and Local Tax page to learn more about these registration requirements.
5. Obtain Licenses and Permits
Most businesses are required to obtain some type of business license or permit to legally operate. You may also need to obtain a federal license if your business is involved in activities supervised and regulated by a federal agency.
Visit SBA’s Business Licenses and Permits tool to find requirements for your business.
Related Resources
- SBA Community – Starting & Registering a Business Discussion Board
- 10 Steps to Hiring your First Employee
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