How to Register and Legally Start a Business in the USA (2025 Guide)

 

✅ Step 1: Choose a Business Structure

Your business structure affects taxes, liability, and registration steps. Here are the most common types:

Structure	Best For	Liability	Taxation
Sole Proprietorship	Solo entrepreneurs	Personal liability	Pass-through (personal income)
LLC (Limited Liability Company)	Most small businesses	Limited liability	Pass-through or corporate
Corporation (C or S Corp)	Larger companies/startups	Strong liability protection	Separate corporate taxes
Partnership	Two or more owners	Shared liability	Pass-through

💡 LLC is the most popular for new businesses due to its flexibility and liability protection.

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✅ Step 2: Pick a Business Name

Choose a unique name that isn’t already in use or trademarked.

• Search name availability at your state's Secretary of State website

• Check domain name availability for your website

• Optionally, check the U.S. Patent and Trademark Office (USPTO) for federal trademark conflicts: https://www.uspto.gov/trademarks

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✅ Step 3: Register Your Business

Registration requirements vary by state and structure:

For an LLC or Corporation:

• File Articles of Organization (LLC) or Articles of Incorporation (Corp) with your state government

• Pay a filing fee (varies by state, usually $50–$300)

• Choose a registered agent (a person or service that receives legal documents)

For a Sole Proprietorship or Partnership:

• You may not need to file formation documents, but may still need:

  • A "Doing Business As" (DBA) name registration if using a different name

  • A business license in your city/county

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✅ Step 4: Apply for an EIN (Employer Identification Number)

An EIN is like a Social Security number for your business. You’ll need it to:

• Open a business bank account

• Hire employees

• File federal and some state taxes

Apply FREE at the IRS website: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

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✅ Step 5: Get the Required Licenses and Permits

Depending on your industry and location, you may need:

• General business license (city or county)

• Sales tax permit (if selling physical goods)

• Professional licenses (plumbers, contractors, etc.)

• Health permits (for food businesses)

🔍 Check with your local Small Business Development Center (SBDC) or city hall for details.

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✅ Step 6: Open a Business Bank Account

To keep personal and business finances separate:

• Open a dedicated business checking account

• Consider getting a business credit card

• Set up accounting software (like QuickBooks, Wave, or FreshBooks)

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✅ Step 7: Set Up Taxes

Your business may owe:

• Federal income tax

• Self-employment tax (for sole proprietors, freelancers, etc.)

• State and local taxes

• Sales tax (if selling taxable goods/services)

📌 Consider hiring an accountant or using tools like TurboTax for Business to stay compliant.

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✅ Step 8: Get Business Insurance

Protect your business from risks and liabilities. The most common policies include:

• General liability insurance

• Professional liability (errors & omissions)

• Business property insurance

• Workers’ comp insurance (if you have employees)

🛡️ Talk to an insurance agent or use platforms like NEXT Insurance or Hiscox.

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✅ Bonus Step: Start Marketing Your Business

• Build a professional website (using tools like Wix, WordPress, or Shopify)

• Create Google Business and Yelp listings

• Set up social media profiles

• Collect reviews and testimonials

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🧾 Summary Checklist

✅ Choose your business structure
✅ Pick and register a business name
✅ Register with your state (LLC/Corp)
✅ Get your EIN from the IRS
✅ Apply for any local licenses/permits
✅ Open a business bank account
✅ Set up your taxes and accounting
✅ Get business insurance
✅ Promote your business!