Registering Your Business in Six Steps

Starting a new business is an exciting journey, and you're already on your way.

Even taking the first step toward bringing your business idea to life can be thrilling. And if you've already got a business name in mind, that's fantastic because that's exactly what we're here to discuss.

Registering Your Business

For aspiring U.S. based small business owners, registering your business is crucial in establishing a legitimate and legally protected business. While registering your business may sound overwhelming, we promise it's not as intimidating as it seems. In fact, taking care of these important steps now can save you time and money later.

Here are six steps to help you navigate the business registration process:

1. Choose a unique business name.

This is the fun part. Pick a memorable and catchy name that suits your brand identity. Next, check that your name isn’t already taken with your state’s business registry. And while you’re at it, it’s wise to check the official trademark database of the United States Patent and Trademark Office on a federal level too (you’d be surprised how many trademarks there are out there). If you’re using anything other than your own name or approved business name, you will need a Doing Business As (DBA) name. Finally, you must get your name out there and have a digital presence, so make sure to secure a domain name and register it. See what is available by searching an accredited registrar.‍

2. Select the right entity type.

The type of business entity you choose — sole proprietorship, partnership, limited liability company (LLC), S corporation, or C corporation — will significantly impact your legal and financial responsibilities, as well as your day-to-day operations. For more information on the different business entity types, how they function, and which one might be the best fit for your needs, we recommend taking our course, "Fundamentals of Business Types" on The Academy. ‍

3. Draft an operating agreement.

Once you've chosen your business entity, prepare an operating agreement. This document will establish your management structure and operational procedures, which is important for safeguarding against potential future disputes. There are many sites out there that make it easy, so don’t worry! Even if you don't plan on hiring employees, you'll still need to register for an Employer Identification Number (EIN) for tax purposes.‍

4. Choose your business location.

The physical location of your business can impact your tax obligations, compliance with local zoning laws, and the regulations you'll need to follow. Keep in mind, even if you plan to operate an online-only business, you’ll still need a business address in the state your business is registered.

5. Appoint a registered agent.

You will need to have a registered agent who will receive all your official paperwork and legal documents, unless you would like to do it yourself. A registered agent service can be beneficial if you want to keep your personal address private.‍

6. Register with state and federal agencies.

You made it to the final step! Finalize your registration with the necessary agencies. There are several services that offer a streamlined, seamless, and stress-free registration process.

Take some time to review the registration process in more detail at the U.S. Small Business Administration, as well as the website for your state's business registration requirements. Remember to update all of your registrations each year and follow the annual reporting guidelines. If you find yourself confused on the process, seek assistance by connecting with a registered agent or a legal professional to help guide you and answer any questions.

The above steps can seem daunting, but we assure you that you got this! Remember, you've already accomplished the most difficult step of deciding to start your own business. The registration process is just the next milestone on your entrepreneurial journey.