How to Register a Business in the US (2026)

Registering a business in the US takes as little as one day in some states - and as long as several weeks in others. The process itself is not complicated, but making the wrong choice early - picking the wrong structure, filing in the wrong state, skipping a required step - can mean starting over and losing both time and money. This guide walks you through exactly what to do, in what order, and what each step actually costs.

IN THIS GUIDE

1. What does "registering a business" actually mean?
2. Step 1 - Choose your business structure
3. Step 2 - Pick your formation state
4. Step 3 - Choose and check your business name
5. Step 4 - Appoint a registered agent
6. Step 5 - File your formation documents
7. Step 6 - Get your EIN from the IRS
8. Step 7 - Open a business bank account
9. Step 8 - Get your business licenses and permits
10. How much does it cost to register a business?
11. How long does business registration take?
12. Frequently asked questions

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What Does "Registering a Business" Actually Mean?

When people say "register a business," they usually mean one of two different things - and it is worth separating them before you start.

Filing a business entity means creating a legal structure - an LLC, a corporation, or a partnership - by submitting formation documents to your state. This creates a separate legal entity that can own assets, sign contracts, and be held liable on its own. Not all business types require this step.

Registering a business name (also called a DBA, "doing business as," or trade name) means officially recording that your business operates under a specific name. Sole proprietors and partnerships often do this without forming a separate legal entity.

Most small business owners are asking about the first option - forming an LLC or corporation. That is what this guide covers. If you are a sole proprietor just registering a name, your state or county clerk's office handles that separately.

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Step 1 - Choose Your Business Structure

Your business structure determines your personal liability, how you file taxes, and what paperwork you need to maintain. This is the most important decision in the entire registration process.

Sole Proprietorship

No registration required. You operate under your own name (or a DBA name), report income on your personal tax return, and bear full personal liability for all business debts and lawsuits. Simple - but zero protection.

LLC (Limited Liability Company)

The most popular structure for small businesses. An LLC gives you personal liability protection - your personal assets stay separate from business debts and lawsuits - while keeping taxes simple through pass-through taxation. Brendat forms LLCs in all 50 states, including single-member LLCs, multi-member LLCs, and LLCs owned by non-US residents.

Corporation (C-Corp or S-Corp)

Corporations offer strong liability protection and can issue stock to investors - which is why startups raising venture capital almost always incorporate as C-Corps in Delaware. More complex to maintain (board meetings, shareholder records, annual resolutions), and C-Corps face double taxation. S-Corps avoid double taxation but have ownership restrictions.

Nonprofit Corporation

For organizations with a charitable, educational, or community mission. Nonprofits can qualify for federal tax-exempt status under IRS Section 501(c)(3). Requires both state incorporation and a separate IRS application - a longer process than a standard business registration.

Quick comparison
For most small business owners, freelancers, consultants, and entrepreneurs, an LLC is the right choice. It protects your personal assets, keeps taxes simple, and costs less to maintain than a corporation. If you are raising money from investors or planning to go public, a C-Corp (usually in Delaware) is the path.

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Step 2 - Pick Your Formation State

You can form your LLC or corporation in any US state - you do not have to form it in the state where you live or operate. But for most small business owners, forming in your home state is the right move.

Here is why: if you form in Delaware or Wyoming but operate in California or New York, you will need to register as a foreign LLC in your operating state anyway. That means paying formation fees in two states, maintaining two registered agents, and filing two sets of annual reports. The popular "form in Delaware" advice is mostly relevant for startups seeking investor capital - not for a local service business or online store.

That said, some states genuinely offer advantages for specific situations:

• Wyoming - No state income tax, strong privacy, very low fees. Great for online businesses and holding companies. See Wyoming LLC benefits.
• Delaware - Preferred by venture-backed startups and investors due to its specialized Court of Chancery and flexible corporate law.
• Nevada - No state income tax, no information sharing agreement with the IRS, strong liability protection. See Nevada LLC benefits.
• New Mexico - Allows completely anonymous LLCs with no public member disclosure. State fee is just $50.

If you are a non-US resident starting an online business, Wyoming and New Mexico are the most popular choices. If you are operating locally, form in your home state.

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Step 3 - Choose and Check Your Business Name

Your business name must be unique within your formation state - no other registered LLC or corporation can have the same name. Before you fall in love with a name, check availability through your state's Secretary of State website.

LLC names must include a designator like "LLC," "L.L.C.," or "Limited Liability Company." Corporation names must include "Inc.," "Corp.," or "Corporation."

Beyond state availability, also check:

• Federal trademark database (USPTO) - A name available in your state could still be trademarked nationally
• Domain availability - Even if you are not building a website now, securing the .com domain protects your brand
• Social media handles - Consistent branding across platforms matters for marketing

Use Brendat's free LLC name checker to verify availability in your target state in seconds.

Important
Registering a business name with your state does NOT give you trademark rights. If brand protection matters for your business, consider filing a federal trademark after formation. Brendat offers trademark filing services starting at $149 + USPTO fees.

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Step 4 - Appoint a Registered Agent

Every LLC and corporation in the US must have a registered agent - a person or service with a physical street address in your formation state who can receive legal documents, tax notices, and government correspondence on behalf of your business.

You can serve as your own registered agent if you have a physical address in the formation state and are available during business hours. But most business owners use a registered agent service because:

• Your address becomes public record - a registered agent service keeps your home address private
• You might not always be available during business hours to receive documents
• If you form in a state where you do not live, you legally need a separate registered agent there

Brendat provides registered agent service in all 50 states, included free for the first year with our Standard and Premium formation packages.

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Step 5 - File Your Formation Documents

This is the official step that creates your legal entity. What you file depends on your business structure:

• LLC - Articles of Organization (also called Certificate of Formation or Certificate of Organization in some states)
• Corporation - Articles of Incorporation (also called Certificate of Incorporation)
• Nonprofit - Articles of Incorporation (nonprofit version) + IRS Form 1023 for tax-exempt status

You file these documents with your state's Secretary of State office (or equivalent - for example, Maryland uses the State Department of Assessments and Taxation). Most states now accept online filings.

State filing fees range from $50 in states like Arizona, Colorado, and New Mexico to $300 in Texas and $500+ in Massachusetts. See Brendat's business formation service - we handle the filing for you, check for errors, and confirm your entity is approved.

After approval, you will receive a stamped copy of your formation documents - this is your official proof that your business exists. Keep it somewhere safe.

For LLCs - also create an Operating Agreement. Most states do not legally require one, but every LLC should have one. The Operating Agreement is your internal rulebook - it defines ownership percentages, how profits are split, what happens if a member leaves, and how major decisions are made. Without one, your state's default LLC rules apply, which may not match your intentions.

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Ready to Register Your Business?

Brendat handles everything - Articles of Organization, Registered Agent, EIN, and Operating Agreement. Start at $0 + state fee.

See LLC Packages

All 50 states - 100% accuracy guarantee - Takes less than 10 minutes

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Step 6 - Get Your EIN from the IRS

An EIN (Employer Identification Number) is essentially a Social Security Number for your business. You need it to:

• Open a business bank account
• Hire employees
• File federal and state business taxes
• Apply for business licenses in many states
• Apply for business credit

For US residents and citizens, applying for an EIN is free and takes about 10 minutes on the IRS website. You get your EIN instantly after submitting the online application.

For non-US residents and foreign nationals, the online IRS application requires a US Social Security Number or ITIN. Without one, you need to apply via fax or mail using IRS Form SS-4 - which can take 4 to 8 weeks. Brendat's Standard and Premium packages include EIN filing on behalf of non-residents to simplify this process.

Single-member LLC note
If you are the only owner of your LLC and have no employees, you technically do not need an EIN - you can use your Social Security Number instead. But getting an EIN anyway is strongly recommended. It keeps your personal SSN off business documents and makes opening a business bank account much simpler.

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Step 7 - Open a Business Bank Account

This step does not involve any government office, but it is essential to complete before you start operating. A dedicated business bank account does two critical things:

First, it keeps your business and personal finances completely separate - which is the foundation of the liability protection your LLC or corporation provides. If you mix personal and business money in the same account, a court could "pierce the corporate veil" and hold you personally responsible for business debts.

Second, it makes accounting and tax filing much simpler - every business transaction goes through one account, not scattered across personal cards and accounts.

To open a business bank account, you typically need your EIN, your formation documents (Articles of Organization), and your Operating Agreement. Most major banks offer business checking accounts - some online banks like Mercury, Relay, and Bluevine specialize in small business banking with no monthly fees.

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Step 8 - Get Your Business Licenses and Permits

Forming an LLC or corporation creates your legal entity - but it does not automatically give you permission to operate in your industry or location. Depending on your business type and where you operate, you may need:

• General business license - Required by most cities and counties for any operating business
• State professional license - Required for regulated industries: healthcare, real estate, finance, construction, food service, childcare, and others
• Federal licenses or permits - Required for businesses in agriculture, alcohol, firearms, broadcasting, transportation, or investment advising
• Seller's permit / sales tax permit - Required in most states if you sell physical goods
• Home occupation permit - Required in many cities if you operate a business from your home
• Zoning permits - Required if you operate from a commercial location

License requirements vary widely by state, city, and industry. The SBA's Business License and Permit database is a good starting point for federal requirements. For state and local requirements, check your state's official business portal.

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How Much Does It Cost to Register a Business?

The total cost depends on your state and what services you use. Here is a realistic breakdown for forming an LLC:

• State filing fee - $50 to $500 depending on the state (e.g., Wyoming $100, Florida $125, Texas $300)
• Registered agent - $0 to $299/year (included free in Brendat's Standard and Premium packages for year one)
• EIN - Free from the IRS (included in Brendat's paid packages)
• Operating Agreement - $0 with a template, or included in formation packages
• Formation service fee - $0 with Brendat's Basic package, $149 for Standard, $299 for Premium
• Business license - Varies by city and state, often $50 to $400/year

For a realistic estimate, most small business owners spend $100 to $500 total for state filing fees and basic formation costs in their first year. Read our full guide on LLC costs by state.

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How Long Does Business Registration Take?

Processing times vary significantly by state and filing method. Standard processing ranges from same-day approval (Wyoming, Delaware, New Mexico) to 2 to 4 weeks (California, New York). Most states offer expedited processing for an extra fee if you need faster approval.

• Same day to 24 hours - Wyoming, Nevada, Delaware (online), New Mexico
• 3 to 7 business days - Florida, Texas, Georgia, Colorado
• 2 to 4 weeks - California, New York, Illinois (standard processing)

Once your formation documents are approved, getting your EIN takes another 10 minutes (online for US residents) or 4 to 8 weeks (by mail for non-residents). Business bank accounts typically open within 1 to 3 business days after you have your EIN and formation documents.

Brendat tip
If you need your LLC approved quickly, Wyoming and Delaware are the fastest states - often approving online filings within 24 hours. For businesses that operate locally, many states also offer same-day or next-day expedited options for an additional fee.

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Frequently Asked Questions

Do I need to register my business if I am a sole proprietor?

If you operate under your own legal name, no registration is required for a sole proprietorship. If you want to use a different business name (like "Sunrise Consulting" instead of "John Smith"), most states require you to file a DBA (doing business as) or trade name registration with your county or state. But you have zero liability protection as a sole proprietor - an LLC is almost always a smarter choice once you have any customers.

Can a non-US resident register a business in the United States?

Yes. There is no citizenship or residency requirement to form an LLC or corporation in the US. Non-residents most commonly form in Wyoming, New Mexico, Delaware, or Florida. You will need a US registered agent (Brendat provides this in all 50 states), and you will need to apply for an EIN by fax or mail since the online IRS application requires a US Social Security Number.

What is the difference between an LLC and a corporation?

Both provide personal liability protection, but they differ in structure and taxation. An LLC is simpler to maintain, has no required meetings or resolutions, and is taxed as a pass-through entity by default. A corporation has a formal structure (shareholders, directors, officers), requires annual meetings and minutes, and can issue stock - making it easier to raise investment capital. Most small businesses choose an LLC. Startups seeking venture funding typically choose a C-Corp in Delaware.

What is a registered agent and do I need one?

Yes, every LLC and corporation is required by law to have a registered agent in the state where it is formed. A registered agent is a person or service that receives official legal and government documents on your behalf. You can serve as your own registered agent if you have a physical street address in the state and are available during business hours - but most business owners use a service to keep their home address private and ensure they never miss an important notice.

Can I register a business in a state where I do not live?

Yes. You can form your LLC or corporation in any US state regardless of where you live. However, if you actively operate your business in a different state (have employees, an office, or regular customers there), you will likely need to register as a "foreign LLC" in that operating state as well - which means paying fees and maintaining a registered agent in both states. For online businesses with no physical presence, this is not an issue.