How to Register a Business in the United States

To register a business in the US, you choose a legal structure (sole proprietorship, LLC, S-corp, or C-corp), file formation documents with your state's Secretary of State, get a federal Employer Identification Number (EIN) from the IRS, open a dedicated business bank account, and secure any state and local licenses your industry requires. For most owners the practical path is a single-member LLC: it separates personal and business liability, is inexpensive to form (state filing fees typically run from about $50 to $500, for example), and creates the paper trail — an EIN, an operating agreement, and a business bank account — that lenders and revenue-based funders need to see before they will approve capital. You can complete the entire process online in most states, and the entity is usually active within a few business days.

Registration is not just a legal formality. From an underwriting seat, it is the moment your business becomes fundable. The EIN, the entity name on file, and — most importantly — the business bank account you open at registration are the exact records a funder pulls to verify who you are and how much revenue moves through your accounts.

The 7 steps to register a US business

Registration follows a predictable order. Skipping a step — or doing them out of sequence — is the most common reason owners get stuck at the bank or, later, at a funder's underwriting desk.

1. Choose a legal structure. Sole proprietorship, partnership, LLC, S-corporation, or C-corporation. This decides your liability exposure, how you're taxed, and what you file. Most small operators land on an LLC.
2. Pick and clear a business name. Search your state's business registry and the USPTO trademark database to confirm the name is available. If you'll operate under a different name, file a DBA ("doing business as").
3. File formation documents with your state. For an LLC, that's Articles of Organization; for a corporation, Articles of Incorporation. You file with the Secretary of State (or equivalent) and pay the state filing fee.
4. Appoint a registered agent. A person or service with a physical in-state address who receives legal and state mail on the business's behalf. Required for LLCs and corporations.
5. Get an EIN from the IRS. Free, online, and usually issued immediately. This is your business's federal tax ID — you'll need it to hire, to file taxes, and to open a bank account.
6. Open a business bank account. Use the EIN and your formation documents. This is the single most important step for future funding: your deposit history becomes your credit story.
7. Get licenses and permits. Federal, state, county, and city requirements vary by industry — sales tax permits, professional licenses, health permits, home-occupation permits, and more.

Choosing the right legal structure

The structure decision drives everything downstream — taxes, paperwork, personal liability, and how a funder reads your file. Here's the underwriter's shorthand.

• Sole proprietorship — No formal state filing needed; you and the business are legally the same. Cheapest and simplest, but you carry unlimited personal liability, and mixing personal and business banking makes you harder to underwrite.
• LLC — Separates personal assets from business debts, is taxed by default as a pass-through (profits flow to your personal return), and is flexible. This is the default recommendation for most Main Street businesses.
• S-corporation — Not a separate entity type but a tax election available to LLCs and corporations. Can reduce self-employment tax once profits are meaningful, at the cost of payroll and more filings.
• C-corporation — A fully separate taxpayer. Best if you plan to raise venture capital or issue stock; carries double taxation and the heaviest compliance load.

For funding purposes, what matters is that you have a registered entity with its own EIN and its own bank account. Revenue-based and MCA-style funders care far more about the cash flowing through that account than about which box you checked on the structure form.

State filing, the EIN, and your registered agent

These three items are the legal core of registration. Get them right and the rest is administrative cleanup.

State filing. You file formation documents with the state where you'll primarily operate. Fees and processing times vary widely by state — some process online filings same-day, others take one to two weeks, for example. Many states also charge an annual report or franchise fee to keep the entity in good standing; letting that lapse can quietly dissolve your entity, which will surface as a red flag in any funding review.

EIN. Apply directly at IRS.gov — it is free. Be wary of third-party sites that charge for what the IRS gives away. The EIN is issued instantly online during IRS business hours.

Registered agent. You can act as your own agent if you have a physical address in the state and keep normal business hours, or you can hire a commercial registered agent (commonly $100-$300 per year, for example). A commercial agent keeps your home address off the public record and ensures you never miss a legal notice.

Example: registration costs and timeline by entity type

The figures below are illustrative ranges to show relative cost and effort, not quotes. Actual fees depend on your state and industry.

Notice the pattern: protection and credibility rise with a little more cost and paperwork. For most owners, the single-member LLC hits the practical sweet spot.

Licenses, permits, and staying in good standing

Registering the entity is step one; operating it legally is ongoing. Depending on your industry and location you may need a general business license, a sales-and-use tax permit, professional or occupational licenses, health department permits, zoning or home-occupation approvals, and federal licenses for regulated activities (alcohol, firearms, transportation, agriculture, and more).

The mistake that hurts funding later is letting the entity fall out of "good standing" — missing an annual report, an unpaid franchise fee, or an expired license. When a funder or bank pulls your entity record and it reads "delinquent" or "administratively dissolved," the file stalls no matter how strong your revenue is. Put your state's annual deadlines on a calendar the day you register.

How registration sets you up to get funded

From an underwriting seat, registration is what makes a business bankable and fundable. Here's the direct line from filing paperwork to accessing capital:

• The EIN and entity name let a funder verify you exist and are in good standing.
• The business bank account is the single most important asset for financing. Revenue-based and MCA-style funders underwrite primarily on your bank deposits and revenue — not your credit score. Typically they want to see three to six months of statements showing consistent deposits.
• Clean separation of personal and business money makes your revenue legible. Commingled accounts are the top reason otherwise-healthy businesses get declined or discounted.

This is exactly why we point newly registered owners toward revenue-based / MCA marketplace funding once they have a few months of deposits on the books. Approval leans on bank deposits and revenue over credit, minimums start around $10,000, personal credit as low as a 500 FICO can still qualify, and funding often lands in 24 to 48 hours. It is never guaranteed — approval depends on your actual deposit history and cash flow — but it is the most accessible option for a young, revenue-generating business that a bank would consider too new. Learn more in our guide to small business funding options and our breakdown of revenue-based financing.

Decision framework: when to register now vs. wait

Registration always eventually pays off, but timing and structure should match your situation.

Register as an LLC now when:

• You're taking on customers, signing contracts, or handling client money — you want liability separation immediately.
• You plan to seek any outside capital in the next year; funders need the EIN, entity, and bank account in place.
• You want to build a business credit profile and revenue history that stands on its own.
• You're hiring employees or contractors.

It may be fine to stay a sole proprietor (for now) when:

• You're testing an idea with minimal revenue and no liability exposure.
• Your state's LLC fees are high and you're not yet generating income to justify them.

Avoid these registration mistakes:

• Skipping the separate bank account. This is the most damaging shortcut for future funding — it makes your revenue impossible to verify cleanly.
• Paying a third party for a free EIN. Go straight to IRS.gov.
• Over-structuring too early. Don't stand up a C-corp with a full compliance load before you have revenue that needs it.
• Letting the entity lapse. Missed annual filings undo the protection and credibility you paid for.