Key Takeaways

  • Company registration varies by state and may include local, state, and federal requirements.
  • Choosing the right business structure is crucial and affects taxation, liability, and reporting requirements.
  • Business name registration may involve filing a DBA (Doing Business As) in certain jurisdictions.
  • Obtaining necessary permits and licenses is mandatory depending on industry and location.
  • Registering with tax authorities ensures compliance with federal and state tax obligations.
  • Certain states have online business registration portals for streamlined processing.
  • Failure to complete all registration steps can result in penalties, fines, or legal complications.Registering a Company: What Is It?

Registering a Company: What Is It?

Registering a company means taking the steps necessary to both form an entity for your business in a state and obtain the permits and licenses needed to operate the business.

Each step in registering a business requires that you consider your options, complete and file the necessary forms and then pay the filing and registration fees. Unless your business structure, ownership and activities are simple, you will need the advice of an accountant and a lawyer to register a company.

Understanding State and Local Registration Requirements

Business registration requirements vary significantly across states and municipalities. While some businesses only need to register at the state level, others must comply with county and city regulations. Here’s what to consider:

  • State Registration: Most businesses must register with the Secretary of State or a similar business agency.
  • Local Registration: Some cities or counties require additional registration, especially for certain industries.
  • DBA Registration: If a business operates under a different name than its legal entity, it must register a "Doing Business As" (DBA) name with the appropriate local or state office​.
  • Industry-Specific Permits: Some businesses, such as food service, finance, or healthcare, require special licenses beyond basic registration.

Business owners should check with state and local agencies to confirm all requirements before launching their company.

Steps for Registering a Company

1. Choose and Reserve a Company Name

You’ll need to choose a name for your company after searching the state’s database of names used by companies formed in the state and companies formed in other states that have qualified to do business there. To avoid confusion, state laws prohibit two companies from having similar names, so think of a few options you are willing to use in case your top choice is unavailable. Depending on the state, corporations may need to have “Incorporated,” “Corporation,” “Inc.” or “Corp.” as part of their names, and LLCs may need to use “LLC” or “Limited”  or something similar in their names.

If you decide to operate under a separate name, you may need to file an “assumed name/fictitious name/doing business as” form with your state and/or local governments.

2. Form a Business Entity

A lawyer can advise you about whether it makes sense to conduct your business as a sole proprietorship, limited partnership (LP), general partnership (GP), limited liability company (LLC) or a corporation. You will need to consider the planned activities of your company, the number of owners and investors, your need for limited liability and whether your company should be taxed as a corporation (taxed on its income separately as an entity) or as a partnership (the company’s income is passed to the owners who each pay individual taxes on their share of the income).

You will also need to decide whether to form your company in the state where the business will be physically located or in another state, like Delaware, where laws are favorable to businesses. (If you choose a state like Delaware with no operating connection to your company, you will need to qualify to do business in the state where your company is physically located. This requires additional filings and registration fees.)

After you settle on your type of business entity, you will then need to file the appropriate formation documents with the state.

3. Obtain a Federal EIN

You’ll need to file a simple form with the Internal Revenue Service (IRS) to obtain a federal Employer Identification Number (EIN) for your company. This is the business equivalent of a Social Security number to identify your company for federal tax purposes.

4. Know Your State Tax Registrations

If your company will be collecting sales tax from customers or will have employees, you’ll need to obtain tax registrations from the states where you do business and where your employees reside. You must check with your state to see if a state tax identification number is necessary.

5. Get Business Licenses and Tax Permits

Your company may need business permits and/or licenses to operate in the towns and cities in which it has offices, stores or manufacturing or storage facilities, as well as local tax permits if those towns and cities levy business taxes. You may need to have licenses at the federal, state and local levels (depending on what type of business you have).

6. Apply and Register Your Trademark and Business Mark

If appropriate, you should consider protecting your company name, slogans, and logos by applying for a federal trademark. You may also want to consider registering your trademark on a state level which is typically simpler, faster, and less expensive.

7. Perform Annual Filings and Permit Renewals

Most companies are required by state and local laws to file annual reports and to renew their tax and other registrations periodically. Make sure you understand the rules of your state and municipality so that your business remains compliant with all laws that govern.

Registering for Business Taxes

Businesses must register with federal and state tax authorities to comply with tax obligations. Essential tax registrations include:

  1. Employer Identification Number (EIN): Required for businesses with employees and corporations (even with one owner).
  2. State Sales Tax Permit: If selling taxable goods or services, a business must register for a sales tax ID with the state tax agency.
  3. Payroll Tax Registration: Employers must register for state payroll taxes, including unemployment and withholding tax.
  4. Federal and State Tax Filings: Some states require separate business tax filings in addition to federal returns​.

Failure to register for tax compliance can result in penalties and legal issues, making early registration critical.

Business Licenses and Industry-Specific Permits

Certain industries and business activities require specific permits to operate legally. The most common business licenses include:

  • General Business License – Required in many states and municipalities to legally operate.
  • Professional Licenses – Required for regulated professions like law, accounting, real estate, and medicine.
  • Health and Safety Permits – Businesses handling food, alcohol, or hazardous materials may need additional approvals.
  • Zoning Permits – Businesses operating in specific locations may need zoning approval from city planning departments.
  • Federal Permits – Some industries (e.g., aviation, broadcasting, firearms) require federal approval in addition to state licensing​.

Business owners should verify licensing requirements at state, local, and federal levels before beginning operations.

State-Specific Business Registration Rules

Each U.S. state has different business registration laws, filing fees, and processing times. Some states allow online registration, while others require paper filings. Here are a few key examples:

  • California: Requires businesses to file Articles of Incorporation (for corporations) or Articles of Organization (for LLCs) with the California Secretary of State​.
  • New York: LLCs must publish a registration notice in two newspapers within 120 days of formation.
  • Texas: Business owners must register with the Texas Comptroller of Public Accounts for state tax compliance.
  • Florida: Offers an online portal for business registration and requires annual reports for compliance.

Business owners should review their state’s business registration portal or consult with legal professionals to avoid delays.

Frequently Asked Questions

1. Do I need to register my business with both state and local agencies? It depends on your business location. Some states only require state registration, while others mandate local licensing as well.

2. How long does it take to register a company? Processing times vary by state. Online registration may take a few days, while paper filings can take several weeks.

3. Do I need an EIN if I am a sole proprietor? Sole proprietors without employees can use their Social Security Number for taxes, but an EIN is recommended for banking and legal purposes.

4. What happens if I don’t register my business? Operating an unregistered business can result in fines, legal action, and loss of liability protection.

5. Are there tax benefits to registering a company? Yes. Registered businesses can access tax deductions, credits, and liability protections not available to unregistered sole proprietors.

Support for Business Registrations

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