Steps to Registering a Business

Whether you are starting a new business or expanding and existing business, you will need to follow some basic steps to ensure you have all the necessary licenses, permits and registrations needed to legally operate.

1. Determine the Legal Structure of Your Business

   This step involves organizing your business as a legal entity. There are several options to consider, and all have different legal, financial and tax considerations. The right legal structure for your business depends on a number of factors including the level of control you want to have, your business' vulnerability to lawsuits, and financing needs.

   The legal structure you choose will determine further registration requirements. Once you choose a legal structure, you may have to filing registration forms with your state and/or local government. The requirements vary from state to state.

2. Register Your Business Name

   "Doing Business As," "DBA," "Assumed Name," "Fictitious Name" ... all these are used to describe the process of registering your business' legal name.

   By default, the legal name of a business is the name of the person or entity that owns a business. If you are the sole owner of your business, its legal name is your full name. If your business is a partnership, the legal name is the name given in your partnership agreement or the last names of the partners. For limited liability corporations (LLCs) and corporations, the business' legal name is the one that was registered with the state government.

   Your business' legal name is required on all government forms and applications, including your application for employer tax IDs, licenses and permits. However, if you want to open a shop or sell your products under a different name, then you may have to file an "assumed name" registration form with your state and/local government.

3. Obtain Your Federal Tax ID

   Employers with employees, business partnerships, and corporations and other types of organizations, must obtain an Employer Identification Number (EIN) from the U.S. Internal Revenue Service. The EIN is also known as an Employer Tax ID and Form SS-4:

   U.S. Internal Revenue Service
   Phone: 1-800-829-4933

   • Employer Identification Number
   • An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN. You may apply for an EIN in various ways, and now you may apply online. This is a free service offered by the Internal Revenue Service. You must check with your state to make sure you need a state number or charter.
   • Apply for an EIN Online

     Check Out Our Interview-style Application

     No need to file a Form SS-4. We ask you the questions and...