Registering a startup in the U.S. is a state and federal process: pick a legal structure, name the company, file entity paperwork with your state, secure tax IDs, and meet licensing and compliance requirements before launch. A systematic approach reduces risk and speeds banking, hiring, and go‑to‑market.
Definition
and overview
“Registering” means creating a legal entity under state law, registering your
name, obtaining federal and state tax IDs, and securing licenses or permits to
operate legally in your industry and location. The exact steps vary by state
and business model, but the sequence below works for most startups.
Step-by-step
registration
- Choose a business structure
Select between sole proprietorship, partnership, LLC, C‑corp, or S‑corp based on liability, taxes, fundraising, and founder goals; tech startups often choose C‑corps for venture financing, while small teams often start with LLCs for flexibility. - Choose and clear a business name
Check state availability and trademark risks, and align a domain name; many states require designators like “LLC” or “Inc.” for entities. - Register your entity with the
state
File Articles of Organization (LLC) or Articles of Incorporation (Corporation) with the Secretary of State or equivalent and pay fees; appoint a registered agent with an in‑state physical address. - Get federal and state tax IDs
Obtain a free Employer Identification Number (EIN) from the IRS online to open bank accounts, hire, and file taxes; then register with state revenue and labor agencies for sales tax, withholding, and unemployment accounts if applicable. - Apply for licenses and permits
Use federal, state, and local resources to identify industry‑specific licenses, health or zoning permits, professional permits, or home‑based business approvals before operating. - Open business banking and set up
accounting
Use your approved state documents and EIN to open a business bank account; implement bookkeeping, payroll, and expense controls to preserve liability protections and simplify tax filings. - Foreign qualification if
operating in multiple states
If you formed in one state but do business in another, register as a foreign entity in each additional state where you have nexus (employees, offices, frequent in‑person sales). - Maintain ongoing compliance
File annual/biennial reports, keep a registered agent, pay franchise/annual taxes where required, and calendar renewals and filings to stay in good standing.
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Federal
EIN: what to know
Apply online at the IRS site; U.S.-based founders can get an EIN immediately,
and international founders apply by phone or via Form SS‑4 by fax or mail if
they lack a U.S. principal office. Keep the EIN assignment notice for banks and
payroll providers.
Licenses and permits checklist
- Sales
tax seller’s permit if selling taxable goods/services.
- Employer
registrations for withholding and unemployment when hiring.
- Local
business license and zoning/home occupancy permits where required.
- Industry
credentials (e.g., food service, childcare, transportation).
C‑corp vs
LLC note
C‑corps are common for venture-backed startups due to preferred stock, option
plans, and investor familiarity; LLCs suit bootstrapped or pass‑through‑tax
focused teams and can convert later if fundraising demands it. Consider tax and
investor expectations when choosing.
Timeline
and costs
Expect state filing fees from tens to hundreds of dollars, plus registered
agent fees, license fees, and possible franchise/annual taxes; online approvals
can be same‑day to weeks depending on state and whether you choose expedited
service.
Quick
FAQs
- Do I need an EIN if I’m solo?
Generally yes for banking and 1099s; it’s free and immediate online for U.S.-based applicants. - Can non‑U.S. founders register?
Yes; process is similar, but EIN is typically obtained by phone with the IRS; banking and visas are separate considerations. - Do I need a registered agent?
Yes for LLCs and corporations; must have an in‑state physical address and business‑hours availability. - What if I operate in multiple
states?
Register in your home state and foreign‑qualify in each additional state where you do business. - Where should I start?
Use the SBA “Launch your business” and “Register your business” guides to follow state and federal steps in order and find state portals.
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