A Practical Checklist for Registering a New Business

1. Clarify the business fundamentals

• What the business will sell and how it will earn revenue
• Who will own it
• Where it will operate
• Whether it will have employees
• Whether it will operate in more than one state
• Whether its activities require professional or industry licensing

2. Select an appropriate business structure

Common choices include a sole proprietorship, partnership, limited liability company, and corporation. Structure can affect liability, taxation, administration, ownership changes, and financing. An LLC is generally a state-law entity, while an S corporation is a federal tax election.

3. Check and protect the business name

• Search the state’s business-name database
• Consider federal trademark conflicts
• Check relevant domain names
• Determine whether a DBA filing is needed
• Confirm the name satisfies entity-type rules

4. Register with the appropriate state

LLCs, corporations, and certain partnerships generally register with a Secretary of State or similar agency. Prepare the legal name, address, registered-agent information, ownership or management details, purpose, and filing fee.

5. Prepare internal governing documents

Depending on the structure, consider an operating agreement, partnership agreement, bylaws, initial resolutions, or a buy-sell agreement. An attorney should prepare or review agreements involving multiple owners.

6. Obtain tax identification numbers

After the appropriate state formation, determine whether the business needs an EIN. Apply only through the official IRS website; the IRS does not charge a fee to issue an EIN. State or local tax accounts may also be required.

7. Review licenses, permits, and local requirements

Formation does not automatically authorize every business activity. Requirements can depend on industry, services, location, zoning, employees, and federal, state, county, or municipal rules.

8. Separate finances and establish routines

Open a business bank account, keep business and personal activity separate, decide who will maintain the books, and create a calendar for tax filings, annual reports, and license renewals.

9. Revisit multi-state activity

A business formed in one state may need to register or file in another when it has employees, property, offices, frequent in-person activity, or substantial business there.