How to register your business: A beginner’s guide

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<span class="c-navigation-mega-menu__link-text"> For small businesses </span> <svg class="c-navigation-mega-menu__link-caret o-icon" width="36" height="66" viewBox="0 0 36 66" fill="none" xmlns="http://www.w3.org/2000/svg"> <path fill-rule="evenodd" clip-rule="evenodd" d="M35.0033 30.7596C36.1749 31.9312 36.1749 33.8307 35.0033 35.0023L6.36428 63.6413C5.19271 64.8128 3.29321 64.8128 2.12164 63.6413C0.950068 62.4697 0.950068 60.5702 2.12164 59.3986L28.6393 32.8809L2.12164 6.36326C0.950068 5.19169 0.950068 3.2922 2.12164 2.12062C3.29321 0.94905 5.19271 0.94905 6.36428 2.12062L35.0033 30.7596Z" fill="#000"/> </svg> </div> </a> </div> <div class="c-navigation-mega-menu__row c-navigation-mega-menu__row--int-link"> <a class="c-navigation-mega-menu__link" href="https://business.yelp.com/products/business-page/"> <div class="c-navigation-mega-menu__link-header"> <span class="c-navigation-mega-menu__link-text"> Yelp Business Page </span> </div> </a> </div> <div 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<a class="c-site-header__mobile-nav-toggle js-mobile-nav-toggle" href="#"> <span></span> <span></span> <span></span> </a> </div> </div> </header> <main class="o-main js-main"> <div class="s-single-post"> <section class="o-section s-single-post__breadcrumbs"> <div class="o-wrapper o-wrapper--narrow"> <nav class="c-breadcrumbs"> <div class="c-breadcrumbs__item"> <a class="c-breadcrumbs__link" href="https://business.yelp.com"> Home </a> <span class="c-breadcrumbs__sep">/</span> </div> <div class="c-breadcrumbs__item"> <a class="c-breadcrumbs__link" href="/resources"> Resources </a> <span class="c-breadcrumbs__sep">/</span> </div> <div class="c-breadcrumbs__item"> <a class="c-breadcrumbs__link" href="https://business.yelp.com/resources/articles/"> Articles </a> </div> </nav> </div> </section> <article class="o-section s-single-post__article"> <div class="o-wrapper o-wrapper--narrow"> <h1 class="h2 s-single-post__title"> How to register your business: a beginner’s guide </h1> </div> <div class="o-wrapper o-wrapper--narrow"> <aside class="c-post-meta "> <div class="c-post-meta__author-avatar c-post-meta__author-avatar--user"> <img src="https://business.yelp.com/wp-content/uploads/2024/08/cropped-yelp-author-icon-96x96.gif" alt="Yelp Inc." class="c-post-meta__author-avatar-image c-post-meta__author-avatar-image--user"> </div> <div class="c-post-meta__author"> <div class="c-post-meta__author-name"> <a href="https://business.yelp.com/author/yelp-inc/" class="c-post-meta__author-link"> Yelp Inc. </a> </div> </div> <div class="c-post-meta__post-date"> November 23, 2020 </div> </aside> </div> <div class="o-wrapper o-wrapper--narrow"> <div class="s-single-post__content s-standard-content s-wp-content"> <aside class="c-key-takeaways"> <h2 class="h4 c-key-takeaways__title">Key takeaways</h2> <div class="c-key-takeaways__content"> </p> <ul> <li>Before you can register your business, you must identify your business structure, select your location, and pick your business name</li> <li>You must register your business name, register with the IRS and relevant government agencies, and obtain necessary business licenses and permits</li> <li>Once you register your business, you can focus on reaching new customers</li> </ul> <p> </div> </aside> <p><a href="https://business.yelp.com/resources/articles/ultimate-guide-to-starting-a-small-business/">Starting a business</a> is an exciting, life-changing endeavor filled with opportunities and responsibilities. As a business owner, you make decisions every day, and you also ask questions.</p> <p>When starting a new business, a key question is how to register your business. With this guide, you’ll learn about the steps to take before registering plus the actual registration process.</p> <h2><img fetchpriority="high" decoding="async" class="alignnone wp-image-2036 size-large" src="https://business.yelp.com/wp-content/uploads/2021/11/How-to-register-your-business-1024x576.jpeg" alt="" width="1024" height="576" srcset="https://business.yelp.com/wp-content/uploads/2021/11/How-to-register-your-business-1024x576.jpeg 1024w, https://business.yelp.com/wp-content/uploads/2021/11/How-to-register-your-business-300x169.jpeg 300w, https://business.yelp.com/wp-content/uploads/2021/11/How-to-register-your-business-768x432.jpeg 768w, https://business.yelp.com/wp-content/uploads/2021/11/How-to-register-your-business-1200x675.jpeg 1200w, https://business.yelp.com/wp-content/uploads/2021/11/How-to-register-your-business-752x423.jpeg 752w, https://business.yelp.com/wp-content/uploads/2021/11/How-to-register-your-business-600x338.jpeg 600w, https://business.yelp.com/wp-content/uploads/2021/11/How-to-register-your-business.jpeg 1296w" sizes="(max-width: 1024px) 100vw, 1024px" /></h2> <h2>3 requirements before you register your business</h2> <p><span style="font-weight: 400;">Business registration</span><span style="font-weight: 400;"> is a step-by-step process that requires you to determine three essential bits of information about your business. Here’s how to start:</span></p> <h3>1. Identify your business structure</h3> <p><span style="font-weight: 400;">Your </span><span style="font-weight: 400;">business structure</span><span style="font-weight: 400;"> is the type of </span><span style="font-weight: 400;">legal entity</span><span style="font-weight: 400;"> you want your business to be. There are several types of </span><span style="font-weight: 400;">business structures</span><span style="font-weight: 400;">, each with their own </span><span style="font-weight: 400;">costs</span><span style="font-weight: 400;">, risks, and tax implications. The </span><span style="font-weight: 400;">business structure</span><span style="font-weight: 400;"> you choose depends on your priorities as a </span><span style="font-weight: 400;">business owner</span><span style="font-weight: 400;">. </span></p> <p><span style="font-weight: 400;">The types of </span><span style="font-weight: 400;">business structures</span><span style="font-weight: 400;"> include:</span></p> <ul> <li style="font-weight: 400;"><b>Sole Proprietorship</b><b>:</b><span style="font-weight: 400;"> This option designates one person as the owner. This structure is easy to set up, but the owner’s personal assets are at risk.</span></li> <li style="font-weight: 400;"><b>Partnership (General or Limited):</b><span style="font-weight: 400;"> A partnership means the business is owned by more than one person. All parties share the risks and profits.</span></li> <li style="font-weight: 400;"><b>Corporation </b><b>(or C-Corporation):</b><span style="font-weight: 400;"> This structure separates the owner from the </span><span style="font-weight: 400;">business entity</span><span style="font-weight: 400;">. Owners are not personally at risk. However, this is more complicated to set up.</span></li> <li style="font-weight: 400;"><b>Limited Liability Company</b><b> (LLC): </b><span style="font-weight: 400;">As the name suggests, an LLC limits the liability for a company and protects your personal assets.</span></li> <li style="font-weight: 400;"><b>Limited Liability</b><b> Partnership (LLP):</b><span style="font-weight: 400;"> Similar to an LLC, an LLP reduces the liability of multiple owners.</span></li> </ul> <p><span style="font-weight: 400;">Keep in mind that your choice of </span><span style="font-weight: 400;">business structure</span><span style="font-weight: 400;"> will determine:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The steps you go through during your </span><span style="font-weight: 400;">business registration</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">The taxes you pay</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Your financial responsibility as the </span><span style="font-weight: 400;">business owner</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Your ability to get loans and funding from banks and other parties</span></li> </ul> <p><span style="font-weight: 400;">To make the right choice, research the different types of </span><span style="font-weight: 400;">business structures</span><span style="font-weight: 400;">, take note of their pros and cons, and identify the most suitable one for your business.</span></p> <h3>2. Select your business location</h3> <p><span style="font-weight: 400;">Location, location, location. You’ve heard this mantra when it comes to choosing a home, and it’s the same when selecting your business site. The </span><span style="font-weight: 400;">registration process</span><span style="font-weight: 400;"> for businesses varies from state to state, and so do the </span><span style="font-weight: 400;">business taxes</span><span style="font-weight: 400;"> you must pay. As such, </span><a href="https://www.entrepreneur.com/slideshow/299849" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;">selecting your business location</span></a><span style="font-weight: 400;"> is a significant decision</span> <span style="font-weight: 400;">to make.</span></p> <p><span style="font-weight: 400;"> Here are several questions you’ll want to ask yourself:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Can you work from home or does the nature of your business require a location separate from your house?</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Will your business provide a service, sell products, or manufacture and sell products?</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Do you want to set up your business in the same locality or state where you reside or are you looking at a different state?</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Who is your target audience?</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Do you need a location in an area with a large population of your target audience?</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Can employees, suppliers, and customers easily get to your location? </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Can you afford the cost of doing business in this location, including rent, utilities, etc.? </span></li> </ul> <h3>3. Pick your business name</h3> <p><span style="font-weight: 400;">When coming up with a </span><a href="https://blog.hubspot.com/sales/business-name-ideas" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;">business name</span></a><span style="font-weight: 400;">, you want to stand out from the crowd. A creative, descriptive, or fun </span><span style="font-weight: 400;">business name</span><span style="font-weight: 400;"> can make a lasting impression on potential customers. It’s also a necessary part of registering your business. </span></p> <p><span style="font-weight: 400;">Based on your </span><span style="font-weight: 400;">business structure</span><span style="font-weight: 400;"> and your location in the </span><span style="font-weight: 400;">United States</span><span style="font-weight: 400;">, your business may have two </span><span style="font-weight: 400;">different names</span><span style="font-weight: 400;">:</span></p> <ul> <li style="font-weight: 400;"><b>A </b><b>legal name</b><b>: </b><span style="font-weight: 400;">This is the name your business is legally required to have based on your </span><span style="font-weight: 400;">business structure</span><span style="font-weight: 400;">. There are </span><span style="font-weight: 400;">legal name</span><span style="font-weight: 400;"> requirements for each </span><span style="font-weight: 400;">type of business structure</span><span style="font-weight: 400;">. For example, </span><span style="font-weight: 400;">sole proprietors</span><span style="font-weight: 400;"> must have their surname in their </span><span style="font-weight: 400;">business name</span><span style="font-weight: 400;">.</span></li> <li style="font-weight: 400;"><b>A brand name:</b><span style="font-weight: 400;"> There are instances where a </span><span style="font-weight: 400;">business owner</span><span style="font-weight: 400;"> may want their </span><span style="font-weight: 400;">business name</span><span style="font-weight: 400;"> to be different from the </span><span style="font-weight: 400;">legal name</span><span style="font-weight: 400;">—</span><span style="font-weight: 400;">this is where a </span><a href="https://business.yelp.com/resources/articles/branding-ideas-small-business/"><span style="font-weight: 400;">brand name</span></a><span style="font-weight: 400;"> comes in. Brand names are used for public promotion while </span><span style="font-weight: 400;">legal names</span><span style="font-weight: 400;"> are reserved for legal documents and records.</span></li> </ul> <p><span style="font-weight: 400;">To pick the right </span><span style="font-weight: 400;">business name</span><span style="font-weight: 400;">, consider your answers to the following questions:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Does the name fit with your </span><span style="font-weight: 400;">type of business</span><span style="font-weight: 400;"> and brand?</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Is the name simple and unique?</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Is the name being used by another business?</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Have you confirmed that the name is not already trademarked?</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Is the </span><a href="https://www.website.com/beginnerguide/domainnames/8/1/What-is-a-domain-name?.ws" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;">domain name</span></a><span style="font-weight: 400;"> (website name) still available?</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Is the name still available on social media?</span><span style="font-weight: 400;"> </span></li> </ul> <h2>How to register your business in 4 steps</h2> <p><span style="font-weight: 400;">When you have your </span><span style="font-weight: 400;">business structure</span><span style="font-weight: 400;">, location, and name selected, you can begin the </span><span style="font-weight: 400;">registration process</span><span style="font-weight: 400;">. Here’s how to register your business in four easy steps:</span></p> <h3>1. Register your business name</h3> <p><span style="font-weight: 400;">You can register your </span><span style="font-weight: 400;">legal name</span><span style="font-weight: 400;"> as your </span><span style="font-weight: 400;">business name</span><span style="font-weight: 400;"> by filing documents such as </span><span style="font-weight: 400;">articles of incorporation</span><span style="font-weight: 400;"> or </span><span style="font-weight: 400;">articles of organization</span><span style="font-weight: 400;"> at the </span><span style="font-weight: 400;">state level</span><span style="font-weight: 400;">. The necessary documentation will depend on your </span><span style="font-weight: 400;">business structure</span><span style="font-weight: 400;"> and location.</span></p> <p><span style="font-weight: 400;">If you’re using a brand name that’s separate from your </span><span style="font-weight: 400;">legal name</span><span style="font-weight: 400;">, some states may require that you register a</span><a href="https://www.businessnewsdaily.com/48-doing-business-as-how-to-register-a-dba-name.html" target="_blank" rel="noopener noreferrer"> <span style="font-weight: 400;">“</span><span style="font-weight: 400;">doing business as</span><span style="font-weight: 400;">”</span></a><span style="font-weight: 400;"> name</span><span style="font-weight: 400;">—</span><span style="font-weight: 400;">also known as a </span><span style="font-weight: 400;">DBA</span><span style="font-weight: 400;">, </span><span style="font-weight: 400;">assumed name</span><span style="font-weight: 400;">, </span><span style="font-weight: 400;">trade name</span><span style="font-weight: 400;">, or </span><span style="font-weight: 400;">fictitious name</span><span style="font-weight: 400;">.</span></p> <p><span style="font-weight: 400;">In some states, a </span><span style="font-weight: 400;">DBA</span><span style="font-weight: 400;"> registration can be done with the local </span><span style="font-weight: 400;">county clerk</span><span style="font-weight: 400;"> instead of a state agency. Either way, be prepared to pay a </span><span style="font-weight: 400;">filing fee</span><span style="font-weight: 400;">. You might also have to publish your </span><span style="font-weight: 400;">DBA</span><span style="font-weight: 400;"> in your local newspaper as a notice to the general public.</span></p> <p><span style="font-weight: 400;">Once your </span><span style="font-weight: 400;">DBA</span><span style="font-weight: 400;"> is registered with your state or </span><span style="font-weight: 400;">county clerk</span><span style="font-weight: 400;">, the name will no longer be available for anyone else to use. You can confidently use it to sign contracts and open a business </span><span style="font-weight: 400;">bank account</span><span style="font-weight: 400;">.</span></p> <p><span style="font-weight: 400;">You can also register your </span><span style="font-weight: 400;">business name</span><span style="font-weight: 400;"> as a trademark in your state and at the federal level when you want to do business across many states or internationally. </span></p> <h3>2. Register with the IRS</h3> <p><span style="font-weight: 400;">You must register with the Internal Revenue Service (</span><span style="font-weight: 400;">IRS</span><span style="font-weight: 400;">) to obtain your </span><a href="https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers" target="_blank" rel="noopener noreferrer"><span style="font-weight: 400;">federal employer identification number</span></a><span style="font-weight: 400;"> (EIN). This number identifies businesses for tax purposes just like a </span><span style="font-weight: 400;">Social Security</span><span style="font-weight: 400;"> number identifies individuals.</span></p> <p><span style="font-weight: 400;">Even though it’s not compulsory for some types of </span><span style="font-weight: 400;">business structures</span><span style="font-weight: 400;"> to register with the </span><span style="font-weight: 400;">IRS</span><span style="font-weight: 400;"> (e.g., some </span><span style="font-weight: 400;">sole proprietors</span><span style="font-weight: 400;">), many still do because of the benefits it provides, such as:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">The option to apply for a business checking account</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Better business credibility that can attract vendors, suppliers, and creditors</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Ability to apply for government contracts</span></li> </ul> <h3>3. Register with relevant government agencies</h3> <p><span style="font-weight: 400;">You must register with the state where your business is located. You may also need to get a </span><span style="font-weight: 400;">state tax</span><span style="font-weight: 400;"> ID number.</span></p> <p><span style="font-weight: 400;">Most </span><span style="font-weight: 400;">local government agencies</span><span style="font-weight: 400;"> are responsible for providing permits and licenses, which you may need based on the nature of your business (read more about these in the next section). You may also be required to register your </span><span style="font-weight: 400;">DBA</span><span style="font-weight: 400;"> or </span><span style="font-weight: 400;">trade name</span><span style="font-weight: 400;"> in your local city or county, if you’re interested in using one.</span></p> <p><span style="font-weight: 400;">In most cases, it’s not mandatory to</span> <span style="font-weight: 400;">register with the federal government except when:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">You’re interested in </span><span style="font-weight: 400;">federal trademark</span><span style="font-weight: 400;"> protection</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">You need a </span><span style="font-weight: 400;">federal employer identification number</span><span style="font-weight: 400;"> </span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">You want to enjoy tax exemption because your business is a charity or nonprofit</span></li> </ul> <h3>4. Obtain necessary business licenses and permits</h3> <p><span style="font-weight: 400;">Again, depending on the nature of your business and </span><span style="font-weight: 400;">business structure</span><span style="font-weight: 400;">, you may need to get specific permits and licenses at the federal, state, or local level.</span></p> <p><span style="font-weight: 400;">Simply put, a </span><a href="https://business.yelp.com/resources/articles/types-of-business-licenses/"><span style="font-weight: 400;">business license</span></a><span style="font-weight: 400;"> is a document that allows you to operate your business. Some licenses may require you to take an exam—such as those for professions in law, accounting, and medicine—while others may only need you to register for a permit or license.</span></p> <p><span style="font-weight: 400;">A permit is a government-issued type of license that regulates public safety. It’s usually granted after an inspection. For instance, a restaurant or any business involved in the preparation of food will likely require a health permit while a home-based business will need a home occupation permit.</span></p> <div class="c-inline-cta"> <div class="c-inline-cta__content-container"> <h2 class="h3 c-inline-cta__title">Get found for free</h2> <div class="c-inline-cta__content s-standard-content"> <p>Show up for any of the millions of customers on Yelp searching for a business like yours.</p> </div> <a class="c-button c-button--primary js-cta-button" href="https://biz.yelp.com/claim?utm_medium=y4bweb&utm_source=seo-local-business-article&utm_content=verify-free-listing-promo-cta&utm_campaign=claim-flow-y4bweb" target="_blank" > Verify my free listing</a> </div> <div class="c-inline-cta__image-container"> <div class="c-inline-cta__image-wrapper"> <img decoding="async" class="o-image c-inline-cta__image" src="https://business.yelp.com/wp-content/uploads/2024/03/inline-cta-image-01.png" srcset="https://business.yelp.com/wp-content/uploads/2024/03/inline-cta-image-01-240x160.png 240w, https://business.yelp.com/wp-content/uploads/2024/03/inline-cta-image-01-378x378.png 567w, https://business.yelp.com/wp-content/uploads/2024/03/inline-cta-image-01.png 656w, https://business.yelp.com/wp-content/uploads/2024/03/inline-cta-image-01-300x358.png 300w, https://business.yelp.com/wp-content/uploads/2024/03/inline-cta-image-01.png 600w, https://business.yelp.com/wp-content/uploads/2024/03/inline-cta-image-01.png 752w" sizes="(max-width: 382.978723404px) 240px, (max-width: 904.787234043px) 567px, (max-width: 1046.80851064px) 656px, (max-width: 478.723404255px) 300px, (max-width: 957.446808511px) 600px, 752px" alt="" > <img decoding="async" src="https://business.yelp.com/wp-content/uploads/2024/02/yelp-splash-red.svg" alt="" class="o-image c-inline-cta__icon" aria-hidden="true" style="top: 45%; left: 1%; height: 25%;"> </div> </div> </div> <h2>Register your business like a pro</h2> <p><span style="font-weight: 400;">Before you can register your business, you need to identify your </span><span style="font-weight: 400;">business structure</span><span style="font-weight: 400;">, select a business location, and pick a </span><span style="font-weight: 400;">business name</span><span style="font-weight: 400;">.</span></p> <p><span style="font-weight: 400;">Depending on your </span><span style="font-weight: 400;">business structure</span><span style="font-weight: 400;"> and location, you may need to register your business using the following steps:</span></p> <ul> <li style="font-weight: 400;"><span style="font-weight: 400;">Register your </span><span style="font-weight: 400;">business name</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Register with the </span><span style="font-weight: 400;">IRS</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Register with relevant </span><span style="font-weight: 400;">government agencies</span></li> <li style="font-weight: 400;"><span style="font-weight: 400;">Get required </span><span style="font-weight: 400;">business licenses</span><span style="font-weight: 400;"> and permits</span></li> </ul> <p>Once you register your business, it’s time to let people know. One of the easiest ways to do this is by <a href="https://business.yelp.com/products/business-page/"><span style="font-weight: 400;">creating a business page on review sites like Yelp</span></a>. It’s free and can instantly connect your business to potential customers.</p> </div> </div> </article> <section class="o-section s-single-post__tags"> <div class="o-wrapper o-wrapper--narrow"> <nav class="c-post-tags-wrapper"> <a href="https://business.yelp.com/topic/successful-startups/" class="c-post-tag"> Starting your business </a> </nav> </div> </section> <aside class="o-section s-single-post__boilerplate"> <div class="o-wrapper o-wrapper--narrow"> <div class="s-single-post__boilerplate-content"> The information above is provided for educational and informational purposes only. It is not intended to be a substitute for professional advice and may not be suitable for your circumstances. 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