Starting a business takes strategic planning, preparation, and hard work. Registering your business is an important step in the process. The US contains 36.2 million small businesses as of 2025, which account for almost 46% of private sector employment. From March 2023 to March 2024, US small businesses created approximately 9 out of 10 net new jobs.

Registration requirements exist at the federal, state, and local level. Because of these different requirements, “registering a business” isn’t a single item on the to-do list when starting a new company. It could mean getting a federal tax number, forming an LLC or corporation in your state, or applying for a business license with local authorities.

Registering your business can seem overwhelming, but the entire process typically only takes a few weeks. Below is a step-by-step guide outlining the steps, requirements, and considerations of registering a business in the US.

What’s in this article?

• Choose the right structure for your business
  
• Pick a name for your business
  
• Apply for an EIN
  
• Apply for business licenses
  
• Register with state agencies
  
• Open a business bank account
  
• Understand your tax obligations
  
• What to do after registering your business
  
• Can non-US residents register a company in the US?
  
• How Stripe Atlas can help
  

1. Choose a business structure

Choosing the right business structure is the first step in registering a business in the US. The structure you choose will impact your business’s legal liability, tax obligations, and management structure. There are several types of business structures to choose from, each with its own advantages and disadvantages. Here are the most common business structures to consider:

• Sole proprietorship
  A sole proprietorship is the simplest business structure, since it is owned and managed by a single person. The owner is personally responsible for all business debts and liabilities, and the owner reports business profits on their personal income tax return.

• Partnership
  A partnership is owned by two or more people who share profits and losses. Each partner is personally responsible for the partnership’s debts and liabilities, and each partner reports profits and losses on their personal tax return.

• Corporation
  A corporation—such as an S corp or a C corp—is a standalone legal entity that’s owned by its shareholders. It’s responsible for its own debts and liabilities, and profits are taxed separately from the owners’ personal income. Corporations also offer limited liability protection to their owners.

• Limited Liability Company (LLC)
  An LLC is a hybrid of a corporation and a partnership. It offers the same limited liability protection as a corporation, but with more flexibility in management and tax structure. Owners report profits and losses on their personal tax returns.

For some businesses, the best type of structure will be obvious, but for others, the decision is less clear. If you have trusted advisors, cofounders, or hired counsel, seek out their input. Once you have chosen your business structure, you can move on to the next step: choosing a name for your business.

2. Pick a name for your business

The business name you choose will impact your brand identity and create the first impression with customers and competitors. Pick a name that accurately reflects your business and is easy to remember. Sole proprietors or LLCs doing business under a name different from their legal name often need to file a “doing business as” (DBA) name.

Here are some practical tips to help you get started:

• Brainstorm a list of potential names that align with your business’s values and mission. Consider using words that evoke positive feelings or that are relevant to your industry.

• Verify that the chosen business names are available and do not conflict with existing trademarks. You can use the US Patent and Trademark Office’s (USPTO) search tool to check for existing trademarks that might conflict with your name. This is also a good time to check whether the relevant website domain names and social media handles associated with your desired business name are available.

Don’t underestimate the importance of claiming the right digital footprint for your business. This can be the deciding factor between two otherwise strong name options.

You might choose to protect your business name by trademarking it. Trademarking your business name can give you exclusive rights to use it and prevent others from using a similar name. It can also protect your brand identity and help you stand out in a competitive market.

3. Apply for an EIN

After choosing a business structure and name, the next step to register your business in the US is to apply for an Employer Identification Number (EIN). An EIN is a unique nine-digit number assigned by the IRS that a business will need to open a bank account, run payroll, and file US taxes. An EIN is like a social security number for your business.
If you have a US Social Security Number (SSN), a US address, and a US phone number, you can apply for an EIN through the IRS website for free. If you don’t have an SSN, you’ll need to apply for your EIN via fax or mail. To apply, you will need to provide some basic information about your business, such as its legal name, address, and business structure. You will also need to provide information about the person who will be responsible for the business’s tax matters.

If you applied online, you will receive your EIN immediately. If you applied via fax or mail, it could take up to 4 weeks for you to receive your EIN. Keep your EIN safe and use it whenever you need to identify your business, such as when opening a bank account or filing tax returns.

4. Apply for business licenses

Depending on your industry and location, you may need to obtain various permits and licenses in order to legally operate your business. The process of identifying and applying for business licenses might look slightly different depending on your location, but generally it’s similar throughout the US:

• Identify the necessary licenses
  Before applying for licenses, research and identify which ones are required for your business, based on your industry and location. Common examples include professional licenses, industry-specific licenses, and business activity permits.

• Check the issuing agency
  After identifying the required licenses, check with the issuing agency to confirm the specific requirements and process for applying. This may vary by state or even by county or city.

• Gather the necessary documentation
  Depending on the license, you may need to provide documentation, such as proof of insurance, zoning approval, or educational credentials.

• Complete the application
  Once you have gathered all the necessary documentation, you can complete the license application. This can often be done online or by mail, depending on the issuing agency.

• Pay the application fee
  Most licenses require a fee. The amount may vary depending on the type of license and issuing agency.

• Wait for approval
  After submitting your application and fee, you will need to wait for the license to be approved. This may take several weeks.

• Display your license
  Once you have received your license, you may need to display it prominently at your business location if doing so is required by law.

There are many resources available to help you identify the necessary licenses for your business. A good place to start is your state’s Secretary of State office or Department of Revenue. You can also use online resources such as the SBA’s permit and license guide, which allows you to search for necessary licenses by state and industry.

5. Register with state agencies

After choosing a business structure, naming your business, and obtaining an EIN, the next step is to register with state agencies. The requirements may vary, depending on your state and the type of business you operate. However, at minimum you will likely need to file paperwork with the state government and pay any necessary fees.

Here’s what registering your business with state agencies typically entails:

• Register your business entity
  Register your business entity with your state. This involves filing paperwork such as Articles of Incorporation, Articles of Organization, or Partnership Agreements, depending on your business structure. Most states require corporations and LLCs to designate a registered agent as a local point of contact.

• Obtain any necessary insurance
  Depending on your industry and location, you may need to obtain certain types of insurance, such as liability insurance or workers’ compensation insurance.

• Comply with any other state requirements
  Depending on your business type and location, there may be additional state requirements you need to comply with, such as registering for unemployment insurance, obtaining state specific sales tax permits, or complying with environmental regulations.

6. Open a business bank account

A business bank account is a separate account that is used exclusively for business transactions. Here is why opening a business bank account is important:

• It separates personal and business finances
  By opening a business bank account, you can keep your personal and business finances separate. This will help you track your business’s income and expenses more accurately and simplify tax reporting.

• It provides legal protection
  Having a separate business bank account can help protect your personal assets in case of legal issues or bankruptcy. It shows that your business is a separate legal entity from yourself and can help shield your personal finances from business liabilities.

• It makes it easier to accept payments
  Even though you might accept customer payments with a merchant account, you’ll still need to transfer those funds into a regular business bank account. Businesses that use Stripe to accept and process customer payments are required to have a business bank account to get paid.

Shop around and compare fees and services at different banks. Look for a bank that offers the features you need, such as online banking, mobile banking, or overdraft protection. You may also want to consider working with a bank that specializes in small business banking.

7. Understand your tax obligations

Tax obligations are the monetary dues that businesses must pay to the government, including income tax, payroll tax, sales tax, and excise tax. Such obligations have a significant impact on a business’s financial stability and future success.

Why tax compliance matters

Failure to pay taxes, or filing taxes inaccurately, can lead to penalties, interest, or legal action. Understanding your tax obligations can ensure that your business remains compliant with tax laws and regulations, preventing any fines or legal consequences.

The importance of planning ahead

Businesses must also plan and prepare for their tax obligations, as taxes can impact cash flow and financial stability. Accounting for tax obligations in your financial planning is important to ensure that your financial projections are sound and that you have the necessary funds to meet your tax obligations and remain financially stable.

How tax compliance builds trust with partners

Meeting your tax obligations can establish a reputation for financial responsibility and provide access to funding and partnership opportunities. Lenders, investors, and business partners often look for businesses with a strong tax history and compliance record.

The importance of professional support

To understand your specific tax requirements, conduct comprehensive research on the specific tax laws and regulations that apply to your business. Take care to factor in variations based on every state where you have tax obligations. It’s a good idea to consult with a tax professional or an accountant (or to hire these roles in-house) to make sure you don’t miss anything.

What to do after registering your business

Once you’ve officially registered your business, there’s still work to do. The exact tasks will depend on your business type, but they generally include:

• Drafting operating agreements

• Setting up bookkeeping or accounting software

• Getting business insurance

• Choosing a payments provider

• Building a website

• Obtaining project management tools, such as a customer relationship management (CRM) system

• Developing a company logo and branding

Can non-US residents register a company in the US?

Yes, non-US residents can register a company in the US. While you don’t need to be a US citizen or have a visa to form a US company, you can’t legally work in the US without a visa, so this setup only works for remote business owners.

Here are a few important factors to consider when registering a US business from abroad.

You can apply for an EIN

Non-residents can obtain an EIN from abroad by indicating their entity’s foreign status and following the instructions for foreign entities. International applicants can’t apply for an EIN online, so you must apply via phone, fax, or mail.

You’ll need a registered agent

Registered agent requirements also apply to LLCs and corporations owned by non-residents. You’ll need to appoint a registered agent with a local address to receive legal and government documents on your behalf.

You can manage payments remotely

You can run the business from abroad, which includes managing payments. By working with a global payments provider such as Stripe, you can accept payments in US dollars and receive detailed tax reports to simplify tax time.

How Stripe Atlas can help

Stripe Atlas sets up your company’s legal foundations so you can fundraise, open a bank account, and accept payments within two business days from anywhere in the world.

Join 80K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You’ll choose your company structure, instantly confirm whether your company name is available, and add up to four cofounders. You’ll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers, and then e-sign all your documents. Any cofounders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your EIN. Founders with a US Social Security number, address, and cell phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g., copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you—whether you are a US or non-US founder—with USPS Certified Mail and tracking. You’ll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world’s leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

A free year of Stripe Payments, plus $50K in partner perks and $2,500 in Stripe credits

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance, and operations from industry leaders like AWS, Carta, and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you’ll get $2,500 in Stripe product credits for use in their first year after incorporation.

Learn more about how Atlas can help you set up your new business quickly and easily, and get started today.