The exact steps vary by state, but here’s the general process:

Step 1. Choose your business structure

  • Decide if you’ll operate as a sole proprietorship, partnership, LLC, or corporation.

  • This affects taxes, liability, and paperwork.

Step 2. Pick a business name

  • Make sure the name is unique in your state’s business registry.

  • Optional: register a “Doing Business As” (DBA) if your operating name differs from your legal name.

Step 3. Register with your state

  • For LLCs or corporations, file Articles of Organization (LLC) or Articles of Incorporation (corporation) with your state’s Secretary of State office.

  • Pay the state filing fee (ranges from ~$50 to ~$500).

Step 4. Get an EIN (Employer Identification Number)

  • Apply online for free at the IRS website.

  • Needed for taxes, employees, and business bank accounts.

Step 5. Apply for licenses and permits

  • This depends on your business type (e.g., food service needs health permits, contractors need trade licenses).

  • Check local city and county requirements too.

Step 6. Open a business bank account

  • Keep business and personal finances separate for taxes and liability protection.

2. Best States to Register a Business

You can register in any state, but “best” depends on where you’ll actually do business.

If you only do business in your home state...

  • It’s usually best to register in your home state.

  • Otherwise, you’ll have to file as a “foreign entity” in your home state too, which means paying two sets of fees and taxes.

If you’re running an online, nationwide, or global business...

Some states are especially popular:

Delaware

  • Known for being business-friendly and having specialized courts for business disputes.

  • Low filing fees, but franchise tax can add up for larger companies.

  • Big corporations often choose Delaware.

Wyoming

  • No state corporate income tax and low fees.

  • Strong privacy: owners don’t have to be listed publicly.

  • Very popular for small LLCs.

Nevada

  • No state income tax and strong privacy laws.

  • Slightly higher annual fees than Wyoming, but still attractive.

Florida & Texas

  • No personal state income tax.

  • Good if you plan to live and run your business there.

  • Registration process is straightforward, with moderate fees.

Quick Recommendations

  • For a local brick-and-mortar business: Register in your home state.

  • For an online/remote LLC: Wyoming (lowest cost, strong privacy) or Delaware (investor-friendly, standard choice for startups).

  • For corporations planning to raise venture capital: Delaware is usually the best.