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Register a Business: LLC, Sole Proprietor, Corp, DBA

Last updated September 27, 2026

For first-time founders, compare sole proprietor, DBA, LLC, and corporation paths, then follow filing, EIN, tax, license, and bank steps.

If you want to register a business, the right path depends on how you operate, what name you use, and how much legal separation you want. If you sell under your own legal name, you may be a sole proprietor without forming anything with the state. If you use a brand name, you may need a DBA. If you want liability separation, choose an LLC. If you plan to issue stock or raise venture capital, consider a corporation.

This tutorial walks you through the decision and the filings in the order you should handle them.

What “register a business” actually means

“Registering a business” is not one single filing. It can mean several different things:

  1. Forming a legal entity with your state, such as an LLC or corporation.
  2. Registering a business name, often called a DBA, fictitious name, assumed name, or trade name.
  3. Getting an EIN from the IRS.
  4. Applying for local licenses, sales tax permits, or professional permits.
  5. Registering to do business in another state if you operate there.

You may need one of these. You may need several. The mistake first-time founders make is filing everything before they know what actually applies.

Use this order: choose your structure, confirm your name, file the required registration, then handle tax and license setup.

What you need before you start

Before you file anything, gather:

  • Your legal name and address.
  • Your business name idea.
  • A short description of what you sell.
  • Your business address or registered agent address.
  • The state where you are starting.
  • The owners’ names and ownership percentages, if there is more than one owner.
  • A payment method for state or local filing fees.

You do not need a logo, website, trademark, or full business plan to register. Those can come later.

Here is what the process typically looks like:

PathBest forTypical filing costTypical timing
Sole proprietor using your legal nameSimple solo service or freelance work$0 for formationImmediate
DBASelling under a name that is not your legal nameTypically around $10–$100+ depending on locationSame day to a few weeks
LLCLiability separation and a simple small business structureTypically around $50–$500+ depending on stateSame day to a few weeks
CorporationStock, investors, or a more formal ownership structureTypically around $50–$500+ depending on stateSame day to a few weeks
EINHiring, banking, taxes, multi-owner entitiesFree through the IRSUsually immediate online

Fees and timing vary by state, county, city, and filing method.

Step 1: Choose your registration path

Start by matching your situation to the simplest correct option.

Choose sole proprietor if:

  • You are the only owner.
  • You are testing a simple business.
  • You are using your own legal name, such as “Maria Lopez.”
  • You are comfortable with no legal separation between you and the business.

A sole proprietorship is the default for one person doing business without forming an LLC or corporation. You usually do not file formation paperwork with the state just to become a sole proprietor.

Choose a DBA if:

  • You are operating under a name different from your legal name.
  • Your LLC or corporation wants to use another brand name.
  • Your bank, city, county, or state requires proof that you can use the name.

A DBA does not create liability protection. It is a name registration. For example, if Jordan Smith sells as “Oak Street Web Design,” Jordan may need a DBA.

Choose an LLC if:

  • You want separation between your personal assets and business obligations.
  • You want a flexible structure for a small business.
  • You have partners.
  • You sell products, provide services with risk, sign contracts, or want a more formal setup.

An LLC is common for first-time founders because it is usually simpler than a corporation while still creating a separate legal entity.

Choose a corporation if:

  • You plan to issue stock.
  • You are building for outside investors.
  • You may raise venture capital.
  • You need a board, shares, and formal corporate governance.

A corporation can be powerful, but it is more formal. For many small local businesses, solo consultants, and online service businesses, an LLC is often easier to manage.

How you know this step worked: you can say, in one sentence, “I am registering as a ___ because ___.” If you cannot, pause before filing.

Step 2: Check and choose your business name

Once you know your path, check whether your name is available.

Do these checks:

  1. Search your state business entity database if you are forming an LLC or corporation.
  2. Search your county or state DBA database if you are filing a DBA.
  3. Search online for businesses using the same or very similar name.
  4. Check whether the matching domain and social handles are available, if those matter to you.
  5. Consider a basic trademark search if the name will become a major brand.

Name rules vary. LLCs usually need “LLC,” “L.L.C.,” or similar wording. Corporations usually need “Inc.,” “Corporation,” “Corp.,” or similar wording. Some words, like “bank,” “insurance,” or “university,” may be restricted.

Do not spend money on branding until you know the name is usable.

How you know this step worked: your name appears available in the relevant state or local search, and you know the exact legal name you will file.

Step 3: File the right registration

Now file only what applies.

If you are a sole proprietor using your legal name:

You may not need a state formation filing. You may still need local business licenses, tax registrations, or professional permits depending on what you do and where you operate.

If you need a DBA:

File the DBA with the required office. Depending on your location, this could be the county clerk, city, Secretary of State, or another agency. Some places require publication in a local newspaper. Others do not.

A DBA usually includes:

  • Owner name.
  • Business name.
  • Business address.
  • Type of business.
  • Signature and filing fee.

If you are forming an LLC:

File Articles of Organization, sometimes called a Certificate of Formation, with your state. You will usually provide:

  • LLC name.
  • Principal office address.
  • Registered agent name and address.
  • Organizer name.
  • Management type, such as member-managed or manager-managed.

After approval, create an operating agreement. Some states require one. Even when not required, it helps define ownership, decision-making, and what happens if someone leaves.

If you are forming a corporation:

File Articles of Incorporation, sometimes called a Certificate of Incorporation. You will usually provide:

  • Corporate name.
  • Registered agent.
  • Business address.
  • Shares authorized.
  • Incorporator information.

After approval, prepare bylaws, appoint directors, hold an initial meeting, and issue shares according to your records.

How you know this step worked: you receive an approved filing, stamped document, certificate, or confirmation from the filing office. Save it as a PDF.

Step 4: Get an EIN if you need one

An EIN is a federal tax ID from the IRS. It is free when you apply directly through the IRS.

You generally need an EIN if:

  • You have employees.
  • Your business has more than one owner.
  • You form a corporation or partnership.
  • Your bank requires one for a business account.
  • You want to avoid using your Social Security number on business forms.

A single-member LLC with no employees may not always be required to have an EIN for federal tax purposes, but many owners still get one because banks, payment processors, and vendors often ask for it.

How you know this step worked: you receive an EIN confirmation letter or notice from the IRS. Save it with your formation documents.

Step 5: Set up taxes, licenses, and permits

This is where many founders think they are done too early. State formation does not automatically give you every license or tax account you need.

Check whether you need:

  • A city or county business license.
  • A sales tax permit or seller’s permit.
  • A home occupation permit.
  • A professional license.
  • Employer payroll tax registration.
  • Industry permits for food, health, childcare, construction, alcohol, transportation, or similar regulated work.

Your requirements depend on your business activity and location. A web designer, candle seller, food truck, and home daycare can have very different obligations.

How you know this step worked: you have a list of required licenses and tax registrations, and each one is either filed, not applicable, or assigned a deadline.

Step 6: Open a business bank account

Open a separate business bank account before you mix customer payments with personal spending.

Banks commonly ask for:

  • Your approved LLC or corporation filing, if you formed an entity.
  • Your DBA certificate, if using a trade name.
  • Your EIN.
  • Your personal ID.
  • Your operating agreement or bylaws, especially for multi-owner businesses.

If you are a sole proprietor, the bank may ask for your DBA certificate and EIN or Social Security number.

How you know this step worked: business income and expenses can flow through an account that is separate from your personal account.

Step 7: Keep your business registration active

Registration is not always one-and-done.

Add these to your calendar:

  • Annual or biennial state reports.
  • Franchise tax or annual state fees, if your state requires them.
  • Registered agent renewals.
  • DBA renewal deadlines.
  • Local business license renewals.
  • Sales tax filing dates.
  • Payroll tax filing dates, if you hire.

Missing a renewal can cause penalties or loss of good standing.

How you know this step worked: you have a simple compliance calendar with due dates, agencies, and login information.

Quick decision guide

Use this shortcut if you are stuck:

  • “I am freelancing under my own name.” Start as a sole proprietor, then check local license and tax rules.
  • “I want to use a business name, but I am not ready for an LLC.” Look into a DBA.
  • “I want personal and business separation.” Look into an LLC.
  • “I have a co-founder and we want a simple small business structure.” Look into an LLC and create an operating agreement.
  • “I want to raise money and issue stock.” Talk to a startup attorney or tax professional about a corporation.
  • “I already formed an LLC but want to use a different public brand name.” You may need a DBA for the LLC.

The best registration is not the most complicated one. It is the one that fits your business now and does not create unnecessary paperwork.

What to do next

Pick your path, check your name, and file the smallest set of registrations you actually need. Then handle your EIN, licenses, bank account, and renewal calendar.

If you want help turning those choices into a clear sequence, Stratify can build a personalized step-by-step roadmap for your business setup.

Frequently asked questions

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