Registering your business is an important step to complete before launching your business. Business registration typically is required by state agencies, such as the secretary of state, but there are some circumstances in which you’ll want or need to obtain licenses, permits, or registrations with local or federal agencies. In this article, Forbes Advisor explains how to register your business so you can get your business up and running.
Are You Required To Register Your Business?
Whether you are required to register your business will depend on your industry and location. In most cases, businesses, including limited liability companies (LLCs), partnerships, and corporations, are required to register with the applicable state agency, often the secretary of state. Meanwhile, Sole proprietorships typically don’t need to obtain business registration.
Registering Your Business With Local and County Agencies
While you likely don’t need to register your business with local or county agencies, depending on the nature of your business, you may need to obtain permits or licenses to conduct business. You may also need to register your trade name or doing-business-as (DBA) if your business uses a name that’s different from the legal business name.
Registering Your Business With State Agencies
Most states require that businesses—including LLCs, corporations, and partnerships—register with applicable state agencies if they conduct business activities in the state. Conducting business activities can include:
- Having a physical presence in the state
- Meeting in-person with clients in the state
- Receiving a significant portion of the company’s revenues within the state
- Employers work in the state
You will need to check the state’s requirements, but, in most cases, you can register your business with the secretary of state’s office.
To register your business in a state, you will need to name a registered agent who has the authority to receive official papers and legal documents on behalf of your business. The registered agent needs to be located in the state where the business is registered.
Registering Your Business With Federal Agencies
In most cases, you don’t need to register your business with federal agencies except to obtain your employer identification number (EIN) for tax purposes. Certain industries do require registration, and you may want to register for federal trademark protection. If you wish to be taxed as an S Corporation (S-corp), you will also need to file a Form 2553 with the IRS.
Even if you aren’t required to register with federal agencies, your business is still required to comply with federal laws and regulations, such as workplace safety requirements of the Occupational Health and Safety Administration (OSHA).
When You Do Business in More Than One State
Foreign Qualification
If you do business in more than one state, you will need to obtain foreign qualification in other states in which you do business. To obtain foreign qualification, most states require that a business file a certificate of authority with that state and a certificate of good standing from the state of formation.
How To Register a Business Name
The business name is the legal name that will identify your business. You’ll need a business name to submit a Form SS-4 to receive an EIN. To register a business name, you will first need to form the business by creating the applicable formation documents—LLC operating agreement, partnership agreement, or shareholders’ agreement—and filing registration documents with the applicable state agency.
To register the business name, the name will need to be available in the state of formation. You can check with the state agency to see if the name is available. Most states have a business name lookup search tool available through their Secretary of State Business Division.
How To Change a Business Name
To fix clerical errors and typos in your business name, you can often file a certificate of correction. Meanwhile, if you want to make a substantive change to the legal business name, you will need to complete the following steps:
- Adopt a resolution approving the name change. If approval of shareholders, partners, or LLC members is required, the resolution will need to be signed by a requisite number of shareholders, partners, or members.
- Amend business formation documents. Depending on the type of business entity, this will include updating your LLC operating agreement, shareholders’ agreement, or partnership agreement as well as the articles of organization or articles of incorporation.
- File articles of amendment with the secretary of state or applicable state agency, along with the required filing fee.
- Notify state regulatory agencies, taxing authorities, and licensing agencies of the name change.
- Update name on business accounts and notify clients, vendors, and suppliers.
Before you register the new business name, you’ll need to confirm that the name is available in your state. You should also consider doing a Google search to see if there are any similar known business names and searching the United States Patent and Trademark Office (USPTO) database to confirm that the name isn’t trademark protected.
Registering a Trade Name
Changing the legal name of your business can be time-consuming and expensive, so you may prefer using a trade name or DBA for your business. If you choose to use a DBA or trade name, you may be required to file a separate registration for the DBA. You can check with your jurisdiction’s secretary of state to determine specific requirements and filing fees.