To register a small business in the US, decide on a structure, choose and check a name, get an EIN only if you need one, sort out your state tax registration, then apply for the licenses and permits your activity requires. A one-person business under your own name has nothing to file to exist: the SBA says you are automatically a sole proprietorship if you do business without registering another type. An LLC or corporation does have to be filed with the state.
The order that avoids rework
- Pick the structure. Sole proprietorship means no state filing. An LLC is formed under state law, typically by filing articles of organization. Result: you know whether a state filing is part of your plan. The LLC vs sole proprietorship vs S corp guide helps you choose.
- Choose and check your name. Result: a name that is free at the state level and clear of trademark conflicts.
- Register a DBA if you use a name other than your own legal name. Result: the state, county or city has your trade name on file where required.
- Apply for an EIN only if one of the triggers below applies, or if a bank or licensing office wants one. Result: a nine-digit federal tax number, free.
- Find out your state tax registration needs. Result: you know which state taxes apply to you and where to register.
- Apply for licenses and permits. Result: you can legally operate your specific activity at your location.
- Open a business bank account. Result: business money and personal money stay apart from day one.
Steps 1 and 2: the name, and the four kinds of registration
The SBA separates four registrations that people tend to blur together. Each is legally independent, so you are not required to use the same name for all of them, though most small businesses do (SBA).
| Registration | What it does | Where |
|---|---|---|
| Entity name | Protects the name at the state level; most states will not accept a name already registered by someone else | Your state, when you form an LLC or corporation |
| Trademark | Protects business, product and service names at the federal level | Federal. Search the USPTO trademark database before you commit to a name |
| DBA (trade name, fictitious name, assumed name) | Gives no legal protection by itself, but may be legally required | The state, county or city where the business is located |
| Domain name | Protects your web address; it does not have to match your legal name, trademark or DBA | An accredited registrar |
If you run a sole proprietorship under your own legal name, the SBA says you do not need to register anywhere. If you add a business name, most states require a DBA, and some counties and cities do too, so check local government offices. Trademark law still applies to a DBA. The SBA also says that a DBA and an EIN allow you to open a business bank account.
Step 4: do you need an EIN?
An EIN is your business's federal tax ID number. It is free from the IRS, and the IRS warns that you never have to pay a fee for one (IRS). Whether you need one depends on your situation.
| Your situation | EIN? |
|---|---|
| Sole proprietor, no employees, no retirement plan, no excise-type returns | Not required. You use your Social Security number, and the Schedule C instructions say to leave the EIN line blank if you have none. |
| You hire employees | Yes |
| You have a qualified retirement plan, or must file employment, excise, alcohol, tobacco or firearms returns | Yes |
| You form a corporation or a partnership | Yes, and a sole proprietorship that incorporates or enters a partnership needs a new EIN |
| Single-member LLC with no employees and no excise tax liability | Generally no, but you may get one for a bank account or if state law requires it |
| A bank, licensing office or client asks for one | Optional; you can apply for free |
Sources: IRS Schedule C instructions (2025), IRS single member LLC page and SBA tax ID page. Requirements change, so confirm on irs.gov before you apply.
How to get one
- Apply online on the IRS site. You need the responsible party's SSN or ITIN, the application must be finished in one session, and it expires after 15 minutes of inactivity.
- The IRS issues one EIN per responsible party per day. A sole proprietor generally needs only one EIN, even with several businesses or trade names (Form SS-4 instructions).
- Form an LLC or corporation with the state first, or the application may be delayed.
- The instructions also describe fax and mail options. Use only one method per business, so you do not end up with two EINs.
- If your responsible party changes, report it within 60 days on Form 8822-B.
Step 5: state tax registration
The SBA says the need for a state tax ID ties directly to whether your business must pay state taxes, and that the application process is similar to the EIN but varies by state. Employment taxes, unemployment insurance and workers' compensation rules also vary by state (SBA). Sales tax is set by states, and the rules differ, so ask your state Department of Revenue whether what you sell is taxable and when you must register. The SBA's tax page links to each state's department.
Step 6: licenses and permits
The SBA splits them into two groups (SBA):
- Federal. Needed when a federal agency regulates your activity. Examples the SBA lists include aviation (Federal Aviation Administration), firearms, ammunition and explosives (Bureau of Alcohol, Tobacco, Firearms and Explosives), radio and television broadcasting (Federal Communications Commission) and transportation (Department of Transportation). Ask the issuing agency about requirements and fees.
- State, county and city. States regulate a broader range of activities than the federal government. Locally regulated activities include construction, plumbing, restaurants, retail and vending machines. Start with your Secretary of State's website, then research county and city rules yourself.
Some licenses expire after a set period, so write down the renewal dates. Renewing is often easier than applying again.
Checklist by structure
| Item | Sole proprietor, own name | Sole proprietor, business name | LLC |
|---|---|---|---|
| State entity filing | None | None | Yes, articles of organization |
| DBA | Not needed | Usually, with the state, county or city | Check your state's rule if you use another name |
| EIN | Only if a trigger applies | Only if a trigger applies | Employees or excise taxes; more than one member is taxed as a partnership by default |
| State tax registration | Depends on your taxes | Depends on your taxes | Depends on your taxes |
| Licenses and permits | Depends on activity and location | Depends on activity and location | Depends on activity and location |
| Bank account | SSN or EIN | DBA plus SSN or EIN | Formation documents plus EIN |
On your tax return, Schedule C also asks for a six-digit business activity code. The NAICS code guide shows how to pick it. Business structure and tax rules vary by state, so confirm each step with your state and, for tax questions, a tax professional.
Frequently asked questions
Do I need to register my business if I work alone?
Not to exist as a business. The SBA says you are automatically a sole proprietorship if you do business without registering another type, and using your own legal name needs no registration. A DBA, state tax registration, licenses and permits may still apply.
Is an EIN free?
Yes. The IRS says you never have to pay a fee for an EIN and warns about websites that charge for one. You can apply directly on the IRS site.
What is a DBA and where do I register it?
A DBA is a trade, fictitious or assumed name. The SBA says to register it with the state, county or city where the business is located, and that most states require it if you use one. Check local offices, because requirements vary.
Where do I find out which licenses and permits I need?
For federal licenses, ask the agency that regulates your activity. For state licenses the SBA points to your Secretary of State's website, and for county and city rules you research local regulations yourself.
Sources: SBA: Choose your business name · SBA: Get federal and state tax ID numbers · SBA: Apply for licenses and permits · SBA: Open a business bank account · IRS: Get an employer identification number · IRS: Instructions for Form SS-4 (12/2025) · IRS: Instructions for Schedule C (Form 1040) (2025) · IRS: Single member limited liability companies · SBA: Pay taxes
