Why Registration Comes Before Revenue

Many first-time founders make the mistake of chasing customers before sorting out the legal groundwork. Operating without proper registration doesn't just create compliance risk — it can expose you personally to business debts and lawsuits, disqualify you from small business loans, and create tax problems that compound over time.

This checklist walks through every registration step you need to complete before you open your doors. Some steps take minutes; others require government processing time. Work through them in order, since several later steps — like opening a business bank account — depend on completing the earlier ones first.

For a broader view of what formalising a business involves, see our guide to turning a business idea into a legal entity. This checklist is also part of the complete beginner's guide to launching a small business.

Operating Without Registration Has Real Consequences

Running a business before completing required registrations can result in back taxes, government fines, and personal liability for business debts — even if you operate as an LLC. In some industries, operating without the correct licence is a criminal offence. Do not accept revenue from customers until your core registrations are confirmed.

Tools You'll Need

Before working through the checklist, gather the resources below. Having these on hand prevents delays mid-process.

Required

IRS EIN Online Application (IRS.gov)

Apply for your federal Employer Identification Number instantly — required before opening a business bank account or hiring.

Required

State Secretary of State Website

File formation documents, check name availability, and access state-specific registration requirements for your entity type.

Required

SBA Business License & Permits Tool

Look up federal, state, and local licence requirements by business type and location using the SBA's free online resource.

Optional

USPTO Trademark Electronic Search System (TESS)

Search existing federal trademarks before committing to a business name or logo.

Required

Accounting or Bookkeeping Software

Track income, expenses, and tax obligations from your first transaction — essential for accurate tax filing.

Optional

Registered Agent Service

Receive official legal and state correspondence on behalf of your business if you lack a consistent in-state physical address.

The Registration Checklist

Work through each group in sequence. Items marked must are non-negotiable for virtually all US businesses. Should items are strongly recommended, and nice to have items add protection or efficiency without being legally required.

Choose and Formalise Your Business Structure

Decide on a legal structure (sole proprietorship, LLC, partnership, S-corp, or C-corp) based on your liability needs, tax situation, and growth plans. Must
File your formation documents (Articles of Organization for an LLC, Articles of Incorporation for a corporation) with your state's Secretary of State office and pay the required filing fee. Must
Draft an operating agreement (for LLCs) or corporate bylaws (for corporations) to define ownership, roles, and decision-making rules. Should
Check whether your state requires a registered agent and, if so, designate one with a physical in-state address. Must

Reserve and Register Your Business Name

Search your state's business name database to confirm your chosen name is available before filing. Must
File a DBA ('doing business as') or fictitious name registration with your county or state if you plan to operate under a name different from your legal entity name. Must
Run a USPTO trademark search and consider filing for a federal trademark if your brand name will be used across state lines. Should
Secure a matching domain name and check social media handle availability to protect your brand online. Nice to have

Obtain Federal and State Tax Identification

Apply for an Employer Identification Number (EIN) from the IRS — this is free and can be done online at IRS.gov in minutes. Must
Register with your state's department of revenue or taxation to obtain a state tax ID, which is required for collecting sales tax and filing state returns. Must
Determine your federal income tax filing method based on your entity type (Schedule C, Form 1065, Form 1120-S, or Form 1120) and set up a system for quarterly estimated tax payments. Must

Secure Licences and Permits

Identify all federal licences your industry requires — regulated sectors such as food, alcohol, transportation, firearms, and financial services each have specific federal permit requirements. Must
Apply for a general business licence from your state (required in most states) and any state-level professional or occupational licences relevant to your trade. Must
Contact your city or county clerk's office to obtain a local business licence and confirm zoning approval for your operating address. Must
Check whether your location requires a Certificate of Occupancy (CO) before customers or employees can legally enter the premises. Should

Set Up Business Banking and Finance

Open a dedicated business checking account using your EIN and formation documents — never commingle personal and business funds. Must
Apply for a business credit card or line of credit to begin building a separate business credit profile from day one. Should
Set up accounting software or a bookkeeping system before recording your first transaction. Should

Register as an Employer (If Hiring)

Register with your state's labor or workforce agency to set up state unemployment insurance (SUI) tax withholding before your first payroll run. Must
Obtain workers' compensation insurance as required by your state before any employee begins work. Must
Set up a payroll system that handles federal and state withholding, W-4 collection, and new-hire reporting to your state agency. Must

Once you have your EIN and state registrations in place, understanding your business finances becomes your next priority.

After Registration: What Comes Next

Completing this checklist means your business exists legally — but operating it well is a separate discipline. Your immediate next priorities should include setting up accounting software, understanding your quarterly estimated tax obligations, and separating every personal and business transaction from day one.

On the licensing side, requirements shift as your business grows. Adding employees, moving locations, or entering new industries can trigger new permit requirements. Build a habit of reviewing your licence and registration status annually.

For a detailed breakdown of the permits and licences your specific business type may require, see our licences and permits reference guide. Once you're operational, the complete operational playbook for small businesses covers everything from cash management to hiring your first employee.

This article provides general informational guidance only and does not constitute legal, tax, or financial advice. Requirements vary by state, locality, and industry. Consult a qualified attorney, CPA, or business adviser for guidance specific to your situation.