Guide to Starting and Growing a Profitable Business
Registering your business is one of the first steps to starting up as mentioned in our previous post Guide to Starting and Growing a Profitable Business. This process varies depending on your chosen business structure, location, and industry, but it’s essential for legal protection, tax compliance, and credibility.
If you’re still deciding on the best structure for your business, check out our guide on Business Structures and Foundations before proceeding.

Registering Your Business Name
Choosing and registering your business name is one of the first steps in establishing your brand identity. The process varies depending on your business structure and how you intend to operate. If your business name differs from the legal name under which your business is registered, you may need to file a DBA (Doing Business As).
Sole proprietors or partnerships must often register a DBA when operating under a name that does not include the owner’s legal name. For example, if John Smith is running a consulting business under the name “Smith Consulting” instead of “John Smith Consulting Services,” he would likely need to register “Smith Consulting” as a DBA.
A DBA registration ensures that your business can legally operate under its chosen name. It also allows you to open business bank accounts, sign contracts, and establish brand recognition. However, a DBA does not grant exclusive rights to the name. Other businesses can still use it unless you take additional steps to protect it.
Checking Name Availability Before You Register
Before finalizing your business name, it’s essential to check for availability. This involves searching your state’s business registry, domain name availability, and the USPTO trademark database to ensure the name isn’t already in use.
Taking these steps early on can prevent legal disputes and costly rebranding efforts in the future. If your business name is available, registering it properly will help you secure your brand identity and set your business up for success.
Getting an eIN (Employer Identification Number)
What is an EIN and Why Do I Need One?
An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS that serves as a business’s identification for tax and legal purposes. It functions similarly to a Social Security number but is specifically for businesses. The EIN is used for tax filings, business banking, and hiring employees.
Who needs an EIN?
Not all businesses require an EIN, but if your business falls into any of the following categories, you’ll need to apply for one:
- Opening a Business Bank Account: Most banks require an EIN when opening a business account to ensure financial transactions are legally tied to the business rather than an individual.
- Hiring Employees: If your business plans to have employees, the EIN is essential for payroll tax reporting.
- Operating as an LLC, Partnership, or Corporation: Businesses structured as Limited Liability Companies (LLCs), partnerships, or corporations must have an EIN to comply with IRS regulations.
How to Apply for an EIN
Applying for an EIN is free and can be done quickly online through the IRS website. The process typically takes just a few minutes, and once approved, you’ll receive your EIN immediately.
For businesses based outside the U.S. or those unable to apply online, applications can also be submitted via fax or mail using IRS Form SS-4. However, these methods take significantly longer to process.
Securing Business Licenses and Permits
Every industry and location has specific licensing requirements, so it’s important to ensure your business is compliant before operating. Most businesses will need a general business license, which is issued by cities or counties to authorize legal operations within their jurisdiction.
If your business sells taxable goods or services, you’ll likely need a sales tax permit from your state’s tax authority. This allows you to collect and remit sales tax properly, avoiding legal issues down the line.
Certain industries, such as healthcare, finance, and construction, require professional or industry-specific licenses. These certifications ensure that businesses meet the regulatory and safety standards necessary to operate in their field.
To determine which licenses and permits apply to your business, check with your state’s Secretary of State office and local business authorities. Failing to secure the right permits can result in fines or even business closure, so it’s essential to get this step right from the start.
Registering with State and Local Authorities
In addition to federal requirements, your business must comply with state and local regulations. If you’re forming an LLC or corporation, you’ll need to register your business with the Secretary of State. This process establishes your business as a legal entity and ensures compliance with state laws.
Depending on your location and business activities, you may also need to complete state tax registration. This applies to businesses that are subject to state income tax, sales tax, or payroll tax, and registration is typically done through your state’s tax agency.
For businesses operating from a physical location, zoning permits may be required. These permits ensure that your business is compliant with local zoning laws, which regulate where certain types of businesses can operate. Before opening, check with your local government to confirm that your business meets zoning requirements.
Registering with State and Local Authorities
Once your business is registered, opening a business bank account is essential for keeping personal and business finances separate. This not only simplifies tax reporting and financial management but also provides legal protection by maintaining the distinction between personal and business assets.
Most banks require an EIN, business registration documents, and an operating agreement (for LLCs) to open a business account. Having these ready will streamline the process and help you get your finances in order quickly.
Beyond banking, staying compliant with state and federal regulations is crucial. This includes filing annual reports and renewing business licenses and permits as required. Keeping up with these requirements ensures that your business remains in good standing and avoids potential penalties.
Conclusion
Registering your business is just the beginning. While it’s an essential step in establishing your company, long-term success depends on building a strong foundation. From branding and marketing to financial planning, each element plays a crucial role in your business’s growth.
To set yourself up for success, check out our Guide to Starting and Growing a Profitable Business for expert insights and practical steps to help you navigate the next phase of your journey.
Need help with business registration or strategy? We offer expert guidance to ensure you’re on the right track. Contact us today!
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