U.S. Company Business License Application Guide Step-by-Step Instructions for Registering a Business

How to Apply for a Business License in the United States A Comprehensive Guide to Easily Register Your Company

Starting a business in the United States is the dream of many entrepreneurs, and registering a company is the first step toward making that dream a reality. In recent years, with the global economy recovering and the U.S. government continuously improving its support policies for small and medium-sized businesses, more and more international entrepreneurs have chosen to register companies in the U.S. According to data released by the U.S. Census Bureau in early 2025, the number of newly registered companies across the country increased by nearly 12% year-on-year in 2025, showing strong entrepreneurial vitality.

If you're planning to start a business in the U.S. but are unfamiliar with the process of applying for a business license, this comprehensive guide will provide you with clear and practical steps and advice to help you complete the registration smoothly.

1. Determine Your Company Structure Choose the Right Legal Entity

When registering a company in the U.S., the first step is to decide on the legal structure of your business. Common types of business entities include

Sole Proprietorship Suitable for small businesses, easy to register, but the owner is personally liable for all debts and obligations.

Limited Liability Company LLC One of the most popular business forms, offering flexibility and limited liability protection.

Corporation C Corp or S Corp Suitable for larger businesses with plans to raise capital.

Partnership Operated by two or more partners.

The choice of business structure affects your tax obligations, legal liabilities, and management structure. For example, LLCs have become the preferred choice for startups in recent years due to their flexibility and asset protection benefits. According to statistics from the U.S. Small Business Administration SBA, over 60% of new businesses registered in 2025 were LLCs.

2. Choose the Right State for Registration Not Necessarily California or New York

Many people mistakenly believe that they must register their company in California or New York. In fact, U.S. law allows businesses to register in any state. When choosing a state, consider the following factors

Tax Policies States like Delaware, Nevada, and Wyoming are known for their business-friendly tax policies.

Legal Environment Delaware, in particular, is renowned for its mature corporate legal system and is the registration state of choice for many large corporations.

Operational Location If your company primarily operates in a specific state, it’s usually advisable to register there to avoid additional compliance costs.

For example, if your company headquarters is in Texas but you register in Delaware, you’ll need to apply for a foreign qualification in Texas, which increases compliance costs.

3. Register Your Company Name and Conduct a Trademark Search

Before officially registering your company, you must choose a legal and unique name. You should check the availability of the name on the official website of the state where you plan to register.

To avoid future trademark disputes, it’s also recommended to conduct a trademark search on the U.S. Patent and Trademark Office USPTO website to ensure that your intended brand name or logo hasn’t already been registered.

4. File Your Company Registration Documents

Registering a company typically requires filing the following documents

Articles of Incorporation for corporations

Articles of Organization for LLCs

These documents generally include the company name, registered address, shareholder information, and business purpose. You can file them online through the state’s official website or use a registered agent service.

For example, to register an LLC in California, you must submit Form LLC-1 to the California Secretary of State and pay a $100 registration fee. Additionally, California requires all LLCs to file a Statement of Information within 30 days of registration.

5. Obtain an Employer Identification Number EIN

An Employer Identification Number EIN is a unique identifier assigned by the Internal Revenue Service IRS to businesses. It functions similarly to a social security number for your company.

Regardless of whether you have employees, you will need an EIN to open a business bank account, file taxes, and apply for business licenses. Applying for an EIN is completely free and can be done online via the IRS website, with the number typically issued within minutes.

6. Apply for Business Licenses and Industry Permits

Completing company registration does not automatically mean you can start operating. You must also apply for a business license based on the requirements of your city or county. Application procedures and fees vary by location.

For example, in New York City, you need to apply for a general business license through the Department of Consumer and Worker Protection DCWP. Businesses in the food service industry must also obtain additional health and safety permits.

Certain industries, such as healthcare, construction, and finance, may require specific licenses to ensure compliance with regulatory standards.

7. Open a Business Bank Account and Establish Financial Systems

After completing registration, the next step is to open a business bank account. Most U.S. banks require documents such as your EIN, company formation documents, and business license as part of the account-opening process.

Additionally, it’s advisable to establish a proper financial system early on, including

Choosing accounting software e.g., QuickBooks

Setting up tax accounts for your business

Hiring a professional accountant or using financial and tax services

Good financial management not only helps ensure tax compliance but also lays a solid foundation for future financing and expansion.

8. Comply with Tax and Annual Reporting Requirements

U.S. companies are required to file annual tax returns with both the federal government and the state, and to pay applicable taxes.

LLCs can choose to be taxed as sole proprietorships, partnerships, or corporations.

C Corporations are subject to corporate income tax.

Most states also require companies to file an Annual Report and pay a fee. For example, LLCs in Delaware must pay an annual franchise tax of $300.

Conclusion

Although the process of registering a company in the U.S. may seem complex, following the correct steps and leveraging professional services can make the process manageable and efficient. In recent years, the U.S. has been continuously streamlining its registration procedures to improve the ease of doing business.

Whether you're a local entrepreneur or an international investor, the U.S. offers a dynamic and supportive environment for launching and growing your business. Now is the time to take the first step-start by choosing the right business structure and begin your entrepreneurial journey in the United States.