How To Register an Online Business in 5 Steps (2026)

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Online businesses can operate as sole proprietorships, partnerships, limited liability companies (LLCs), or corporations. Your business structure and location determine how to register an online business.

Forming an LLC or corporation can protect your personal assets from business debts and lawsuits. Sole proprietors may also need tax registrations, licenses, and permits before making their first sale.

This guide explains how to register a US online business and understand the federal, state, and local requirements that apply to you.

What does registering a business mean?

Registering a business means filing paperwork with government agencies to establish a legal entity, registering a business name, and meeting any tax and licensing requirements.

Depending on your business, you may need to:

• File state formation documents for an LLC or corporation
• Register a doing business as (DBA) name
• Get the required federal and state tax ID numbers
• Apply for licenses and permits required by your industry or location

You can also apply to register trademarks for your business name, logo, or slogan. Trademark registration is optional and provides additional legal protection for your brand.

Do you need to register your business?

Sole proprietors selling under their legal name are typically exempt from business formation filings. Tax registration and licensing requirements can still apply.

Check these requirements before launching your online business:

• State registration. Forming an LLC or corporation involves filing formation documents with a state agency, usually the secretary of state. Operating in additional states may require registration there through a process called foreign qualification.
• Business name registration. Using a name other than your own legal name or your entity’s registered name may call for a DBA filing with your state, county, or city.
• Sales tax registration. Selling taxable goods or services may require you to register to collect sales tax. Remote sales can also result in registration when you meet a state’s economic nexus threshold. Thresholds and rules for marketplace sellers vary by state.
• Local licenses and permits. Your city or county may demand you acquire a business license, even if you sell exclusively online. Running the business from home may also require a home occupation permit or zoning approval.
• Industry licenses and permits. Selling regulated products, such as food or alcohol, requires additional approvals from federal, state, or local agencies. Requirements depend on the product and your business activities.

Check your secretary of state’s website, state revenue department, and city or county licensing office for the filings your business needs.

How to register your business

Follow these steps to register a business:

1. Pick your business name
2. Choose a business structure
3. Register with federal agencies
4. Register with state and local agencies
5. Register for taxes

1. Pick your business name

Create a shortlist of names that fit your products and brand. Shopify’s business name generator can help you develop ideas.

Search your secretary of state’s website or equivalent state business registry for existing names. Review the state’s naming rules, including required terms such as “LLC.”

Then check:

• Social media availability. Look for available handles that match your business name.
• Domain name availability. Use a domain name search tool to find an available web address.
• Trademark availability. Search the US Patent and Trademark Office (USPTO) trademark database for identical or similar names used for related goods or services. Search state trademark records and the web for businesses with unregistered trademark rights, too.

File the required business formation paperwork and register your domain separately. Some states also let you reserve a business name before filing formation documents.

2. Choose a business structure

Your business structure determines your personal liability, tax treatment, and filing requirements. The common options are:

• Sole proprietorship. One person owns the business, takes personal responsibility for its debts, and reports profits or losses on their personal tax return.
• Partnership. Two or more people share ownership. In a general partnership, partners are personally liable for business debts. A limited partnership (LP) has at least one general partner with personal liability and limited partners whose liability is generally capped at their investment. A limited liability partnership (LLP) gives partners liability protection under state law. Profits and losses pass through to the partners’ tax returns.
• Corporation. A separate legal entity that generally protects owners from personal liability for business debts. A standard C corporation pays corporate income tax, and shareholders pay tax on dividends. An eligible corporation can elect S corporation status, which passes income and losses through to shareholders for federal tax purposes.
• Limited liability company (LLC). A structure that protects owners’ personal assets and offers flexible management. Profits and losses pass through to owners’ tax returns by default. An LLC can elect corporate taxation, including S corporation treatment if it qualifies.

Sole proprietorships and general partnerships often require no state formation filing. LLCs, corporations, LPs, and LLPs involve state paperwork. An accountant or business attorney can help you assess the taxes and liability associated with each option.

3. Register with federal agencies

Federal filings cover tax identification, trademark protection, and tax-exempt status. If you’re creating an LLC or corporation, complete the state formation process in step 4 before applying for an EIN.

Employer identification number

An employer identification number (EIN) identifies your business for federal tax purposes. The IRS requires one for businesses with employees, corporations, partnerships, and certain other tax situations.

Some sole proprietors with no employees can use their Social Security number. They can also request an EIN for banking or state tax purposes. Apply free through the IRS EIN application page.

Trademark protection

A trademark identifies the source of goods or services, such as through a business name, product name, logo, or slogan.

Rights can arise from using the mark in commerce. Federal registration through the USPTO adds nationwide rights and legal protections for your brand.

State trademark registration is a separate application through the relevant state office.

Nonprofit status

Many organizations seeking recognition as a 501(c)(3) charity apply to the IRS using Form 1023. Smaller organizations may be able to use the shorter Form 1023-EZ. Check the eligibility worksheet before applying.

A tax-exempt nonprofit may still owe employment taxes on wages and income tax on unrelated business activities. It may also have annual IRS filing requirements.

4. Register with state and local agencies

File formation documents with your secretary of state or equivalent business filing agency. You may have to check with your city or county separately for business licenses, zoning approvals, and industry permits. Many agencies accept applications online.

Prepare the information and payments required by your state:

• Business name and address. Your legal business name and principal operating address.
• Owner or management details. Names and addresses of the owners, members, managers, or directors requested on the form.
• Registered agent details. The agent’s name and registered office address.
• Share details. For corporations, the number and classes of authorized shares.
• Formation documents. Usually articles of organization for an LLC or articles of incorporation for a corporation. Names vary by state.
• Filing fees. Check the agency’s fee schedule for your entity type and specific forms.

Registered agent

For an LLC, corporation, or nonprofit corporation, you need a registered agent when filing. The agent receives official notices and other legal documents for the business.

Follow your state’s rules for who can act as an agent and the required in-state address. You can use a registered agent service or act as your own agent where permitted. Businesses registered in multiple states generally need an agent in each state.

5. Register for taxes

Register with each state tax agency where your business has a tax obligation. For sales tax, that usually means selling taxable goods or services and having an economic nexus—a connection to the state that creates a collection requirement.

An economic nexus can arise when remote sales meet a state’s threshold. Check each state’s threshold, measurement period, and rules for counting sales.

For example, California’s economic nexus threshold is more than $500,000 in sales of tangible personal property delivered into the state during the current or preceding calendar year. Kansas uses more than $100,000 in sales to Kansas customers over the same period.

Alaska, Delaware, Montana, New Hampshire, and Oregon have no statewide general sales tax. Local sales taxes can still apply in Alaska.

Other tax accounts may also be required:

• Business income and franchise taxes. Check your state’s requirements for your entity. California generally charges LLCs a minimum $800 annual tax. Texas generally calculates franchise tax using taxable margin and has a revenue threshold below which no tax is due.
• Employer payroll accounts. If you hire employees, register for applicable state income tax withholding and unemployment insurance accounts. Your state’s tax and workforce agencies provide the applications.

After receiving your sales tax registration, you can set up sales tax collection in Shopify:

1. Go to Settings > Taxes and duties in your Shopify admin.
2. Under Manage sales tax collection, select United States, then Add new state.
3. Choose the state where you’re registered and enter your sales tax ID.
4. Review any applicable shipping tax options, then click Collect taxes.

Shopify Tax can track your sales against state thresholds and calculate tax based on customers’ addresses and product categories. File returns and remit tax according to each agency’s schedule.

Doing business in more than one state

Selling across state lines can create separate obligations for business registration and sales tax:

• Foreign qualification authorizes an entity formed in one state to operate in another. An office, employees, or ongoing local operations may trigger it. Apply through the state’s business filing agency, appoint the required registered agent, and submit any requested certificate of good standing.
• Sales tax registration authorizes your business to collect and remit sales tax. Apply through the state tax agency when an economic nexus creates a collection obligation. You may need sales tax registration in a state where foreign qualification is unnecessary.

Check both requirements as your business expands, along with local licenses and recurring reports.

Missing a required foreign qualification can lead to late fees, civil penalties, and restrictions on bringing a lawsuit in that state. Texas, for example, can bar an unregistered entity from pursuing a court case until it registers and charge additional fees for late registration. Unpaid taxes can also accrue penalties and interest.

Registering a trade name or DBA

A trade name, or DBA, lets you operate under a name other than your legal name or your entity’s registered name. For example, an LLC could use a DBA to launch an online store under a new name.

DBA requirements depend on your location and business structure. Filings may go to a secretary of state, county clerk, or city office. In Texas, for example, sole proprietors and general partnerships file with county clerks, while LLCs and corporations file with the secretary of state.

To register a DBA:

• Check the relevant business name registry
• Search for potential conflicts with existing trademarks
• Submit the required form and filing fee
• Complete any required newspaper publication and record the renewal deadline

A DBA registers an operating name for your existing business. Liability protection depends on the underlying business structure.

Tips for registering your online company

Make your registration faster and easier by following these four tips.

Use a virtual mailbox service

A virtual mailbox receives physical business mail and offers scanning and forwarding services. It can provide a separate address for correspondence when you operate from home.

A registered agent accepts lawsuits and other legal documents at the address listed for that purpose. Mailbox services and registered agent services have separate responsibilities, even when one provider offers both.

Check each address field’s requirements before using a virtual mailbox on formation documents. Some states require a physical principal office address. Oregon, for example, excludes virtual offices and mail-forwarding addresses from its principal office and registered office fields.

Shopify Payments in the United States requires a physical home or business address, depending on your business type. Use the actual residential or operating address requested for verification.

Hire help

A business attorney can help with entity formation, ownership agreements, and industry licensing. An accountant or qualified tax professional can assess tax registrations and filing obligations, especially when you operate in multiple states.

Shopify’s directory of sales tax experts has providers who offer guidance on US state sales tax and liability.

Keep your registrations up to date

Track the filings and renewals required for your business:

• Initial and recurring reports. Some states require an initial report within 30 to 90 days of formation. Annual or biennial reports may follow.
• Licenses, permits, and DBAs. Renew each registration by its expiration date.
• Tax returns and payments. Follow the applicable schedules for sales, income, and payroll taxes.
• Business details. Submit required updates when your address, ownership, or registered agent changes.

Set calendar reminders when each registration is approved. Review your filing calendar annually and whenever you hire employees, change locations, or expand into another state.

Go to the source

Confirm forms, fees, and deadlines on the responsible agency’s website. Check your state business filing agency for entity registration, the revenue department for taxes, and city or county offices for local licenses and DBA rules. The IRS state government directory links to official state resources.