How to Start a Business in Any State (2026)

Before you file anything, make sure people will actually pay for what you're selling. Talk to potential customers. Search Google Trends to see if demand is growing or shrinking. Check if competitors exist (that's usually a good sign, not a bad one).

You don't need a perfect idea. You need one that solves a real problem for people who are willing to spend money on it. The best validation is getting someone to pay you before you've spent a dollar on registration.

You don't need a 50-page document. Write one page that answers four questions: What are you selling? Who is buying it? How will you reach them? What will it cost to get started?

If you're applying for a loan or grant, you'll need a more detailed plan. The SBA has free templates. But for most bootstrapped businesses, a one-page plan is more than enough to get started.

This is the biggest decision you'll make early on. Your four main options:

• Sole proprietorship: No paperwork, no filing fees, no liability protection. Good for low-risk side hustles.
• LLC: Filing fees range from $40 (Kentucky) to $500 (Massachusetts). You get personal asset protection and flexible taxes. This is the most popular choice for small businesses.
• S-Corp: Same liability protection as an LLC, but can save you money on self-employment taxes once you're earning $60K+ per year. Requires more paperwork.
• C-Corp: Required if you plan to raise venture capital. Double taxation makes it a bad fit for most small businesses.

For most people reading this guide, an LLC is the right answer. It's simple, cheap, and protects your personal bank account if something goes wrong.

Most businesses should register in the state where they physically operate. That's it. Don't overthink this.

You've probably heard that Delaware and Wyoming are great for business. That's true for venture-backed startups and holding companies. For a local business or online business run by one or two people, your home state is almost always the cheapest and simplest option. Registering in another state means you'll need a registered agent there, and you'll still have to register as a foreign entity in your home state. That's double the fees and double the paperwork.

If you're forming an LLC or corporation, your business name gets registered automatically when you file your formation documents. The state will reject your filing if someone else already has the name.

If you're operating as a sole proprietor under a name that isn't your legal name, you'll need to file a DBA ("doing business as"). DBA fees range from $10 to $150 depending on your state and county.

Before you settle on a name, search your state's business registry to make sure it's available. Also check if the .com domain is available and do a quick trademark search on USPTO.gov.

For an LLC, you'll file Articles of Organization with your state's Secretary of State (or equivalent office). For a corporation, it's Articles of Incorporation. Sole proprietors skip this step entirely.

Filing fees vary a lot by state. Kentucky charges $40 for an LLC. Massachusetts charges $500. Most states fall in the $50-$200 range. Many states now let you file online, which is usually faster and sometimes cheaper.

Processing times range from same-day (online in some states) to 4-6 weeks (paper filing in slower states). Most states offer expedited processing for an extra fee.

An EIN (Employer Identification Number) is like a Social Security number for your business. You need one to open a business bank account, hire employees, and file business taxes.

Getting one is free and takes about 5 minutes on the IRS website. You'll get your number instantly after submitting the online application. The IRS EIN application is available Monday through Friday, 7am to 10pm Eastern.

Even sole proprietors should get an EIN. It lets you use your EIN instead of your Social Security number on tax forms and with clients, which is better for privacy.

Keep your business money separate from your personal money. This isn't optional if you have an LLC or corporation. Mixing funds can "pierce the corporate veil" and eliminate your liability protection.

Most banks offer free or low-cost business checking. You'll need your EIN, formation documents, and a government-issued ID to open the account. Some banks let you do this online. Others require you to visit a branch.

Popular options: Chase, Bank of America, and Wells Fargo for traditional banking. Mercury, Relay, and Novo for online-only business banking with no monthly fees.

License requirements depend on your state, city, and industry. Some businesses need a general business license from their city or county. Others need industry-specific permits (food handling, professional licenses, home occupation permits, etc.).

The SBA has a tool at sba.gov that helps you figure out which licenses you need based on your location and business type. Your state's Secretary of State website usually has a checklist too.

Some states don't require a general business license at all. Others require one for every business. Check your state guide for specifics.

At minimum, you need a way to track income and expenses. QuickBooks Self-Employed starts at $15/month. Wave is free. A spreadsheet works too if you're just getting started.

Your tax obligations depend on your business structure. Sole proprietors report business income on Schedule C of their personal return. LLC members do the same (unless they elect S-Corp taxation). S-Corps and C-Corps have their own tax returns.

Set aside 25-30% of your profit for taxes if you're self-employed. Pay quarterly estimated taxes to avoid penalties. The IRS deadlines are April 15, June 15, September 15, and January 15.