Manage your business
Run your business like a boss. Master day-to-day operations and prepare for success.
Pick your business location
Your business location determines the taxes, zoning laws, and regulations your business will be subject to. You'll need to make a strategic decision about which state, city, and neighborhood you choose to start your business in.
Research the best place to locate your business
You'll need to register your business, pay taxes, and get licenses and permits in the place you choose to locate your business.
Where you locate your business depends in part on the location of your target market, business partners, and your personal preferences. In addition, you should consider the costs, benefits, and restrictions of different government agencies.
Region-specific business expenses
You'll need to register your business, pay taxes, and get licenses and permits in the place you choose to locate your business.
Where you locate your business depends in part on the location of your target market, business partners, and your personal preferences. In addition, you should consider the costs, benefits, and restrictions of different government agencies.
Local zoning ordinances
If you buy, rent, build, or plan to work out of a physical property for your business, make sure it conforms to local zoning requirements.
Neighborhoods are generally zoned for either commercial or residential use. Zoning ordinances can restrict or entirely ban specific kinds of businesses from operating in an area.
You might have fewer zoning restrictions if you base your business out of your home, but zoning ordinances can still apply even to home-based businesses.
Zoning laws are typically controlled at the local level, so check with your department of city planning, or similar office, to find out about the zoning laws in your area.
Local zoning ordinances
If you buy, rent, build, or plan to work out of a physical property for your business, make sure it conforms to local zoning requirements.
Neighborhoods are generally zoned for either commercial or residential use. Zoning ordinances can restrict or entirely ban specific kinds of businesses from operating in an area.
You might have fewer zoning restrictions if you base your business out of your home, but zoning ordinances can still apply even to home-based businesses.
Zoning laws are typically controlled at the local level, so check with your department of city planning, or similar office, to find out about the zoning laws in your area.
Location, location, location
John and Kelly looked at what they needed in a business location and found the best spot to open their auto repair shop.
John and Kelly list what they need in a location for their auto repair shop and search the local area to see what’s available.
After evaluating all of their options, they decide to buy a large garage that’s close to business ready. The building is located near a major highway, so drivers can easily spot the business and its signs. John and Kelly search the U.S. Census Bureau website and find that 75% of households in the county have at least one automobile.
Before buying the building, John and Kelly consult a knowledgeable real estate lawyer who walks them through the fine print of the contract. They also contact the local planning agency to make sure the building is located in an appropriate business zone.
John and Kelly find out that the down payment and closing costs of the building add up to more than they budgeted for their business location. But the state offers loans specifically for small businesses. John and Kelly’s auto repair shop also qualifies for tax incentives because it’s located in an underutilized area.
With money from the state loan and tax incentives, John and Kelly are able to purchase the building for their auto repair shop.
State and local taxes
Consider the tax landscape for the state, county, and city. Income tax, sales tax, property tax, and corporate taxes can vary significantly from place to place.
In fact, some states are well-known for creating tax environments that are very friendly to certain kinds of companies. That’s part of the reason why tech startups, financial institutions, and manufacturing tend to concentrate in certain areas of the country.
Visit state and local government websites to find out what the tax landscape for your area looks like.
State and local government incentives
Some state and local governments offer special tax credits for small businesses. You might also find state-specific small business loans or other financial incentives.
Incentive programs and benefits are often related to job creation, energy efficiency, urban redevelopment, and technology.
Visit local SBA Offices, Small Business Development Centers, Women’s Business Centers state and local government websites to find more information.
Federal government incentives
The federal government offers benefits to small businesses that contract with the government and are based in underutilized areas. Check into the Historically Underutilized Business Zones (HUBZone) program to see if you qualify for preferential access to federal procurement opportunities.
Register your business
Register your business to make it a distinct legal entity. How and where you need to register depends on your business structure and business location.
Find out if you need to register your business
Your location and business structure determine how you’ll need to register your business. Determine those factors first, and registration becomes very straightforward.
For most small businesses, registering your business is as simple as registering your business name with state and local governments.
In some cases, you don’t need to register at all. If you conduct business as yourself using your legal name, you won’t need to register anywhere. But remember, if you don’t register your business, you could miss out on personal liability protection, legal benefits, and tax benefits.
More than a sign-up sheet
John and Kelly informed the proper authorities that they’re operating a business by registering their auto repair shop.
John and Kelly list what they need in a location for their auto repair shop and search the local area to see what’s available.
After evaluating all of their options, they decide to buy a large garage that’s close to business ready. The building is located near a major highway, so drivers can easily spot the business and its signs. John and Kelly search the U.S. Census Bureau website and find that 75% of households in the county have at least one automobile.
Before buying the building, John and Kelly consult a knowledgeable real estate lawyer who walks them through the fine print of the contract. They also contact the local planning agency to make sure the building is located in an appropriate business zone.
John and Kelly find out that the down payment and closing costs of the building add up to more than they budgeted for their business location. But the state offers loans specifically for small businesses. John and Kelly’s auto repair shop also qualifies for tax incentives because it’s located in an underutilized area.
With money from the state loan and tax incentives, John and Kelly are able to purchase the building for their auto repair shop.
Register with federal agencies
Beneficial ownership information (BOI) reporting
Many companies in the United States have to report information about their beneficial owners – the individuals who ultimately own or control the company. This report is made to the Financial Crimes Enforcement Network (FinCEN)(Link is external). FinCEN is a bureau of the U.S. Department of the Treasury. BOI reporting is a requirement of the Corporate Transparency Act of 2021.
Companies that are required to comply are called reporting companies. The majority of reporting companies must file their initial, updated or corrected reports by March 21, 2025. For additional information, refer to FinCEN’s BOI notice(Link is external) (PDF).
Beneficial ownership information reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information. FinCEN’s E-Filing system(Link is external) is simple, secure, and free of charge. Learn more about beneficial ownership information reporting at www.fincen.gov/boi(Link is external).
Other reporting requirements
Other business reporting requirements depend on the nature of your business. Most businesses will need to file to get a federal tax ID. Small businesses sometimes have to register with the federal government for trademark protection or tax-exempt status.
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If you want to trademark your business, brand or product name, file with the United States Patent and Trademark office(Link is external) once you’ve formed your business.
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If you want tax-exempt status for a nonprofit corporation, register your business as a tax-exempt entity with the IRS(Link is external).
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To create an S corp, you’ll need to file form 2553 with the IRS(Link is external).
Register with state agencies
If your business is a limited liability company (LLC), corporation, partnership, or nonprofit corporation, you'll probably need to register with any state where you conduct business activities.
Typically, you’re considered to be conducting business activities in a state when:
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Your business has a physical presence in the state
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You often have in-person meetings with clients in the state
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A significant portion of your company’s revenue comes from the state
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Any of your employees work in the state
Some states allow you to register online, and some states make you file paper documents in person or through the mail.
Most states require you to register with the Secretary of State’s office, a Business Bureau, or a Business Agency.
Look up your state
Select your state and hit select to view the results.
State / Territory
Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming District of Columbia American Samoa Guam Northern Mariana Islands Puerto Rico United States Minor Outlying Islands Virgin Islands, U.S.
Get a registered agent
If your business is an LLC, corporation, partnership, or nonprofit corporation, you'll need a registered agent in your state before you file.
A registered agent receives official papers and legal documents on behalf of your company. The registered agent must be located in the state where you register.
Many business owners prefer to use a registered agent service rather than take on this role themselves.
File for foreign qualification
If your LLC, corporation, partnership, or nonprofit corporation conducts business activities in more than one state, you might need to form your business in one state and then file for foreign qualification in other states where your business is active.
The state where you form your business will consider your business to be domestic, while every other state will view your business as foreign. Foreign qualification notifies the state that a foreign business is active there.
Foreign qualified businesses typically need to pay taxes and annual report fees in both their state of formation and states where they’re foreign qualified.
To foreign qualify, file a Certificate of Authority with the state. Many states also require a Certificate of Good Standing from your state of formation. Each state charges a filing fee, but the amount varies by state and business structure.
Check with state offices to find out foreign qualification requirements and fees.
File state documents and fees
In most cases, the total cost to register your business will be less than $300, but fees vary depending on your state and business structure.
The information you’ll need typically includes:
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Business name
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Business location
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Ownership, management structure, or directors
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Registered agent information
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Number and value of shares (if you’re a corporation)
The documents you need — and what goes in them — will vary based on your state and business structure.
Business Structure | Document | Description |
|---|---|---|
Corporation (any kind) | Bylaws or resolutions | Bylaws (called resolutions for nonprofits) are the internal governance documents of a corporation. They define how key business decisions are made, as well as officer and shareholders' duties, powers, and responsibilities. It's widely recommended to create one to protect yourself and your business, even if your state doesn’t mandate it. |
Corporation (any kind) | Articles of incorporation | The articles of incorporation — or a certificate of incorporation — is a comprehensive legal document that lays out the basic outline of your business. It's required by every state when you incorporate. The most common information included is the company name, business purpose, number of shares offered, value of shares, directors, and officers. |
Limited liability partnership | Limited liability partnership agreement | A limited liability partnership agreement is an internally binding document between all partners that defines how business decisions get made, each partner's duties, powers, and responsibilities. It's widely recommended to create one to protect yourself and your business, even if your state doesn’t mandate it. |
Limited liability partnership | Certificate of limited liability partnership | This simple document describes the basics of your limited liability partnership. It notifies the state of the partnership’s existence and contains basic business information like the company name, address, and partner names. Not all states require it, and some states call it by a different name. |
Limited partnership | Limited partnership agreement | A limited partnership agreement is an internally binding document between all partners that defines how business decisions get made, each partner's duties, powers, and responsibilities. It's widely recommended to create one to protect yourself and your business, even if your state doesn’t mandate it. |
Limited partnership | Certificate of limited partnership | This simple document describes the basics of your limited partnership. It notifies the state of the partnership’s existence and contains basic business information like the company name, address, and partner names. Not all states require it, and some states call it by a different name. |
LLC | LLC operating agreement | An operating agreement describes the structure of your company's financial and functional decisions. It defines how key business decisions are made, as well as each member’s duties, powers, and responsibilities. It's widely recommended to create one to protect yourself and your business, even if your state doesn’t mandate it. |
LLC | Articles of organization | Articles of organization is a simple document that describes the basics of your LLC. It includes business information like the company name, address, member names, and the registered agent. |
In addition, some states also require you to register your DBA — a trade name or a fictitious name — if you use one. Check with your state government office(Link is external) to determine what's required in your area.
Register with local agencies
Typically, you don’t need to register with county or city governments to actually form your business.
If your business is an LLC, corporation, partnership, or nonprofit corporation, you might need to file for licenses and permits from the county or city.
Some counties and cities also require you to register your DBA — a trade name or a fictitious name — if you use one.
Local governments determine registration, licensing, and permitting requirements, so visit local government websites to find out what you need to do.
Stay up to date with registration requirements
Some states require you to provide reports soon after registering depending on your business structure.
You may need to file additional documentation with your state tax board or franchise tax board. These filings are typically referred to as Initial Reports or Tax Board registration, and most often need to be filed within 30-90 days after you register with the state.
Check with your local tax office or franchise tax board, if it applies to you.