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BUSINESS REGISTRATION
If you're here, you're ready to take the next step and register your business.
Getting set up properly early makes everything else easier — taxes, wholesale, markets, banking, and eventually scaling up. Here's the basic information you need to get started.
**Canadian registration resources coming soon.
Is This a Hobby or a Business?
This isn't just a philosophical question — the IRS has an opinion about it.
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If you're selling regularly and intend to keep doing so, you're running a business, even if it doesn't feel like one yet. A general rule of thumb: if you've turned a profit in at least 3 of the last 5 years, the IRS considers you a business. But even before that threshold, if you're selling with any consistency, tracking income, and reinvesting in your craft, you should be treating it like one.
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Why does it matter? Hobby income is taxed, but hobby expenses aren't deductible. Business income is taxed too — but your supplies, fees, and other costs can offset it. That's a meaningful difference at tax time.
Why Registering Your Business Matters
Legal Protection. Registration creates a separation between you and your business. If something goes wrong, your personal finances and assets aren't automatically on the line.
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A Business Bank Account. A registered business can open a dedicated account — keeping your personal and business money separate from day one.
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Wholesale Access. Many suppliers won't sell to you at trade pricing until you have a registered business. Registration is often the ticket in.
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Market and Craft Fair Applications. Some juried markets and venues require proof of registration before you can apply. Having your paperwork ready means fewer barriers to the events you want to do.
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Credibility. Boutiques and retail partners take registered businesses more seriously — especially when wholesale conversations come up.
Business Types — Which One Is Right for You?
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Sole Proprietorship: The default business structure. If you're selling and haven't registered anything, you're already one.
Pros for makers:
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Free to set up, no paperwork required
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Simple tax filing — income reported on your personal return
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No ongoing fees or annual filings​
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Cons for makers:
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No legal separation between you and your business
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Personal assets are at risk if something goes wrong
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Harder to open a business bank account or access wholesale suppliers​
​LLC (Limited Liability Company): A registered legal entity that separates you from your business.
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Pros for makers:
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Personal assets are protected if your business is sued
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Easier to open a business bank account
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More credibility with wholesale buyers and retail partners
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Taxes still pass through to your personal return.
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Cons for makers:
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Filing fees vary by state ($50–$500)
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Some states charge annual renewal fees
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Slightly more paperwork to maintain.
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S-Corp or C-Corp: Designed for larger businesses with employees and investors. You don't need to think about these yet — but they're worth knowing they exist for when your business grows into them.
How to Register — and What It Costs
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Business registration happens at the state level. Every state has a Secretary of State website where you can search your business name and file directly.
Sole Proprietorship: Free in most states
LLC: State filing fees typically range from $50–$500, with most states landing in the $50–$150 range. Some states charge an annual renewal fee to keep your LLC active.
There's no federal registration fee.
THE REGISTRATION PROCESS:
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1. Choose your business structure
2. Check your state's database to make sure your business name isn't already in use
3. File your Articles of Organization (LLC) or sole proprietor registration through your state's website
4. Pay the filing fee
5. Apply for an EIN (Employer Identification Number) at irs.gov.
An EIN is essentially a Social Security Number for your business, it's free, and it takes about 10 minutes. You'll need it to open a business bank account and work with suppliers.
6. Open a business bank account using your EIN and registration documents
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Makers in Arizona, Nebraska, and New York: your state requires you to publish a notice of your LLC formation in a local newspaper. It's an old law that is still enforceable, so check your state's specific requirements before you file.
State-by-state registration links are at the bottom of this page.
Licenses and Permits
Registering your business and getting licensed are two different things.
Registration establishes your business as a legal entity - but depending on where you live and what you make, you may also need a business license, a sales tax permit, or product-specific certifications.
Check out the Licenses + Certifications and Taxes pages for the more information.
More Information
Business Structure: How to Choose the Right One
Nerdwallet's beginner‑friendly overview of the most common business structures — sole proprietorship, partnership, LLC, S‑corp, and C‑corp — and what to consider when choosing the right fit for your business
The Small Business Administration's overview of the most common business structures—how they work, how they affect taxes and liability, and what to consider before choosing the right structure for your business.
SCORE: Starting a Business Free mentorship and resources from SCORE, a nonprofit that supports small business owners. If you want a human to talk through your setup with, their free mentoring is genuinely useful.
Register Your Business by Location
These links go directly to each state's business registration office. Start here to search your business name and file your registration.
UNITED STATES
Alabama – https://www.sos.alabama.gov/business-entities
Alaska – https://www.commerce.alaska.gov/web/cbpl/BusinessLicensing.aspx
Arizona – https://azcc.gov/corporations/filings
Arkansas – https://www.sos.arkansas.gov/business-commercial-services
California – https://bizfileonline.sos.ca.gov
Colorado – https://www.sos.state.co.us/biz
Connecticut – https://portal.ct.gov/SOTS/Business-Services
Delaware – https://corp.delaware.gov
Florida – https://dos.fl.gov/sunbiz
Georgia – https://sos.ga.gov/corporations
Hawaii – https://cca.hawaii.gov/breg
Idaho – https://sos.idaho.gov/business-services
Illinois – https://www.ilsos.gov/businessservices
Indiana – https://inbiz.in.gov
Iowa – https://sos.iowa.gov/business
Kansas – https://www.sos.ks.gov/businesses
Kentucky – https://www.sos.ky.gov/bus/BusinessFilings
Louisiana – https://www.sos.la.gov/BusinessServices
Maine – https://www.maine.gov/sos/cec/corp
Maryland – https://dat.maryland.gov/businesses
Massachusetts – https://corp.sec.state.ma.us
Michigan – https://www.michigan.gov/lara/bureau-list/bcs
Minnesota – https://www.sos.state.mn.us/business-liens
Mississippi – https://www.sos.ms.gov/businessservices
Missouri – https://www.sos.mo.gov/business
Montana – https://sosmt.gov/business
Nebraska – https://sos.nebraska.gov/business-services
Nevada – https://esos.nv.gov
New Hampshire – https://www.sos.nh.gov/corporation-division
New Jersey – https://www.njportal.com/DOR/BusinessRegistration
New Mexico – https://www.sos.nm.gov/business-services
New York – https://www.dos.ny.gov/corps
North Carolina – https://www.sosnc.gov/divisions/business_registration
North Dakota – https://firststop.nd.gov
Ohio – https://www.ohiosos.gov/businesses
Oklahoma – https://www.sos.ok.gov/business
Oregon – https://sos.oregon.gov/business
Pennsylvania – https://www.dos.pa.gov/BusinessCharities
Rhode Island – https://www.sos.ri.gov/divisions/business-services
South Carolina – https://businessfilings.sc.gov
South Dakota – https://sdsos.gov/business-services
Tennessee – https://sos.tn.gov/products/business-services
Texas – https://www.sos.texas.gov/corp
Utah – https://corporations.utah.gov
Vermont – https://www.sec.state.vt.us/corporations
Virginia – https://www.scc.virginia.gov/pages/Business-Main
Washington – https://www.sos.wa.gov/corps
West Virginia – https://business4.wv.gov
Wisconsin – https://www.wdfi.org/corporations
Wyoming – https://www.wyo.gov/business/starting-a-business
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Not legal advice. Registration requirements vary by state, province, and product type. When in doubt, a quick consultation with a small business attorney or your local SCORE chapter can save you a lot of headaches down the road.