Business Licensing & Registration

Before you take your first job, you need to be set up correctly. That means choosing a legal structure, registering your business name, getting an EIN, and making sure you have the licenses your state and trade require. None of it takes long — but the order matters, and the decisions you make here affect your taxes, your liability, and how your business operates for as long as you run it.

Legal Structure

The first step in the business registration process is choosing a business structure. Your structure affects how you operate, what happens to your personal assets if something goes wrong, and how you pay taxes. There are a few options, but for most service businesses, an LLC is the right starting point.

Limited Liability Company (LLC)

A limited liability company separates your personal assets from your business. Your personal property is protected from lawsuits, creditors, property damage claims, and other business liabilities. LLCs also give you flexibility on taxes.

By default, an LLC uses pass-through taxation — revenue flows to your personal tax return and you pay self-employment tax on it. As your business grows and brings in more profit, you can elect S-Corp tax treatment. That means you pay yourself a reasonable salary (subject to payroll taxes), and take the remaining profit as distributions that aren't subject to self-employment tax — which can lower your overall tax bill. Use the calculator to see whether the savings make sense for your situation.

C-Corp

A C-Corp makes your business a completely separate legal entity from its owners and shareholders. It offers the strongest liability protection and lower audit risk. Banks and suppliers tend to like working with C-Corps. The downside: double taxation. The corporation pays taxes on its profits, and then you pay taxes again on your salary or dividends.

Subchapter S Corporation

Same liability structure as a C-Corp, but shareholders are taxed directly on the business's profit and loss rather than at the corporate level — so no double taxation. An S-Corp can be a good fit for a business owner who wants corporate liability protection without the double tax hit.

Sole Proprietorship

The default if you don't register anything. Your personal and business assets are treated as one. If your business gets sued, everything is on the table. Offers no legal separation between you and the business — and no protection of personal assets from your business activities.

Partnership

For two or more co-owners. You can set up a limited liability partnership or a limited partnership (LP) where one general partner carries liability exposure while limited partners are protected. If you go this route, be specific in writing about who owns what and who controls what. These legal documents matter later.

Establishing an LLC

Registration requirements and fees vary by state — typically $40 to $500, with most states falling in the $50–$100 range. You can find your state's specific process and registration fees here.

Most states also require you to designate a registered agent — a person or company authorized to receive legal documents and official correspondence on behalf of your business. This can be yourself, another person, or a registered agent service. Your registered agent must have a physical address in the state where you're registering (a P.O. box typically won't work).

When you file, you'll typically complete a form, provide information about the business entity and its owners, submit payment, and receive a confirmation page once your domestic LLC is approved.

Talking to a lawyer before filing is worth it to make sure your structure is set up correctly — it's not required, but it protects you from mistakes that are harder to unwind later.

Decide on an Address for Business Documents

You'll need to choose a business address to use for official correspondence, bank accounts, and tax filings. A mailing address works for most purposes — this doesn't mean you need a physical office. It's just the address on record for your business with your state and the federal government.

How to Register a Business

Once you've chosen a structure and address, you'll register your business name. For LLCs and corporations, this is part of the standard registration process. If you're operating as a sole proprietor or partnership under a legal name that isn't your own, you'll need to file a DBA ("doing business as").

You can complete most of this process to register your business online through your state's secretary of state website. Some states also allow you to mail in your registration documents, though online is typically faster and easier to track.

DBAs

A DBA lets existing LLCs and corporations register and operate additional businesses under different names. For example, if you own a plumbing company in Texas and want to open a second business under a different name, you'd file a DBA. Both businesses remain one legal entity but operate under separate names.

Note: a DBA does not protect your business name from being used elsewhere. If you want name protection, trademark it separately.

EIN

Next, register with the federal government to get an Employer Identification Number (EIN). Your EIN works like a Social Security number for your business — you'll need it to file taxes, open a business bank account, and hire employees. When you apply, you'll be asked to identify a principal officer responsible for the entity. You can apply for free directly on the IRS website.

Once you have your EIN, make sure you've applied for all required licenses and permits. The SBA's licenses and permits page is a good starting point for determining what applies to your business location and industry.

Trade Licensing

Most businesses need a combination of licenses and permits from both federal and state agencies. Registration requirements and additional fees vary based on your trade, business location, and local government rules. Always confirm with your local licensing authority — requirements aren't consistent across states, and sometimes even across counties. Contact your city or county department directly if you're unsure what applies to your business activities.

In most cases, you'll fill out an application, provide information about your services, and pay a fee. Some states require exams or additional documentation depending on the trade.

Licensing Guides

Plumbing License Requirements By State

HVAC License Requirements By State

Electrical License Requirements By State

For all other trades

Business License

Most businesses need a general business license to operate at their business location. Requirements and fees vary — in many cases it's free or low-cost, but check with your local city or county.

The registration process is mostly paperwork — but what it sets up matters. Your structure determines what's at risk if something goes wrong. Your EIN unlocks banking, hiring, and taxes. Your licenses are what let you work legally and get paid. None of it is complicated, but skipping steps or getting them wrong creates problems that are expensive to unwind.

Get it done once, get it done right, and then focus on the business. FieldPulse's customer management tools are there when you're ready to start managing jobs, customers, and payments in one place.