To start a business in the U.S. in 2026, you choose a legal structure, pick a name and check that it is available, register with your state (required for an LLC or corporation), get a free EIN from the IRS, register for state taxes, and obtain any licenses your city, county or industry requires. Then you open a business bank account and buy the insurance you need. Forming an LLC costs $35 to $500 in state filing fees depending on the state, as of October 2026, and U.S.-formed companies no longer file beneficial ownership reports with FinCEN.
This guide covers the national steps. Each state guide linked below lists that state’s filing office, fees and tax registrations.
Updated October 2026.
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Best LLC Formation Services of 2026
If you’d rather have a service file for you, these are the LLC formation services we recommend in 2026, ranked. Prices are as published in October 2026.
| Rank | Provider | Best for | Price (first year / renewal) | Registered agent included? | Annual report filing? | What’s included |
|---|---|---|---|---|---|---|
| 1 | Mainstay Filing | An all-in-one price that doesn’t change | $199 + state fee / $199 per year | Yes, every year | Yes, prepared and filed | Formation filing, registered agent, EIN application, annual report. No add-on menu. |
| 2 | Northwest Registered Agent | Lowest upfront cost with privacy | $39 + state fee / $125 per year (registered agent) | Yes, first year; then $125/year | No; $100 + state fee per report | Formation, Northwest’s address on filings, mail scanning, annual report reminders, domain, website and phone tools. |
| 3 | Bizee (formerly Incfile) | A free or low-cost one-time package | $0, $199 or $299 one-time + state fee / registered agent $149 per year | Yes, first year; then $149/year | No; separate service (see site) | Standard adds EIN, operating agreement and faster processing; Premium adds contracts, domain and email, business phone. |
| 4 | ZenBusiness | Annual report filing bundled into the plan | $0, $199 or $299 + state fee / Pro $199, Premium $299 per year | No; add-on $199/year ($99 in year one) | Yes on Pro and Premium; Starter gets an optional free first year | Pro: EIN, operating agreement template, Worry-Free Compliance. |
| 5 | LegalZoom | Owners who want access to advisors | $0, $249 or $299 + state fees / see site | No; $249/year | No; $99 + state fee per filing, or $199/year | Managed Service: EIN, operating agreement, licenses and permits report, 30-day advisor trial. |
| 6 | Inc Authority | $0 formation if you can skip the upsells | $0 + state fees / see site | Yes, first year; renewal see site | Not listed | LLC filing, EIN, first-year registered agent, website, bank account setup help. |
See the full comparison, with details on each service: Best LLC Formation Services of 2026.
Starting a business at a glance (2026)
| Step | Who handles it | Cost (October 2026) |
|---|---|---|
| Choose a structure | You (sole proprietorship, partnership, LLC or corporation) | Free |
| Choose and check a name | State business database; county or state for a DBA | Free to search; DBA fees vary |
| Register the business | Secretary of State or equivalent (LLCs and corporations) | LLC filing fees from $35 in Montana to $500 in Massachusetts |
| Get an EIN | IRS online application | Free |
| Register for state taxes | State revenue or tax department | Usually free to register |
| Licenses and permits | Federal, state, county and city agencies | Varies by location and industry |
| Bank account and insurance | Your bank and insurer | Varies |
Step 1: Test the idea and write a short plan
Before spending money on filings, confirm that people will pay for what you plan to sell. Talk to potential customers, check what competitors charge, and estimate what it costs to deliver one sale. A one- or two-page plan that covers the offer, the customer, pricing, startup costs and how you will find buyers is enough for most small businesses.
A longer, formal business plan matters mainly if you will apply for a bank loan or pitch investors, because lenders usually ask for one. No state requires a business plan to register a company.
Step 2: Choose a business structure
The structure decides who is liable for the business’s debts, how it is taxed and whether you file anything with the state. The SBA’s comparison breaks it down this way:
| Structure | Personal liability | Federal tax default | State formation filing? |
|---|---|---|---|
| Sole proprietorship | Unlimited: you are personally liable for business debts | Reported on your personal return, plus self-employment tax | No (a DBA may be needed for a trade name) |
| General partnership | Unlimited for general partners | Pass-through to the partners’ returns | Usually no |
| LLC | Protected in most instances | Disregarded entity (one member) or partnership (two or more); can elect corporate tax | Yes, Articles of Organization |
| C corporation | Strong protection | Corporate income tax; dividends taxed again | Yes, Articles of Incorporation |
| S corporation | Protected | Pass-through after an IRS election | Formed as a corporation or LLC, then elects S status |
Most new small businesses with any real liability risk choose an LLC because it adds protection with little paperwork. Our how to start an LLC guide walks through that filing step by step. Founders who plan to raise venture capital usually form a corporation instead.
Step 3: Pick a name and check that it is available
An LLC or corporation name must be distinguishable from the other entity names on file in your state and usually needs a designator such as “LLC” or “Inc.” Words like “bank” or “insurance” are restricted in most states. Search your state’s business entity database before you file; our business name search guide links to the official tool for each state.
Sole proprietors and partnerships that use anything other than the owners’ legal names generally register a DBA (“doing business as,” also called an assumed or fictitious name). The SBA notes that a DBA may be registered with the state, county or city depending on where you are, and that a DBA alone gives no legal protection for the name.
Check the web and social side at the same time. The free namechk business name generator suggests options from your keywords, and the namechk domain and username checker shows whether the matching .com and social handles are taken. For national protection, search the USPTO’s free trademark database at tmsearch.uspto.gov and consider registering a federal trademark.
Step 4: Register the business with your state
LLCs, corporations, limited partnerships and LLPs are created by filing a formation document with the state, usually the Secretary of State. The filing names a registered agent: a person or company with a street address in the state that accepts lawsuits and official notices for the business. You can be your own agent, or use a service such as Mainstay Filing, which provides a registered agent in all 50 states. Our registered agent guide explains the rules.
State filing fees vary widely. As of October 2026, an LLC costs $35 to file in Montana and $500 in Massachusetts, and some states add a yearly tax, such as Delaware’s $400 LLC tax and California’s $800 annual LLC tax. New York LLCs must also publish a formation notice in two newspapers within 120 days.
If you form the company in one state and operate in another, the operating state usually requires a separate foreign registration, so most small businesses simply form where they do business.
Step 5: Get an EIN and sort out federal requirements
An Employer Identification Number (EIN) is the business’s federal tax ID. LLCs with employees, partnerships and corporations need one, and most banks ask for one to open an account. The IRS issues EINs free online; as of October 2026 the application runs Monday to Friday from 6 a.m. to 1 a.m. Eastern, with shorter weekend hours, and is limited to one EIN per responsible party per day.
Beneficial ownership reporting no longer applies to most new businesses. FinCEN’s final rule of August 11, 2026 permanently removed the requirement for U.S. companies and U.S. persons; only foreign entities registered to do business in a U.S. state still report.
Step 6: Register for state taxes and get licenses and permits
If you sell taxable goods or services, register with your state’s revenue department to collect sales tax before your first sale. Hiring employees adds state withholding and unemployment insurance accounts. A few states have no statewide sales tax, but local taxes or other business taxes can still apply, so check your state’s page.
Licenses come from several levels of government. The SBA lists federal license areas such as agriculture, alcohol, aviation, firearms, broadcasting and transportation. States license many trades, including construction, plumbing, dry cleaning and restaurants, and cities and counties issue general business licenses, zoning approvals and health permits.
Step 7: Open a bank account and get insured
A separate business bank account keeps business and personal money apart, which the SBA calls the main protection it offers. Banks typically ask for your EIN (or Social Security number for a sole proprietor), formation documents, ownership agreements and any business license.
Insurance depends on the business. According to the SBA, businesses with employees must carry workers’ compensation and unemployment insurance, and some states also require disability coverage. Common optional policies include general liability, professional liability, product liability and commercial property, and a business owner’s policy bundles several of them.
Step 8: Stay compliant after you open
Most states require LLCs and corporations to file an annual or biennial report and pay a fee, and missing it can lead to penalties or administrative dissolution. Keep the registered agent current, renew licenses on time, file sales and payroll tax returns on schedule, and update the state if your address or management changes.
How to start a business in your state
Choose your state for its filing office, 2026 fees, tax registrations and licensing links.
FAQs about starting a business
What are the basic steps to start a business in 2026?
Choose a structure, pick an available name, register with your state if you are forming an LLC or corporation, and get a free EIN from the IRS. Then register for state taxes, obtain the licenses and permits your location and industry require, open a business bank account and buy insurance. Sole proprietors skip the state formation filing but may need a DBA.
How much does it cost to start a business?
A sole proprietorship can start for little more than local license and DBA fees. An LLC adds a state filing fee, which ranges from $35 in Montana to $500 in Massachusetts as of October 2026, and some states charge yearly taxes, such as California’s $800 LLC tax. The EIN is free. Inventory, equipment and insurance are usually the larger costs.
Do I need an LLC to start a business?
No. You can operate as a sole proprietor or general partnership without any state formation filing. The trade-off is liability: owners of those structures are personally responsible for business debts and lawsuits. An LLC creates a separate entity that protects owners’ personal assets in most cases, which is why many small businesses form one once they take on customers or contracts.
Do I need a business license?
Most businesses need at least one. Cities and counties commonly require a general business license, states license many trades and professions, and certain activities such as alcohol, firearms, aviation and broadcasting need a federal license. Requirements depend on your location and industry, so check with your city or county, your state’s licensing agencies and the SBA’s federal license list.
Can I start a business with no money?
Some service businesses can start with almost no cash: a sole proprietorship using your own name needs no state filing, and the IRS issues EINs for free. You may still owe a local business license or DBA fee. Forming an LLC requires paying your state’s filing fee, so many owners start as sole proprietors and form an LLC once revenue comes in.
Do I need to file a beneficial ownership report for my new business?
Not if the business was formed in the United States. FinCEN issued a final rule on August 11, 2026 that permanently removed beneficial ownership reporting for U.S. companies and U.S. persons. Only foreign entities registered to do business in a U.S. state or tribal jurisdiction must still report, and FinCEN says it will delete information U.S. persons reported earlier.
Should I use a business formation service?
A formation service is optional; you can file directly with your state. Services make sense if you want someone to prepare the forms, act as your registered agent and file annual reports for you. Compare the yearly price with the time you would spend and confirm that state fees are passed through at cost rather than marked up.
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