How do you register your business?

To register a business: choose your entity type (sole proprietorship, LLC, S-Corp, or C-Corp), file formation documents with your state Secretary of State, obtain a free EIN from the IRS, open a dedicated business bank account, and register for any required state and local taxes or licenses.

Step 1 — Choose your entity type

Entity choice affects taxes, liability, and financing options. The four most common structures for small businesses:

Sole proprietorship — simplest, no formation filing required, but owner is personally liable for all business debts. Lenders see this as higher personal-liability risk.
LLC (Limited Liability Company) — formed by filing Articles of Organization with the state; separates personal and business liability. Most common structure for small businesses seeking financing.
S-Corp — pass-through taxation like an LLC, but structured as a corporation with shareholders. Required for owners who want to pay themselves salary + distributions to reduce self-employment tax.
C-Corp — entity that pays its own taxes before distributing to shareholders. Standard for venture-backed startups; less common for SMBs seeking traditional bank financing.

Step 2 — File with your state Secretary of State

LLCs and corporations file Articles of Organization or Articles of Incorporation with the Secretary of State in the state where you'll operate. Filing fees typically run $50–$500 depending on state. Most states provide online filing. The SBA business guide at sba.gov/business-guide lists each state's registration portal. Once approved, you'll receive a Certificate of Formation — a document lenders and banks request when you open accounts or apply for financing.

Step 3 — Get your EIN from the IRS (free, takes 10 minutes)

An Employer Identification Number (EIN) is your business's federal tax ID. Apply free at IRS.gov — the online application takes about 10 minutes and issues the EIN immediately. You need an EIN to open a business bank account, hire employees, and apply for most business financing. Sole proprietors without employees can use their SSN, but lenders strongly prefer an EIN because it distinguishes business activity from personal.

Step 4 — Open a business bank account

A dedicated business checking account is not legally required for sole proprietors, but it is effectively required for financing. Every lender — SBA or otherwise — requests 3–6 months of business bank statements. Mixing personal and business deposits in one account makes it impossible for an underwriter to verify business revenue. Open a business account with the EIN and Certificate of Formation in hand.

Step 5 — Register for state and local taxes and licenses

Depending on your state and industry, you may need to register for a state tax ID (sales tax permit), obtain a local business license from your city or county, and secure industry-specific licenses (contractor, food service, medical, etc.). The SBA business guide provides a state-by-state resource for license and permit requirements.

Apply at ClearValue Lending

Once your business is registered and you have 6+ months of bank statements, ClearValue Lending can match you with SBA lenders, term lenders, and lines of credit based on your business financials. Apply through the ClearValue Lending portal — bring your EIN, business bank statements, and Certificate of Formation.

Sources

The IRS provides free online EIN application at irs.gov — the online application issues the EIN immediately and takes approximately 10 minutes to complete. An EIN is required to open a business bank account and file business taxes. — IRS — Apply for an EIN Online
The SBA Business Guide at sba.gov/business-guide provides step-by-step guidance on registering a business, including state-specific Secretary of State filing links, license requirements, and tax registration resources. — SBA — Business Guide
The Federal Reserve Small Business Credit Survey 2024 found that having a dedicated business bank account is a baseline expectation for bank and SBA lender underwriting, as mixed personal/business accounts make revenue verification unreliable. — Fed SBC Survey 2024
SBA 7(a) loan applications require borrowers to provide a Certificate of Formation (LLC) or Articles of Incorporation (corporation) as part of the entity-verification step in the application package. — SBA — 7(a) Loan Program

Key takeaways

Choose your entity type first — LLC is the most common structure for small businesses seeking financing because it separates personal and business liability.
File Articles of Organization or Incorporation with your state Secretary of State; fees run $50–$500 depending on state.
Get a free EIN from the IRS online in 10 minutes — required to open a business bank account and apply for financing.
Open a dedicated business checking account immediately — lenders require 3–6 months of separate business bank statements.
Register for state sales tax permits and any required industry-specific licenses through the SBA business guide's state-by-state resources.