Business Structures and Registration

Business structures and registration cover the legal forms a business can take and the steps that make it official. Common forms include sole proprietorships, partnerships, limited liability companies, and corporations, each with different rules on ownership, liability, and taxes. States handle most registration and licensing, and the Internal Revenue Service issues the federal identification number most businesses need.

People usually bring questions about which structure fits a particular business, how to register with a state, and how to get an employer identification number. They also ask how each structure is taxed, what personal liability an owner carries, and what local permits or licenses apply.