How to Register as a Self-Employed Business

Registering a self-employed business starts with contacting your secretary of state.

Having a self-employed business provides rewards such as a flexible schedule, an income that expands with your work and the pride of building your own business. Those motivated to work for themselves can learn how to provide a product or service to clients. Registering your self-employed business to avoid potential legal problems is a quick and easy task.

Things You'll Need

• License or filing fee

Instructions

1. Log on to your secretary of state's website to request a "new-business start-up packet." This packet, which is usually available in an online form, will detail your state's specific filing requirements for various business types. (For a list of all secretary of state websites nationwide, see Resources.)

2. Read through the new-business packet to decide how you'll organize your business. For self-employed business operators, organizing your business as a "sole proprietorship" does not require a state or federal filing of any kind. Also, sole proprietorships don't have regular annual filings, requirements for officers or stockholders or other documentation requirements.

3. Register the name that you'll be doing business under if you will not be using your own name. For example, Ted Williams can do business without name registration, but Ted's Plumbing must register its name in order to use it legally for business transactions. (See Business.gov article in Resources.)

4. Contact your state's department of taxation or department of finance to get a vendor's license application or a new-business license application. Fees for vendor's licenses vary from $10 to $50, depending upon your state. Your secretary of state's website or new business packet will direct you to a link or contact information for the correct department.

5. Complete the vendor's or new-business license application and return it along with the filing fee to your state's department of taxation. The application will require your name, address, telephone number and Social Security number, along with the type of business you'll be engaged in.

6. Be sure to keep the vendor's or new-business license for your records. Operating without such a license is punishable by law.

Tips & Warnings

• Corporations, partnerships and limited liability corporations each have filing requirements that may vary from state to state. You should consider speaking with a lawyer or tax professional if you choose to organize your business in any of these forms.

References

• Nolo.com: Sole Proprietorship Basics
• Business.gov: Business Name Registration (Doing Business As)

Resources

• Coordinated Legal Technologies: Secretary of State Office Websites Nationwide
• IRS: Self-Employed Individuals Tax Center