Before the first invoice goes out, a home services business usually needs a structure, a name, a state registration, a tax ID, the licenses your trade and town require, and insurance. None of it is hard, but the order matters, and each state has its own office and fees. This guide walks through the steps, then links every state's official registration page. It is general information, not legal or tax advice.
- Pick a structure first: sole proprietor, LLC or corporation. It decides where and how you register.
- Most states register businesses through the Secretary of State or a business agency.
- The SBA says the total cost to register is less than $300 in most cases, but fees vary by state and structure.
- An EIN from the IRS is free. Trade licenses and local permits are separate from registration.
1. Choose a business structure
Most one-truck contractors pick a sole proprietorship or an LLC. A sole proprietor is you, doing business under your own name or a trade name. An LLC is a separate legal entity, which can protect personal assets from business debts. Corporations and S corporation tax status are other options to discuss with an accountant.
The SBA notes that if you do business as yourself using your legal name, you will not need to register anywhere, but you could miss out on personal liability protection and other benefits.
2. Pick and protect a name
Check that the name is free in your state's business search, then check the web address and social handles. If you work under a name other than your legal name, most states require you to register it as a DBA, also called a trade name, fictitious name or assumed name (SBA). Some counties and cities register DBAs too.
Stuck on a name? The free business name generator gives ideas for your trade and town, with domain ideas.
3. Register with your state
If your business is an LLC, corporation or partnership, you will probably need to register with the state where you do business. The SBA says most states require you to register with the Secretary of State's office, a Business Bureau or a Business Agency, and some states let you file online while others take paper filings.
For an LLC, the filing is usually called articles of organization. For a corporation, articles of incorporation. Your state's office lists the form, the fee and how long it takes. The table at the end of this guide links each state's official office.
4. Name a registered agent
LLCs and corporations need a registered agent, a person or service that receives official papers and legal documents for the business. The registered agent must be located in the state where you register (SBA). Many owners use their own address. Others pay a service, so legal papers are not delivered to a job site.
5. Get an EIN
An Employer Identification Number is your business's federal tax ID. You need one to hire employees, and many banks ask for one to open a business account. The SBA says it is free to apply and you should do it right after you register. The IRS lets you apply online and, if approved, issues the EIN immediately.
6. Register for state taxes and reports
Depending on your state and trade, you may need to register for sales tax, withholding and unemployment insurance once you have employees. The SBA notes that some states require initial reports or tax board registration, most often within 30 to 90 days after you register with the state.
7. Get your trade license and local permits
Registration makes the business exist. It does not make it legal to do the work. Many trades need a state license, and many cities and counties require a business license or permit. Koira's license pages cover the trade license rules by state, each fact quoted from the official board.
8. Insure the business and open a bank account
General liability insurance is the usual starting point, and many states and customers require it. Workers' compensation is usually required once you have employees. Open a separate business bank account so business money and personal money never mix, which also makes taxes much easier.
Every state's business registration office
These are the official state offices that register businesses, or the official state guide where the office blocks automated checks. Each link was checked before this page was published. Fees, forms and timelines are on each state's site.
Then set up the office side
Once the paperwork is done, the work is finding customers and getting paid. Koira builds your site from your business, answers and books jobs, sends estimates with signing and deposits, and invoices when you tap done. The free Office plan covers the site, estimates, invoices and your day. See how to start a home services business for the rest of the first year.
Questions about registering
How much does it cost to register a home services business?
It depends on the state and the structure. The SBA says the total cost to register is less than $300 in most cases.
Do I need to register if I work under my own name?
The SBA says that if you do business as yourself using your legal name, you will not need to register anywhere, though you could miss out on liability protection. Trade licenses and local permits can still apply.
Is an EIN free?
Yes. The IRS issues EINs for free, and you can apply online.
Is registering the same as getting a contractor license?
No. Registration creates the business. A trade license, where your state requires one, lets you do the work. Check the license pages for your trade and state.
