So you’ve got a great idea and you’ve decided you want to start a business. What do you do next? Well, after you’ve chosen the type of business entity that you’re going to use [link to business entity post], you’ll need to register your business.
What does that mean? Well, the IRS doesn’t require you to register your business with them, but you will have to procure a Federal Employer Identification Number (FEIN), also referred to as a Tax Identification Number (TIN) in order to pay employees and more.
Depending on the type of business you’re starting, you may also have to get a business license from your state to operate legally. Check your state business services website to understand more.
You’ll also have to register the name of your business. You can do this two ways. First, you can register a business entity like an LLC or C Corp. The name you use for the business entity will be automatically reported to the state. Alternatively, you can register a DBA (probably with your state’s Secretary of State).
After the initial registration, there are often notice requirements that you need to meet, and other filings that you must submit.
Due to all of these steps, we recommend that you consider using a comprehensive service to register your business. This will ensure that you meet the relevant regulatory requirements and allow you to focus on what matters most: building your business.
Below, we’ll discuss the pros and cons of four tools that you can use to register (and in some cases, manage) your business.
Stripe, the popular payment processing company, has a service called Stripe Atlas that helps you incorporate your company, get your EIN, issue founder equity, and more. The process is quite simple and Stripe claims that more than 50,000 businesses have used their product to incorporate.
Other benefits to using Stripe Atlas include: generating and filing legal documents, access to discounts from vendors like Ramp, Hubspot, and OpenAI, and one year of free card processing with Stripe.
Stripe Atlas costs $500 and includes state filing fees. Ongoing maintenance of your registered agent through Stripe will set you back $100 per year.
Overall: Stripe Atlas is a vetted, popular solution with lots of perks best for founders that wish to incorporate in Delaware, and particularly those who intend to raise venture capital.
Doola offers several services, including company formation, bookkeeping, taxes, and more. It offers options to start an LLC, C Corp, or even a DAO LLC (it’s a crypto thing).
Doola offers two packages: an annual Starter package that costs $297 per year (but does not include state filing fees), and a Total Compliance package that costs $1,999 per year with a higher service level, expedited processing, IRS tax filings, and more.
Overall: while less well-known than Stripe, Doola seems to offer many of the same basic services along with access to some services that Stripe does not offer themselves.
ZenBusiness is a formation service focused on LLCs. Their big differentiator is that simple formation is free (yes, you read that right), except for state filing fees.
Where their service will start to cost you money is when you add on additional products on top of the simple filing. An operating agreement is a one-time cost of $125, while their Registered Agent Service commands an annual fee of $199.
Overall: If you’re starting an LLC and you’re cost conscious, or want to have more control over the products that you use, ZenBusiness could be a good option.
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