Sole Proprietor, LLC, or S Corp? Here’s How to Make Your Choice
Whether you’re just starting your solo business or looking to improve your operations (and save some money), at some point you’re going to need to...
9 min read
Lettuce
:
Sep 26, 2025
Key Takeaways:
We get it. Figuring out how to register a business name feels like another tedious task on your endless to-do list. Many solopreneurs stick with their personal names, thinking business registration is just unnecessary paperwork. Here's the surprising truth: while you're avoiding registration, you're trapped in a tax structure that forces you to pay 15.3% self-employment tax on every dollar you earn.
Business name registration turns your solo venture into a legitimate business entity that qualifies for deductions, credits, and financial tools that personal tax returns simply can't access. Registration isn't just paperwork; it's your first step toward keeping more of what you earn.
You don't need a law degree or expensive consultants to learn how to register your business name properly and start claiming these opportunities. The process is straightforward when you know the right steps. While traditional methods take weeks of back-and-forth with state offices, Lettuce’s platform can handle the entire process for you in mere minutes – starting from name selection all the way to filing. And once your business name is registered, Lettuce's automated solutions can unlock the tax strategies that maximize your new business entity.
It's time to stop leaving money on the table and start building your business the Lettuce way.
Your registered competitors aren't just building credibility. They're building toward LLC formation and S Corp election, a combo that can save you thousands annually if you're earning over $60,000. Every day you operate without registration, you're missing out on business banking, liability protection, and the foundation for serious tax optimization.
Here are the key advantages you unlock the moment you register:
With Lettuce, this entire progression from registration to full business formation happens automatically, so you're never stuck figuring out the next step.
The question "how do I register a business name" has a surprisingly simple answer: three straightforward steps that take the guesswork out of the process. Whether you're in California or Kansas, the fundamentals remain the same.
Here's your action plan.
Smart solopreneurs verify name availability before moving forward with registration. This verification process ensures your chosen name can legally represent your business across all platforms where you'll build your presence.
Pro Tip: Most states let you reserve your chosen name for a small fee while you complete registration paperwork. Use this safety net to secure your preferred name without rushing through the process. Lettuce eliminates this step entirely, automatically checking availability across multiple name options and securing the best available choice instantly.
What steps you’ll need to take to register your business name depend entirely on which business structure you choose. But this isn't just a paperwork decision. Your structure determines everything from filing location to liability protection to how much you'll pay in taxes each year.
Each option offers different registration requirements, liability protection, and tax savings opportunities. For instance, S Corp status can save you thousands in self-employment taxes, provided you qualify and can afford to pay yourself a reasonable salary. The key is to match your current income level and growth plans to the right structure from the start.
Here's the myth most solopreneurs believe: you have to choose between LLC or S Corp. The truth? They're a combo move, not competitors. An LLC is your legal structure (liability protection). An S Corp is a tax election you apply to your LLC (tax savings). Once you're earning $60,000+, this combo helps you keep more of what you earn and shield your assets.
The real insight: It's not "either/or". It's "LLC first, then S Corp." And Lettuce handles the entire combo: LLC formation, S Corp election, payroll, taxes, and compliance.
Your income level determines which business structure makes financial sense. A freelance writer earning $32,000 may stick with a DBA, since S Corp tax savings usually wouldn’t justify the added complexity at that level, although some may still form an LLC for liability protection. But a marketing consultant who grew from $45,000 to $75,000 over two years might have started with that same simple DBA filing, until they crossed roughly $60,000 in net earnings. At that point, an LLC with an S Corp election often makes sense, potentially saving several thousand dollars annually in self-employment taxes, depending on salary vs. distributions.
The key is matching your structure to your earnings. Too simple and you overpay taxes, too complex and you waste money on unnecessary overhead.
Annual Income | Business Type | Recommended Structure | Key Benefits | Annual Tax Savings |
---|---|---|---|---|
$20K - $40K | Freelance Writer, Graphic Designer | DBA Filing | Name protection (county/local level), business banking | $0 - $500 |
$40K - $60K | Marketing Consultant, Web Developer | LLC | Personal asset protection, credibility, banking | $500 - $2,000 |
$60K - $100K | Software Developer, Business Consultant |
LLC + S Corp Election | Personal asset protection + tax optimization | $3,000 - $10,000 |
$100K+ | Established Consultant, Agency Owner | LLC + S Corp Election | Personal asset protection + significant tax savings | $10,000+ |
Lettuce automatically recommends the right structure based on your income and handles the entire setup process.
Once you've selected your business structure, filing is straightforward. Here's exactly what you need to do:
Pro Tip: File online whenever possible. It's faster than paper submissions and gives you instant digital copies of all documents. Lettuce automates this entire process, filing online within minutes and organizing all your documents in a secure dashboard you can access anytime.
Smart preparation makes your business name filing smooth and sets you up for long-term success. Here’s your checklist for avoiding common pitfalls:
You just learned how to register a business name the traditional way. But why do it yourself when Lettuce can handle everything automatically?
Lettuce handles the entire business name selection and registration process. You provide multiple name choices during signup (Lettuce even walks you through that), Lettuce checks availability with your state, and automatically files the chosen available name with your state's Secretary of State office.
Traditional Process: Research names → Check availability manually → Fill out state forms → Mail or submit online → Wait 2-3 weeks → Hope for approval
Lettuce Process: Choose names → Automated availability check → Instant filing → Done in 10 minutes
But registration is just the beginning. Lettuce becomes your complete business operating system that handles everything as you grow.
Complete Business Stack: LLC formation → S Corp election → Automated payroll setup → Tax optimization dashboard → Ongoing compliance → All handled automatically
Here's what this really means for solopreneurs: you don't have to figure out everything alone anymore. No more researching state requirements, worrying about filing deadlines, or wondering if you chose the right structure. The stress of managing business formation while trying to serve clients disappears. Lettuce handles the complexity so you can focus on what actually grows your income.
Still have questions about the registration process? Here are the answers to what solopreneurs ask us most often.
You'll follow three main steps: verify if your name is available, choose your business structure (sole proprietorship, LLC, S Corp, etc.), and file paperwork with the appropriate office. The process takes 1-3 weeks, but the extra tax benefits start immediately once you're approved.
Skip the paperwork and let Lettuce handle the entire process for you (no headaches required). The platform automatically takes care of LLC registration, EIN applications, S Corp elections, and even opens your business bank account. Lettuce removes all the barriers (in record time) so you can enjoy the advantages without lifting a finger.
Without registration, you're stuck as a sole proprietor paying 15.3% self-employment tax on every dollar. With the right progression, you keep more of what you earn while building a legitimate business structure. Lettuce automates this entire progression, including registration, LLC formation, S Corp election, and ongoing tax optimization, turning your business name into serious money-saving infrastructure without any of the complexity.
Start with your state's business registry, then check your local DBA registrations. Next, run a USPTO trademark search and check for domain availability. A quick Google search helps ensure you're building a unique brand identity that won't conflict with existing businesses.
It depends on your business structure. LLCs and corporations file with your state's Secretary of State office. Sole proprietors using a DBA (doing business as) name typically file with their county clerk's office. Most states now offer online filing systems that process much faster than paper applications.
Filing fees typically range from approximately $25-$300, depending on your state and business structure. Depending on the state, you need to file your DBA on a state or county level. County-level DBA filings are usually on the lower end ($50-$150), while state-level LLC or corporation filings tend to cost more ($100-$300). Online filing often costs the same as paper filing but processes much faster.
You'll need your state application, EIN or Social Security Number, business address, and filing fee payment. Some states require extras like registered agent appointments or newspaper publication, but most keep it straightforward.
Yes, you can change it by filing an amendment with the same office where you registered, but it requires additional fees and affects your banking, contracts, and tax filings. Most solopreneurs find it easier to choose carefully from the start rather than deal with the complications later.
You just learned how to register a business name the traditional way. But why do it yourself when Lettuce can handle everything automatically? While other freelancers spend weeks dealing with state offices and paperwork, you could be officially registered in 10 minutes.
Lettuce doesn't just handle business name registration. We're your complete business operating system. Our automation removes the stress of managing compliance, eliminates the guesswork around tax optimization, and handles ongoing requirements that traditional DIY approaches leave you scrambling to figure out alone. As a solopreneur, you get the confidence of knowing your entire business infrastructure runs automatically while you focus on growth.
Ready to skip the bureaucracy and get straight to business? Get started with Lettuce and let our platform handle the registration while you build what actually makes you money.
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