Creating a business entity comes down to five steps: 1. Name your business (and making sure the name isn’t already taken) 2. Pick an entity or legal structure 3. Choose a primary business location 4. Register with the proper government agencies (usually state and local, and often through a registered agent) 5. Set up tax and banking details There may be other steps or fees associated with creating a legal business entity depending on your business location and industry, so a business formation service can help you make sure all the bases are covered.