Should You Form Your Business Before You Register a Domain Name?

Posted September 27, 2024 • 4 Minute Read

Starting a business includes many tasks, and the first often focuses on creating an identity. You’ll need to decide whether to register your business legally or secure a domain name first. Registering gives you official status, while a domain establishes your online presence.

Registering a business entity first

Deciding whether your online presence should take priority over legal registration can be tough. Sometimes, the best way to decide is to step into someone else’s shoes.

Let’s meet Charlie. Charlie has been a coffee lover for a long time. After learning the science behind a great cup of joe, Charlie was ready to turn his passion into a business. With a solid business plan in mind, Charlie registered his company with his Secretary of State and began making a name for himself in his community by serving quality brewed coffee.

Experiencing some success, Charlie noted frequent requests for an online menu, and the option to place online orders. Realizing the need to develop a digital identity, Charlie searched online for a domain to match his company name, and registered it. His focus on creating a welcoming atmosphere paid off, laying the groundwork for his future business website and confirming a demand for it.

Already decided which option works for you? Northwest can help you register a business, serve as your registered agent, and even secure a domain name for your business. Take the first step in your journey today, Northwest is happy to point you towards the path you’re looking for!

Why register a business before a domain

In Charlie’s case, registering his business first made sense because his coffee shop thrived on in-person interactions and community relationships. In your case, registering your business with the state before concerning yourself with a domain name and online presence might make sense if:

  • You’ll need a brick and mortar location
  • You’ll be dealing in fields that require certifications or licenses to operate
  • Your business deals in high risk fields where liability protection is a must
  • You’ll need to hire employees

In situations like Charlie’s, a website isn’t essential at first. Starting with a business registration can allow you to perfect your products before building an online presence.

Registering a domain name first

Registering a domain name is a much simpler task than registering a company with state authorities, and can be a great first step if there’s a powerful and memorable brand in mind.

Introducing: Aaliyah. Inspired to create a YouTube channel devoted to her love for spooky bedtime stories, she moved fast to check the availability of a domain name that matched her brand. As luck would have it, sleepsandcreeps.com was available to register. Within a few minutes, Aaliyah had secured her online identity.

Fast forward a year, and Aaliyah’s channel had experienced explosive growth, attracting numerous sponsorship offers. With thousands of followers and the potential for some serious income, Aaliyah decided it was time to get official. Filing formation documents with her state of residence, Aaliyah started her LLC and added an additional layer of legitimacy and liability protection to her brand.

Why register a domain before a business

For Aaliyah’s YouTube channel, an online presence was the heart of her project. Securing her domain name ensured her brand was protected online before establishing a legal entity. You might also consider starting with your domain registration if:

  • Building a community for your brand means connecting with people online
  • You have a unique brand identity in mind you want to protect immediately
  • You want to validate your idea online with minimal upfront investment
  • You’ll deal primarily in digital products or entertainment, without much physical interaction

While Aaliyah and Charlie had different starting points for their business and brand, they both had something in common: they knew the importance of an online presence in growing their business.

Choosing Domain or Legal Registration

When deciding which form your brand’s identity should take first, consider the nature of your activities. Registering your domain secures your online identity and starts building your brand immediately. Registering a legal entity offers liability protection and legitimizes your business. Whichever first step you settle on, just know that neither is the wrong choice, and both will help you grow a strong business in the long run.