Opening an LLC in the United States takes between one day and three weeks, costs between $50 and $500 in state fees depending on the state, and doesn't require citizenship or residency: you can form it with a passport and, for taxes, with an ITIN if you don't have a Social Security number. What it does require is following the correct procedures. This guide walks you through the 8 steps, provides the 2026 cost table for the 13 states with the largest Hispanic populations, and explains what most formation services don't tell you: what happens after you open your LLC.
Quick answer: How to open an LLC in the United States
- Choose the state where do you really operate (not the "cheapest").
- Verify that the name is available and ends in "LLC".
- Appoint a registered agent with a physical address in that state.
- presents the Articles of Organization before the Secretary of State and pay the fee.
- Sign a Operating Agreementeven if you are the sole owner.
- Get your EIN for free at IRS.gov (after the state approves the LLC).
- Open the business bank account and set aside the money.
- Process local licenses and note the annual report on the calendar.
This guide is for educational purposes only and is not a substitute for legal or tax advice. The rules depend on your state, your place of residence, and your business activity.
What is an LLC and what does it solve (and what doesn't)?
A Limited Liability Company (LLC ) is a legal structure that separates your personal assets—house, car, savings—from business debts and claims. It has fewer formalities than a corporation, and its profits are passed through your personal tax return . This is why it's the structure most Hispanic entrepreneurs choose when they start signing contracts, renting space, hiring help, or receiving payments from clients who request a W-9.
What an LLC doesn't do: It doesn't make you invincible, it doesn't lower your taxes on its own, and it doesn't replace insurance or a contract. If you mix personal and business money or fail to file an annual report, you lose much of the protection. If you're still unsure what you'll sell, validate the idea first: forming an entity creates obligations and maintenance costs. Our 12-step legal checklist for starting a business in the USA helps you determine where you stand.
The 8 steps to opening an LLC, explained
| Step | What are you doing | Typical cost and time |
|---|---|---|
| 1. Choose state | Register your LLC where you have a physical presence, customers, or employees. If you live and work in Florida and open it in Wyoming, you'll still need to register it in Florida. foreign LLC and pay for two maintenance services. | $0 · decision |
| 2. Name | Look it up in the Secretary of State's registry; it should include "LLC" and not be confused with another company. Also check the website domain and social media accounts. | $0 – $25 (optional reservation) · minutes |
| 3. Registered Agent | A person or company with a physical address in the state that receives official notices and summonses. This could be you if you live there; otherwise, you hire a service. | $0 – $150 per year what is a registered agent |
| 4. Articles of Organization | The creation form. It is submitted online to the state with the fee (table below). | $50 – $500 · 1 day to 3 weeks |
| 5. Operating Agreement | The internal regulations: who owns what, how profits are distributed, what happens if a partner leaves. Almost no state requires them, but banks do, and they protect the legal separation. | $0 (template) – $300 (lawyer) |
| 6. ONE | The company's tax identification number. You can request it at IRS.gov in 10 minutes. park for freeOnce the state approves the LLC. With an ITIN, you can also do it online. | $0 · immediate · How to obtain the EIN |
| 7. Bank account | With Articles, EIN, Operating Agreement, and your ID. Separating finances is what keeps the LLC protected. | $0 – $15 per month Open a business account with an ITIN |
| 8. Licensing and Compliance | Business license from your city or county, industry permits, registration of sales tax If you sell products, and the annual state report. | $50 – $400 per year depending on the state |
How much does it cost to open an LLC by state (2026)
State fees for Articles of Organization and annual maintenance costs apply in states with larger Hispanic populations. Check the current amount on the Secretary of State's website before filing; these fees change without notice.
| Status | Registration fee | Annual maintenance | Nota |
|---|---|---|---|
| Texas | $300 | $0 (franchise tax report, no payment under ~$2.47M income) | No state personal income tax |
| Florida St | $125 | $138.75 annual report (before May 1st) | $400 fine for late arrival |
| California | $70 | $800 franchise tax + $20 Statement of Information | The most expensive state to maintain |
| New York | $200 | $9 every 2 years | It requires publishing notices in two newspapers (from $300 to over $1,000 depending on the county) |
| Georgia | $100 | $50 | Annual registration between January and April |
| Tennessee | $300 (that's $50 per member, minimum $300) | $300 minimum + franchise/excise tax | View LLC in Nashville |
| North Carolina | $125 | $200 | Annual report before April 15 |
| Illinois | $150 | $75 | Approval in 1–2 weeks online |
| New Jersey | $125 | $75 | Separate tax registration (NJ-REG) |
| Nevada | $425 | $350 | Includes state license and membership list |
| Washington | $200 | $70 | No income tax; B&O tax applies to gross sales |
| Arizona | $50 | $0 | No annual report for LLCs; some counties request publication |
| Colorado | $50 | $25 | Everything online and fast |
A realistic budget for legal startup, including a registered agent, local license, and basic insurance, is between $500 and $1,500 for the first year. If a service charges you $1,000 "just to open the LLC" in a state where the fee is $125, you're paying for the paperwork, not for advice.
Open an LLC with an ITIN, without a Social Security number, or without being a resident.
The state doesn't ask about your immigration status when registering an LLC. You can be the sole owner using your passport as identification. What changes are the tax and banking aspects.
- Con ITIN: You apply for an EIN online using your ITIN and report the LLC's earnings on your Form 1040 with Schedule C (if you're the sole owner). This builds your tax history, which is the document most often requested by banks and lenders. If you don't have the number yet, here it is. How to get your ITIN in 2026.
- Without ITIN or SSN (if resident): The EIN is requested by fax or mail using form SS-4 (it takes weeks). A single-owner LLC with no U.S. presence has its own rules: form 5472, withholding taxes, and tax treaties. In this case, it's advisable to have an accountant who works with nonresidents. Details at LLC for non-residents y Advantages of an LLC for foreigners.
- Bank: Several large banks and many credit unions open business accounts using a passport, ITIN, and LLC documents. Nonresidents who haven't visited the U.S. often use digital banks that accept foreign LLCs.
LLC taxes: the basics you should know before opening one
By default, an LLC doesn't pay federal income tax on its own. If you're the sole owner, profits go on your personal tax return, and you pay self-employment tax (15.3%) plus income tax. If there are multiple partners, the LLC files Form 1065, and each partner receives a K-1. When net income exceeds $60,000–$80,000 annually, many owners choose to tax their LLC as an S-Corp to save on self-employment tax . We compare this in our LLC vs. S-Corp article and discuss how much an LLC pays in taxes . If you're unsure whether to choose an LLC or a corporation, read our LLC vs. Corporation article.
Regarding the FinCEN Beneficial Ownership Report (BOI): as of 2025, companies incorporated in the United States are exempt; only certain foreign entities registered in the U.S. are required to file. Beware of letters and emails charging you to "file your BOI": these are scams. More on BOI exemption.
The most costly mistakes when opening an LLC
- Pay for the EIN. It's free at IRS.gov. Any site that charges a "processing fee" is a middleman.
- Register in Delaware or Wyoming "because it's cheaper" When you operate in another state: you end up paying for two registrations, two agents, and two annual reports.
- Apply for the EIN before the state approves the LLC. The IRS may assign it to an entity that does not yet exist, and then it has to be corrected.
- Bypassing the Operating Agreement "Because we're family." It's precisely among family members where we see the most conflicts when the business starts to profit.
- Mix the money. Paying for groceries with the business card or receiving customers on your personal Zelle account breaks the legal separation.
- Forget the annual report. Fines and, eventually, administrative dissolution. If this has already happened to you, here's what you need to know. How to reinstate a dissolved LLC.
- Believing that LLC replaces insurance. A lawsuit arising from an accident in your cleaning or construction business may exceed what the LLC protects.
After opening the LLC: the documents and dates you can't miss
Keep the following in a digital folder, with subfolders for each topic: approved Articles of Organization, the EIN confirmation letter (CP 575), the signed Operating Agreement, the registered agent's information, state receipts, licenses, contracts, insurance policies, and bank statements. Banks, accountants, payment platforms, and large clients will request these documents, and searching for them at the last minute takes hours.
And schedule four dates: the annual state report, estimated tax payments (April, June, September, and January), local license renewal, and insurance review. Opening the LLC takes an afternoon; keeping it in good standing is the real work.
Frequently Asked Questions about Opening an LLC
How much does it cost to open an LLC in the United States?
The state fee ranges from $50 (Arizona, Colorado) to $425 (Nevada); in Texas and Tennessee it is $300, in Florida $125. With a registered agent, local license and insurance, the first year costs between $500 and $1,500.
How long it takes?
Online processing takes 1 to 3 business days in Texas, Florida, Georgia, and Colorado; up to 2–3 weeks in New York, Pennsylvania, and some states that review manually. Paying for "express processing" is only worthwhile if you have a pending contract.
Can I open an LLC without a Social Security number?
Yes. The state doesn't require it. For your EIN and taxes, you use your ITIN; if you don't have either, you apply for an EIN using form SS-4 by fax.
Which is the best state to open an LLC?
The state where you operate. The "best states" in the ads (Delaware, Wyoming, Nevada) are suitable for holding companies, investors, or 100% online businesses with no physical presence; for a service, food, or construction business in your city, they only add cost.
Do I need a lawyer to open an LLC?
It's not for the process itself: it's an online form. However, advice is recommended if you have partners, investors, a foreign partner, or significant assets to protect.
Does a one-person LLC pay less tax?
Not on its own. It pays the same as a self-employed worker until it chooses to be taxed as an S-Corp, which is only advantageous above a certain profit and with a formal payroll.
Official sources
- SBA — Register your business
- IRS — Get an Employer Identification Number
- IRS — Limited Liability Company (LLC)
- FinCEN — Beneficial Ownership Information
Would you prefer we do it for you? In Tennessee and any other state, we'll register your LLC with an EIN and provide you with a ready-made compliance schedule. Request a quote.
