Knowing how to open an LLC is the first major legal step for most Hispanic entrepreneurs in the United States. An LLC (Limited Liability Company) protects your personal assets, lends credibility to your business with banks and clients, and offers tax flexibility. In this essential guide, we explain the entire process step by step, the state registration costs in 2026, and the most common mistakes, with links to our guides for each state. If you're still developing your business idea, start with our general guide to starting a business in the USA.
What is an LLC and why is it beneficial?
An LLC is a legal structure that separates your personal assets (house, car, savings) from the debts and claims of the business. Unlike a corporation, it has fewer formalities and its taxation is pass-through: profits are reported on your personal tax return. You don't need to be a citizen or resident to open one: you can form it with a passport and, for tax purposes, with an ITIN if you don't have a Social Security number.
How to open an LLC step by step in 2026
Step 1: Choose the state. General rule: Register your LLC where your business actually operates. Registering in Delaware or Wyoming "because it's cheaper" usually forces you to also register as a foreign LLC in your home state, paying double.
Step 2: Choose and verify the name. It must include "LLC" and be available in the Secretary of State's registry. Also verify the web domain and networks.
Step 3: Designate a registered agent. This is the person or company that receives legal documents. You can do this yourself if you have a physical address in the state, or hire a service ($100–$150/year).
Step 4: File the Articles of Organization. This is the incorporation document. It is filed online with the Secretary of State, and the state fee is paid (see table below). Approval takes from 1 day to 3 weeks, depending on the state.
Step 5: Draft the Operating Agreement. It's not always mandatory, but it defines who owns what and prevents conflicts between partners. Banks often require it.
Step 6: Get your EIN for free from the IRS. The EIN is your business's tax identification number and is free to obtain directly from IRS.gov . Never pay for it.
Step 7: Open the business bank account. With Articles of Incorporation, EIN, and Operating Agreement. Separating personal and business finances is what keeps the LLC legally protected.
Step 8: Licenses, permits, and annual report. Depending on your industry and county, you will need a business license or local permits. Almost all states also require an annual report with their own fee.
Costs to open an LLC by state (2026)
This is the initial state registration fee (Articles of Organization) in states with larger Hispanic communities. Always verify the current amount on the Secretary of State's official website before filing.
| Status | Registration fee | Nota |
|---|---|---|
| Texas | $300 | Without personal income tax; franchise tax above a certain threshold |
| Florida St | $125 | Mandatory annual report ($138.75) |
| California | $70 | You also pay $800 in annual franchise tax. |
| New York | $200 | Requires publication in newspapers (extra cost) |
| Georgia | $100 | Annual registration $50 |
| Tennessee | $300 | $50 per member (minimum $300, maximum $3,000) |
| North Carolina | $125 | Annual report $200 |
| Illinois | $150 | Annual report $75 |
| New Jersey | $125 | Annual report $75 |
| Nevada | $425 | Includes state license and membership list |
| Washington | $200 | Sin income tax; aplica B&O tax |
| Arizona | $50 | No annual report for LLC |
| Colorado | $50 | Annual report $25 (cheap online format) |
Add to the state fee: a registered agent (if you hire one), local licenses, liability insurance, and the annual report. A realistic budget for legal startup ranges from $500 to $1,500 depending on the state.
LLC with ITIN or without status: what you should know
The state doesn't ask about your immigration status when registering an LLC. To pay taxes, you'll need an EIN (for the business) and your ITIN (for personal use) if you don't have a Social Security number. With these two numbers, you can issue invoices, open bank accounts at many banks, and build a tax history. It's advisable to review the tax details with a professional like Jimenez Consulting Tax Services , a partner of our community.
Common mistakes when opening an LLC
The five most common mistakes we see in consulting are: paying third parties for an EIN (which is free); registering in a state where you don't operate; mixing personal and business funds; forgetting to file an annual report (which can result in fines and even administrative dissolution); and not having an Operating Agreement between family partners. All of these are avoidable with good information.
Conclusion
Opening an LLC in 2026 is simpler than it seems: name, registered agent, Articles of Organization, EIN, and bank account. The order matters, and so do the state details, which is why each guide in our "How to Start a Business in..." series provides this information for your state.
Would you prefer we do it for you? At FormaTuEmpresa.com, we register your LLC in any state, including EIN. And if you have any questions beforehand, schedule a consultation through our contact page.
