How much does it cost to start a business in the United States? It's the question that stops thousands of Hispanics in their tracks every year, and the answer will surprise you: starting legally costs much less than you think —and considerably less than what many "fixers" try to charge. In this guide, we show you the real, verified figures for 2026: how much it costs to register your LLC by state, which procedures are free, how much you'll pay for licenses and insurance, and three complete startup investment scenarios based on your type of business.
Register your LLC: between $35 and $500 depending on the state
The first real cost when opening a business in the United States is registering the legal structure. For most Hispanic entrepreneurs, the LLC (Limited Liability Company) is the most practical option: it protects your personal assets and is simple to manage.
The registration fee is a one-time payment to the state and varies greatly depending on where you register:
- Montana: $35 — the cheapest in the country
- Kentucky: $40
- Arizona and Mississippi: $50
- National average: $132
- Massachusetts: $500 — the most expensive
A tip that saves you headaches: register your business in the state where you actually operate . "Moving" to Delaware or Wyoming just to save on fees is usually more expensive, because you'll still have to register as a foreign LLC in your home state, paying twice.
If you haven't yet decided on your structure, check out our step-by-step guide to starting a business in the United States as a Hispanic.
The EIN is free: don't pay for what the IRS gives away.
The EIN (Employer Identification Number) is your business's tax identification number. You need it to open a bank account, hire employees, and file taxes.
Here's the most important warning in this entire article: the EIN is 100% free and can be obtained in minutes directly from the official IRS website . If someone is charging you $200 or $300 to "process" it, they are reselling a free form.
Don't have a Social Security number? You can still get one: entrepreneurs with an ITIN, and even those from abroad, can apply for an EIN by fax or mail using form SS-4.
Local licenses and permits: $50 to $400 on average
This is the step almost everyone forgets—and the one that leads to fines. Most states don't require a general business license: the one that matters is the one from your city or county.
Typical ranges in 2026:
- Work from home: $ 50 - $ 300
- Shop or commercial premises: $ 100 - $ 600
- Food businesses: $500 or more (health permits included)
Additionally, licenses are renewed every 1 or 2 years (typically between $25 and $300 per renewal). If your business is in the food industry, also check out our analysis of how much it costs to open a food truck in the United States.
Business insurance: from $40 per month
General liability insurance is the basic coverage that almost every business needs. In 2026, most small businesses paid between $40 and $100 per month , or between $500 and $2,000 per year, depending on the industry's risk.
It might seem like an avoidable expense, but think of it this way: a single uninsured claim can cost you more than ten years of insurance coverage. If your business employs people, workers' compensation adds between $45 and $70 per month.
How much does it cost to start a business in the United States? Three real-life scenarios
Adding up registration, EIN, licenses, insurance, and everything else needed to operate, these are the three most common scenarios among Hispanic entrepreneurs:
- Home service (~$2,000): Cleaning, consulting, design, digital services. You pay for registration, a local license, basic insurance, tools, and initial marketing. It's the most widely used entry point—here's a complete guide to it. Start a business from home in the United States.
- Online business with inventory (~$10,000): E-commerce, reselling, own products. In addition to legal costs, you also need to factor in initial inventory, platform, packaging, and advertising.
- Physical location ($50,000 or more): Restaurant, lounge, shop. Rent, renovations, equipment, and payroll multiply everything. Here, legal costs are the least of it: cash flow is the real challenge.
The most important takeaway: your budget defines your business model, not the other way around . Starting from home with $2,000 and growing with profits is a proven path for thousands of Hispanics.
How to save money when opening your business (without taking risks)
- Apply for the EIN yourself: It's free and takes 15 minutes.
- Register the LLC directly On the Secretary of State's website: third-party "packages" charge $300+ for filling out the same form.
- Don't pay a registered agent if you can be one yourself: In most states you can be your own registered agent if you have a physical address there.
- Start from home and validate your idea before signing a rental agreement.
- Compare insurance: The differences between insurers for the same coverage exceed 40%.
FAQ
Can I open a business in the United States without a Social Security number?
Yes. With an ITIN you can register an LLC, obtain an EIN, and open a business bank account at various banks. You don't need to be a citizen or resident to own an LLC.
What is the minimum total cost to get started legally?
In an economical state, with a home-based business: registration (~$50–$150) + local license (~$50–$100) + free EIN = less than $300 to exist legally. The rest of the investment depends on your line of business.
How often do LLCs need to be paid?
Registration is a one-time fee, but most states charge for an annual or biennial report (from $0 to $800 in California). Check your state's schedule to avoid penalties.
Start with the right step
You already know how much it costs to open a business in the United States: less than you were told, as long as you follow the correct procedures and don't pay for things that are free. If you'd like personalized guidance for your specific situation—state, legal structure, ITIN, banking, and taxes— schedule a consultation with our team →
