Opening a business in the United States is faster and cheaper than most people think: a simple service business can be up and running in two to three weeks for $500 to $1,500 , not including equipment or premises. What ruins new businesses isn't the cost of the paperwork, but the order : opening the bank account before getting an EIN, applying for a business license before registering the company, and starting to sell before obtaining a sales tax permit . This checklist outlines the 12 steps in the correct order, including the cost of each, how they differ depending on whether you have an ITIN or are a non-resident, and the official sources to verify each piece of information in your state.
In this video (7 min): Operating without a license in Florida can result in fines and even business closure. Here we explain the difference between a business license and a professional license, which businesses are exempt, what counties and cities require, and what other permits depend on your activity (fire department, health department, signage, sales tax, and federal licenses).
Video transcript
Video Chapters
- 00:00 — Why do you need licenses before operating?
- 00:39 — The business license (Florida DBPR)
- 01:06 — Requirements: certificate of use and occupancy, zoning
- 01:33 — Commercial license vs. professional license
- 01:59 — When the business needs a licensed professional
- 02:25 — Occupational license: cost and process
- 02:51 — Renewal and expiration
- 03:03 — Exempt companies
- 03:29 — County and municipal requirements
- 04:06 — The location and businesses that change ownership
- 04:43 — Other permits: fire department, health, signs
- 05:21 — Sales tax (seller's permit)
- 05:33 — Federal licenses: regulated industries
- 06:23 - Summary
Before your company can begin operations, you need to obtain the necessary licenses to open a business in Florida. Here's a summary of which ones you need and where to go to apply; failing to obtain them on time can result in fines and penalties.
Requirements for obtaining a business license in Florida. The state requires certain businesses and occupations to obtain a business license before opening; additionally, it may be a requirement of the city and county where you operate, so it's important to be familiar with the licenses, permits, and registrations at each level. A business license is obtained from the Florida Department of Business and Professional Regulation (DBPR) and grants the right to operate at the chosen location. An evaluation is conducted to ensure you are authorized to operate in that area and that the premises meet the regulations for your business activity. Requirements include obtaining an Employer Identification Number (EIN), applying for a Certificate of Occupancy, and, in some cases, a zoning permit.
Business license vs. professional license. A business license is granted to a company; a professional license is granted to an occupation that involves extensive training and official qualification. Some businesses must have a licensed professional on staff to obtain a business license: for example, to open a Latin hair salon, a licensed hairdresser must be on staff. Other businesses do not need a business license but do require a licensed professional on staff. Check your business's requirements with the Department of Commerce.
Occupational license. The requirements and process depend on the type of business; in some cases, it's complex and requires going through several agencies. The cost also varies and sometimes depends on the number of clients authorized to be served. Both business and occupational licenses have expiration dates: apply for renewal on time; otherwise, you may receive a fine and, depending on the time elapsed, have to obtain a new one.
Exempt businesses. Some businesses do not require a business or professional license in Florida, but they must fulfill other responsibilities: obtaining an EIN and registering with the Department of State and the Department of Revenue.
Local requirements. Counties and municipalities may also require licenses and permits; to obtain a state license, you will likely need to obtain one from your city first. More information is available from the Florida Association of Counties, the Florida League of Cities, and the Small Business Development Center. Operating without proper permits can result in fines and even business closure.
Check the zoning regulations. Some counties prohibit certain activities, so confirm that yours is permitted before proceeding. And be aware: some businesses operate with a license, but if they change ownership, the new owner cannot operate without first investigating and contacting the relevant offices.
Other licenses. Fire department permit, for businesses that handle flammable materials or have facilities open to the public (in other cases, only periodic inspections are required). Health and safety permits, for businesses that sell food. Sign permit: each city regulates the size, location, and type. Sales tax license (vendor's permit), for those who sell taxable goods and services. Federal licenses, if you operate in an industry regulated by the federal government: drug manufacturing, alcohol and tobacco, firearms, ammunition and explosives, ground transportation and logistics, mining and drilling, aviation, commercial fishing, and wildlife.
Verify that you meet all the requirements your business needs before starting operations. If you're already operating and want to increase your visibility, you can add your business to the Hispanic Entrepreneurs directory.
Edited transcript for reading of the Hispanos Emprendedores video; the current figures are those of the article.
📌 Related guide: What is Real ID, who can get it, and what to do if you don't have a Social Security number
Quick answer: The 12 steps to opening a business in the USA
| # | Step | Typical cost | Time |
|---|---|---|---|
| 1 | Verify that there are customers willing to pay | $0 | 1–4 weeks |
| 2 | Choose the legal structure (LLC for most) | $0 | 1 day |
| 3 | Verify name, domain, and brand | $ 0 - $ 50 | 1 hour |
| 4 | Register the entity with the Secretary of State | $ 50 - $ 500 | 1 day – 3 weeks |
| 5 | Appoint a registered agent | $0 – $150/year | The same day |
| 6 | Firma el Operating Agreement | $ 0 - $ 300 | 1 day |
| 7 | Get your EIN from the IRS | $0 | 10 minutes |
| 8 | Open the business bank account | $0 – $15/month | 1 day |
| 9 | Licenses and permits (state, county, city, industry) | $15 – $500+ | 1 day – 8 weeks |
| 10 | Tax register (sales tax, withholdings) | $0 | 1 day |
| 11 | Insurance (liability, workers' compensation) | From $400/year | 1 day |
| 12 | Accounting and tax calendar | From $20/month | 1 day |
The steps are in order for a reason: each one depends on the previous one. You can't open a bank account without an EIN, and you can't get an EIN without having registered the bank. Skip one and you'll be backed into a mess.
Before the paperwork: validate and choose the structure
1. Verify that there is a market
Before spending a single dollar on paperwork, confirm that someone is actually willing to pay for it. Talk to ten real potential clients; if none of them are willing to pay, no amount of paperwork will save you. A service business (cleaning, construction, food, transportation) can be tested with two or three paid jobs before formalizing. Establishing a business entity creates obligations; make sure it reflects a real operation, not just the desire to "feel legitimate."
2. Choose the legal structure
| Structure | For whom | Protection | Tax |
|---|---|---|---|
| Sole proprietorship (on one's own account) | Testing, small income, no employees | None: if they sue you, they'll come after your house and your car. | Annex C on your 1040 + self-employment tax 15.3% |
| LLC | The vast majority of Hispanic businesses: services, food, construction, stores | Separate your assets from your business | Same as the previous default; you can choose S-Corp later |
| LLC with S-Corp election | When net profit goes from ~$60,000–$80,000 per year | The same as the LLC | Save on self-employment tax by paying yourself a reasonable salary |
| Corporation (C-Corp) | Startups with foreign investors and partners who do not want to declare their assets in the U.S. | Highest | Corporate tax 21% + dividend tax |
For more detailed selection: LLC vs Corporation and LLC vs S-Corp.
3. Check that the name is available
Look it up in the Secretary of State's database, check that the .com domain is available, and browse the USPTO's trademark database. Changing your name after printing business cards, uniforms, and vehicle wraps is extremely expensive. If the name is part of your business's value, consider registering the trademark.
The record: entity, agent, agreement, EIN and bank
4. Register the entity with the Secretary of State
This is the process that legally establishes your company: Articles of Organization (LLC) or Certificate of Formation, depending on the state. It's filed online and costs between $50 (Arizona, Colorado) and $500; in Texas and Tennessee it's $300, and in Florida $125. Register it in the state where you operate, not the "cheapest" one: if you live in Florida and open it in Wyoming, you'll still have to register it in Florida as a foreign LLC . The step-by-step instructions, with a table of costs for 13 states, are available in the article " How to Open an LLC in the United States . "
5. Name your registered agent
This is the person who receives official summonses and notices. They need a physical address in the state (not a P.O. box). You can be the agent yourself if you live there, or hire a service for $50–$150 a year. What exactly do they do: what is a registered agent?
6. Draft the Operating Agreement
Almost no state requires it, but almost all banks do. It defines who's in charge, how profits are divided, and what happens if a partner leaves. If you have partners—especially family members—it's not optional: it's the document that prevents a friendship from ending up in court.
7. Saca tu EIN
It's the company's tax identification number with the IRS and is free at irs.gov, taking only 10 minutes once the state has approved the entity. If someone is charging you for this, they're charging you for a free service. With an ITIN, you can apply online the same way; without an ITIN or SSN, you can fax form SS-4. Guide: What is an EIN and how to get one for free.
8. Open the business bank account
With your formation document, EIN, Operating Agreement, and ID. Mixing personal and business money is the fastest way to lose the legal protection you just paid for. If you don't have a Social Security number, you can open a business account with an ITIN and passport at several large banks and many credit unions: how to open a business account with an ITIN.
To operate legally: licenses, taxes, insurance, and accounting
9. Licenses and permits
There are up to four layers of licensing: state, county, city, and industry-specific. A general business license (in Tennessee, the county and city business licenses ) does not cover your trade license: food (health department permit), construction (contractor's license based on fee), beauty (cosmetology), transportation (DOT/MC), or alcohol. It costs anywhere from $15 to several hundred dollars, and approval takes anywhere from one day to eight weeks. Federal requirements, when applicable, are covered under federal licenses and permits.
10. Register for the taxes that apply to you
Sales tax permit if you sell products (and in some states, services), state business taxes (franchise, excise, B&O depending on the state), and payroll withholdings if you're hiring. Registering is usually free; failing to do so results in penalties. The three taxes every business owner should understand are franchise tax, sales tax, and income tax.
11. Get your insurance
General liability insurance is a minimum requirement (starting at $400 per year for a service business). If you have employees, workers' compensation insurance is mandatory in almost every state (in Tennessee, it's required for businesses with 5 or more employees, and for the first construction business). If you drive vehicles for the business, you need commercial auto insurance. An accident without insurance can shut down your business in a day.
12. Set up accounting from day one
Software or an accountant, but from the first month: receipts, a separate account, and a calendar of tax dates (estimated payments in April, June, September, and January; annual state report; license renewals). Businesses that go bankrupt don't always sell little: often they didn't know how much they owed.
If you have an ITIN, you don't have a Social Security number, or you're not a resident
- You can own of an LLC or corporation with a passport; the state does not ask about immigration status.
- Con ITIN You apply for an EIN online, file taxes annually, and build the credit history that banks and lenders later require. If you don't have one: How to get your ITIN.
- What the ITIN does not provide It's authorization to work as an employee. Owning a business and taking profits is different from being an employee; for your specific case, consult an immigration attorney.
- Financing: There are ITIN-enabled loans and credit cards, community-based microloans (CDFIs), and SBA programs through participating lenders. Get started with ITIN business loans y SBA loans.
How much does it cost to open a business in the United States?
Adding up all the required expenses, a simple service business can be set up for between $500 and $1,500 depending on the state: the LLC and licenses account for the majority of the costs; the EIN and bank account are free. A food truck or small restaurant, including health permits, equipment, and a deposit, starts at $30,000–$150,000. The line-by-line breakdown with three scenarios shows how much it costs to open a business in the United States.
The three steps that are most often skipped (and most expensive)
The Operating Agreement (step 6): it seems like bureaucracy until there's a disagreement between partners and nothing is in writing. Insurance (step 11): it gets postponed "until there's more cash flow," and one accident is all it takes to ruin everything. And accounting from the start (step 12): getting organized in January takes an hour a month; rebuilding an entire year's worth of records in April costs thousands and sleepless nights.
Frequently Asked Questions about Opening a Business in the United States
What is the first thing I need to do to open a business?
Confirm that there are clients. Then, choose the structure and register the entity. The procedures are quick; the slow part is finding someone to pay.
How long does it take to open a business in the USA?
It takes two to three weeks to get everything in order in most states. The longest delays are for health (food) permits and contractor licenses.
Do I need a business plan?
To start, you don't need a 40-page document: just a single sheet outlining what you sell, to whom, at what price, how much it costs to produce, and how many sales you need per month to cover expenses. You'll need a formal plan if you apply for a loan. How to do it: step-by-step business plan.
Which is the best state to open a business if you are Hispanic?
The state where you live and have clients. Texas, Florida, and Tennessee don't have a state personal income tax and have quick registration processes, but registering in a state where you don't operate only doubles costs. We have state-by-state guides at [link to guide]. Guides by state.
Can I open a business without legal residency?
You can own an LLC with an ITIN or from abroad. What may be restricted is working for yourself without work authorization; for your specific situation, consult an immigration attorney before starting.
How long does it take for a new business to become profitable?
Services: 3 to 9 months. Physical products: 12 to 24 months. Restaurants and retail spaces: 18 to 36 months. Your personal income may be zero for the first few months even if the business is generating revenue; plan accordingly.
Official sources
- SBA — 10 steps to start your business (and the SBDC centers, with free advice in Spanish)
- IRS — Get an EIN
- IRS — Business structures
- USPTO — Trademark Search
These twelve steps make all the difference between running a business and dealing with paperwork issues. If you'd rather avoid the hassle of forms and have someone else do it right the first time, we'll register your LLC, process your EIN, and get you ready to open a bank account—all explained in Spanish. Request a quote.
