Forming a business in the US — for immigrant entrepreneurs

The most common business structure for immigrants in the US is the LLC (Limited Liability Company). This guide covers how to form an LLC, which state to choose, and how to connect with your ITIN and personal banking.

Keep in mind that registering the entity and being allowed to operate are two separate questions: in a home food business, for example, what decides whether the product may be sold is a state cottage food law rather than the Secretary of State, and that is covered in can you sell food made at home in the US?.

States covered in detail

  • California — Formation $70, annual $800 minimum franchise tax + $20 annual report…
  • Texas — Formation $300, annual $0 (no annual report fee) — but franchise tax fili…
  • Florida — Formation $125, annual $138.75 annual report…
  • Delaware — Formation $110, annual $400 franchise tax (flat)…
  • Wyoming — Formation $100, annual $60 minimum annual report license tax…
  • Nevada — Formation $425 (includes Initial List + Business License), annual $150 annual list + $200 business license = $350/year…

What is an LLC?

An LLC offers:

  • ✅ Personal asset protection
  • ✅ Tax flexibility — taxed as partnership or sole proprietorship by default
  • ✅ Low administrative cost
  • ✅ Business banking access
  • ✅ Allows foreign ownership — no restrictions for ITIN holders or non-residents

Need SSN for LLC? NO

You can form and operate an LLC with ITIN or even without ITIN as a non-resident. The IRS assigns the EIN (business tax number) independently of the owner’s SSN.

After you form the LLC: federal steps, ITIN owners, common errors

Post-formation requirements

  1. EIN from IRS (free, online, ~15 minutes)
  2. Business bank account — most require LLC docs + EIN
  3. State/local licenses depending on business type
  4. Periodic state report — annual, biennial, or none depending on the state (see the Key facts table on your state’s page); missing it can dissolve the LLC
  5. Quarterly estimated tax — the IRS test is the tax you expect to owe for the year, not your income per quarter: you generally must pay estimated tax if you expect to owe $1,000 or more when the return is filed, after subtracting withholding and credits. The IRS also names safe harbours that avoid the underpayment penalty — owing less than $1,000 after withholding and credits, or having paid at least 90% of the current year’s tax or 100% of the prior year’s tax, whichever is smaller — which is why someone with a W-2 job on the side often owes nothing quarterly (irs.gov/businesses/small-businesses-self-employed/estimated-taxes)

LLC for immigrants with ITIN

  • Permitted: ITIN holders can be LLC members
  • Banking: business accounts with ITIN available (BlueVine, Mercury, Lili — verify policies)
  • Tax filing: Schedule C on your 1040 with ITIN; Form 1065 for multi-member LLC

Common errors

  • Forgetting the state’s periodic report (can dissolve LLC)
  • Mixing personal and LLC finances (loses limited liability protection)
  • No Operating Agreement (even single-member)
  • Operating in another state without registering as foreign LLC

Last verified: 2026-05-24.

General procedural information for educational purposes. Not legal, tax, or immigration advice. Laws and fees change — verify with the issuing agency before taking action. For case-specific guidance, consult a licensed immigration attorney or other appropriate professional.

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