Did you know that creating an LLC in Florida could help you save a lot of money because there's no state income tax? It's true! When you set up an LLC in Florida, you can keep more of the money you earn through big tax savings.
Setting up an LLC in Florida is pretty easy. For just $125 ($100 to file and $25 to name a registered agent), you can start your business online. It's not cheap, but you get approved in about 5 business days. Plus when you form an LLC in Florida, you get great protection for your personal stuff keeping it safe from any business debts.
We know starting a business can seem daunting so we've put together this full guide. We'll take you through each part of how to set up an LLC in Florida, from picking your business name to submitting the Florida Articles of Organization and meeting yearly reporting needs. Costs range from $125 to $538 based on what services you need, and you must file annual reports between January 1 and May 1 each year (which costs $138.75). We're here to help you handle the whole process without worry.
Step 1: Pick a name for your Florida LLC
Picking the right name for your Florida LLC is a crucial first step in starting your business. Your company's name often makes the first impression on potential customers, unlike your physical location or business plan. Also, Florida has specific rules you need to follow to get your name approved when you set up an LLC in Florida.
Check if the name is available on Sunbiz
Before you get attached to a business name, make sure it's available. You can do this through the Florida Division of Corporations website, which most people know as Sunbiz. The state has a free search tool for you to check if someone else is already using the name you want.
To do a proper search:
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Go to the Sunbiz search page
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Choose "Search by Entity Name"
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Type in the name you want for your LLC (don't include words like "LLC")
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Look over the results
Keep an eye on the "Status" column when you check your search results. If it says "Active" or "INACT/UA," you can't use that name right now. But if you see "INACT" (which means closed down) or "InActive" (which means shut down), you might be able to use the name.
Get to know Florida's rules for naming
Florida has rules about naming LLCs. Your business name must have one of these words: "Limited Liability Company," "LLC," or "L.L.C.". You can shorten "Limited" to "Ltd." and "Company" to "Co.".
Besides the required words, Florida has strict guidelines to make a name stand out. Florida law states these elements don't make your business name different enough from existing ones:
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Adding a suffix (Inc., LLC, etc.)
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Using articles (a, an, the)
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Switching between "and" and "&"
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Switching between singular, plural, and possessive forms
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Inserting punctuation marks or symbols
Your LLC name shouldn't mislead people about what your business does or hint at government ties. So, steer clear of words like "Agency," "Commission," "Department," "Bureau," "Division," "Municipal," and "Board".
Check domain and trademark availability
Once you've made sure the name is free at the state level, think about your online presence. In today's digital market, it's key to look for available domain names that match or come close to your business name. Well-known domain registrars such as GoDaddy can help you see if the web address you want is up for grabs.
Just as crucial is to search for trademarks through the United States Patent and Trademark Office (USPTO). Keep in mind that when you register your LLC name with Florida, it doesn't give you trademark rights or stop others from using a similar name. A company with a comparable trademarked name might sue your business for unfair competition if you work in related industries.
To get full protection, think about registering a fictitious name (also called "doing business as" or "DBA") if you want to operate under any name other than your official LLC name. This registration costs $50 and stays valid for five years.
As a result, spending time to explore your Florida LLC name from every angle—state registry, domain availability, and trademark status—helps build a strong base for your business while steering clear of possible legal issues in the future.
Step 2: Appoint a registered agent
After securing your LLC name choosing a registered agent is the next key step to form an LLC in Florida. The registered agent serves as your company's official contact with the state, with the responsibility to receive important legal documents and official mail for your business.
Who can be a registered agent?
Florida law sets clear rules for who can act as your registered agent. Qualified candidates include:
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A person living in Florida (this could be you someone who works for you, a buddy, or a relative)
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A company that's allowed to do business in Florida (but not your own LLC)
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A professional registered agent company
The registered agent needs to have a real street address in Florida—P.O. boxes aren't allowed. Also, they need to be around during regular work hours (9 AM to 5 PM, Monday to Friday) to get legal papers. If you pick a company as your agent, one of the top people in that company has to sign to take on the responsibilities.
The reason you need a registered agent
Florida law (Section 607.0501 for corporations and Section 605.0113 for LLCs) requires every business to have a registered agent. This rule exists for several key reasons:
First, a registered agent gives the state a reliable way to send important legal and compliance documents to your business. Without this contact person, your company could miss crucial notices, which might lead to serious problems.
If you don't keep a registered agent in Florida, you might face big penalties. Your business could:
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Lose its good standing with the state
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Be dissolved
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Not be able to sue or defend against lawsuits in Florida courts
Using a registered agent service
You can act as your own registered agent if you meet state requirements. However many Florida business owners choose professional registered agent services. These services cost between $50 and $500 per year.
Professional registered agent services give you several benefits:
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Privacy protection - Your home address stays off public records. The agent's address takes its place
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Reliability - You don't have to worry about missing key documents because of trips, meetings, or other duties
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Discretion - You avoid the possible shame of getting legal papers in front of customers or workers
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Flexibility - useful if you work irregular hours or run your business in several states
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Help with following rules - Many services send you reminders about upcoming filing dates and other requirements
If you operate in multiple states registered agent services can be helpful. They can stand in for your company across different areas through one main contact.
So when you're setting up an LLC in Florida, think hard about whether being your own registered agent fits your business needs and personal situation. For lots of business owners, the small cost of a registered agent service gives them big benefits. It offers better privacy, dependability, and less worry as you go through the steps to form your Florida LLC.
Step 3: Submit your Florida Articles of Organization
After naming your Florida LLC and choosing a registered agent, you need to make your business official. To do this, you have to file the Articles of Organization. When the state's Division of Corporations approves this document, it establishes your LLC in Florida.
What information you need to include
You must provide several key details in the Florida Articles of Organization for the state to accept it:
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LLC name: Your name must have "Limited Liability Company," "LLC," or "L.L.C." It also needs to stand out from other existing businesses
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Principal place of business: This is the physical street address where your LLC's main office is located
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Mailing address: You need to include this if it's different from your principal address (You can use a P.O. Box here)
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Registered agent information: Name and Florida street address (P.O. Boxes aren't allowed)
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Registered agent signature: The agent needs to sign the form agreeing to take on their role
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Purpose: Professional LLCs must state their professional purpose (like law practice or accounting)
In short, an LLC's Articles of Organization become public record after filing so make sure all info is correct. You can also include optional details like names and addresses of LLC managers or authorized representatives.
How to file online or by mail
Filing online:
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Go to the Florida Division of Corporations website (Sunbiz)
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Read the filing instructions
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Hit "Start New Filing" and accept the terms
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Fill in the required fields with your LLC details
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Enter payment info for the filing fee
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Send in your application
Online filings get the green light within 5 business days. After processing, you'll get a confirmation and any certificates you bought through email at the address you gave when filing.
Filing by mail:
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Get the Articles of Organization form from the Florida Division of Corporations website
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Fill in all the necessary fields (use blue or black ink if writing by hand)
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Ask your registered agent to sign the form
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Get your payment ready with a check or money order made out to "Florida Department of State"
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Mail two copies of your filled-out form and payment to:New Filing Section Division of Corporations PO Box 6327 Tallahassee, FL 32314
Mailed filings get approved within 12 business days plus mailing time. The state keeps one copy and sends back the stamped approved copy to you.
How much does it cost to start an LLC in Florida?
Starting an LLC in Florida costs $125.00. This one-time fee includes:
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$100.00 to file the Articles of Organization
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$25.00 for the required registered agent designation
You can also choose these extra services:
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Certificate of Status: $5.00
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Certified Copy of Articles: $30.00 [132]
So, with all the extra services, the total could go up to $160.00 [132]. This is a one-time fee to file so you don't have any monthly costs to get your Florida LLC started.
In the first year, you'll also need to pay the annual report fee of $138.75. You have to do this between January 1 and May 1 of the year after you form your LLC. If you miss this deadline, you'll have to pay a big late fee, which bumps the cost up to $538.75.
After the state approves your Articles of Organization, you'll get a confirmation letter. This letter will include your LLC's name, document number, filing date, and effective date (if you asked for one). This letter proves that Florida has formed your LLC. With this proof, you can move forward to get an EIN, business licenses, and open a business bank account.
Step 4: Draft an operating agreement and apply for an EIN
Now that Florida has registered your LLC, you should focus on two key internal elements: drafting an operating agreement and applying for an Employer Identification Number (EIN). While you don't need to file these with the state, they're crucial for your business operations.
The importance of an operating agreement
An operating agreement acts as the internal rulebook for your LLC. It outlines the ownership structure, member roles, and operating procedures. Though Florida law doesn't require it, this document offers big advantages:
For starters, it strengthens your limited liability protection. It shows that your LLC stands as a separate legal entity from its members. This separation matters a lot for single-member LLCs to keep their liability protection intact.
The agreement also helps to avoid fights. It sets up ways to make decisions, share profits, and solve disputes. Plus, it makes your LLC look more credible to lenders, investors, and possible business partners.
Main parts to include:
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Percent of ownership and money put in
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What members can do and must do
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How profits and losses get split up
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Steps when members leave, sell their part, or die
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Who's in charge and how voting works
How to get an EIN from the IRS
An Employer Identification Number works like a social security number for your company. Getting one is easy and costs nothing:
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Go to the IRS website and find the online form
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Tell them about your business type and who's responsible
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Fill out the form when they're open (7 a.m. to 10 p.m. Eastern time)
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Get your EIN right away if they say yes
Another option is to send your application through mail or fax by filling out Form SS-4. However, this method takes much longer to process - about four weeks if you use mail.
Does a single-member LLC need an EIN?
Single-member LLCs that are "disregarded entities" don't always need an EIN if they have no workers or excise tax duties. Still most new single-member LLCs should get one.
Even when the law doesn't require it, an EIN has many benefits. You'll need one to:
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Start a business bank account
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Build business credit
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Get business licenses or permits
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Guard against identity theft
Getting an EIN right after you form your Florida LLC sets up a strong base for your business to run and grow in the future.
Step 5: Stay compliant after forming your LLC
After you form your Florida LLC, your journey just starts. To maintain compliance, you need to pay ongoing attention to several key areas. This will ensure your business operates .
Open a business bank account
Opening a separate business bank account for your LLC is essential to protect your limited liability. Mixing personal and business money can destroy this protection. To open an account, you'll need:
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Articles of Organization
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EIN confirmation letter
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LLC operating agreement
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Valid government-issued photo ID
Many Florida banks offer good business accounts, including Chase, Wells Fargo, Bank of America, PNC, and Truist Bank. Look into different options to find one that fits your specific business needs.
Get the licenses and permits you need
Florida doesn't give out a statewide general business license, unlike many other states. But your LLC might still need:
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A local "business tax receipt" from the city or county where you operate
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Specific licenses or permits for your industry, based on what your business does
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Sales tax registration if you're selling products to customers
Reach out to the Florida Department of Business & Professional Regulation to find out what you need.
Don't forget to file your annual report
Florida LLCs have to file an annual report between January 1 and May 1 every year. This report costs $138.75 and you can submit it online through the Sunbiz website.
If you don't meet the May 1 cutoff, you'll face a hefty $400 penalty pushing your total up to $538.75. Should you fail to file by the third Friday of September, the state will dissolve your LLC .
Here's a money-saving tip: if you miss the May deadline, you could let your LLC get dissolved and then bring it back to life. This would cost you $238.75 ($100 to reinstate + $138.75 for the report). Compared to the late fee, this approach saves you $300.
Get to grips with Florida's LLC tax rules
A key benefit of setting up an LLC in Florida is that there's no state income tax. But you'll still need to pay federal taxes. Single-member LLCs get taxed like sole proprietorships, while multi-member LLCs are taxed as partnerships.
If your business has to pay sales and use tax, you need to sign up with the Florida Department of Revenue. You'll also have to file a yearly Sales and Use Tax Return (Form DR-15).
Conclusion
Florida is a great place to start an LLC because it's so business-friendly. This guide has shown you the five main steps to set up your Florida LLC and .
Florida stands out as a great place to start your business because of its tax perks. Since there's no state income tax, you'll hold onto more of your earnings while your personal assets stay well-protected. Also, setting up shop is pretty simple - you just need to pay $125 in basic filing fees, and you'll get the green light in about 5 business days.
The process starts when you pick a unique name that meets Florida's rules. Then, you need to choose a registered agent to get important legal papers for your business. When you file your Articles of Organization, you set up your LLC. Making an operating agreement and getting an EIN give your business key internal structure. , to keep your business in good standing, you must follow proper banking practices, get needed licenses, and send in annual reports on time.
Keep in mind that you have to file your annual report between January 1 and May 1 each year. If you miss this deadline, you'll face big fines that can hurt your profits. So, make sure to mark your calendar and set reminders to avoid extra fees.
Setting up a business might look scary at first, but Florida makes it easy to form an LLC. If you follow the steps in this guide, you'll build a strong base for your business and get the most out of what Florida gives to business owners. Your Florida LLC journey starts with these steps, but it keeps going as you stay compliant and grow over the years.
FAQ
To start an LLC in Florida, you need to pick a unique business name, choose a registered agent, file Articles of Organization with the state, write an operating agreement, and get an EIN from the IRS. You'll also need to sign up for the right taxes and licenses based on what your business does.
To set up an LLC in Florida, you'll need to pay $125 at the very least. This covers two main expenses: $100 for filing the Articles of Organization and $25 to designate a registered agent. Keep in mind that you might end up spending more if you want extra paperwork. For instance, a Certificate of Status costs $5, while getting a Certified Copy of Articles will set you back $30.
You should think about starting an LLC when your business starts to make money or faces possible risks. Some people say you should form an LLC once you earn over $100,000. But many lawyers suggest you set one up when you first start your business. This helps to protect you and give your business a good structure from the start.
Florida offers several benefits for forming an LLC. You don't have to pay state income tax. Your personal assets get strong protection. The process to set up an LLC is simple. You can choose how to manage your business. Florida is friendly to businesses and doesn't cost much to start an LLC. These factors make it a good choice for people starting a business.
Each year, Florida LLCs must submit an annual report between January 1 and May 1, which costs $138.75. They also need to keep a registered agent, maintain a separation between business and personal finances, get the necessary licenses and permits, and stay up-to-date with their tax duties. If an LLC doesn't meet these requirements, it might face penalties or even be dissolved.