Starting an LLC in Florida takes just a few key steps, but skipping one can cause delays or compliance issues. Setting it up correctly protects your personal assets and gets your business running smoothly. This guide breaks down everything you need to do, from choosing a name to filing paperwork and staying compliant.
How to start an LLC in Florida in 5 steps
Establishing a Limited Liability Company (LLC) in Florida is generally straightforward. The state offers a relatively quick formation timeline, with online filings typically processed within 1-2 business days.
The total cost to form an LLC in Florida is $125, which includes a $100 filing fee for the Articles of Organization and a $25 fee for registered agent designation.
To start an LLC in Florida, you need to:
- Choose a name for your LLC: Ensure your desired business name is unique and complies with Florida's naming requirements.
- Appoint a registered agent: Designate an individual or entity with a physical Florida address to receive legal documents on behalf of your LLC.
- File Articles of Organization: Submit the necessary formation documents to the Florida Division of Corporations, along with the $125 filing fee.
- Create an operating agreement: Although not legally required, drafting an operating agreement outlines the management structure and operating procedures of your LLC.
- Obtain an Employer Identification Number (EIN): Apply for an EIN through the IRS to handle tax obligations and open a business bank account.
Related: How to start a business
Choose a name for your LLC
The first step in forming an LLC in Florida is selecting a unique and compliant business name. To ensure your desired name is available, use the Florida Division of Corporations' business entity search tool.
This tool allows you to verify that your chosen name isn't already in use. For additional guidance on selecting an appropriate LLC name, refer to this resource on how to choose an LLC name.
Get your business domain name
Once you've chosen a name for your Florida LLC, securing a matching domain name helps establish your online presence. A strong domain name makes it easier for customers to find you and builds brand credibility.
To check availability, use a domain registrar like GoDaddy and find a domain name that aligns with your business. If your exact name isn’t available, consider variations with relevant keywords or different domain extensions like .net or .biz. And while you’re checking domain availability, see if it’s trademarked by another company.
Get a DBA
A DBA (Doing Business As) allows your LLC to operate under a different name than its registered legal name. This is useful if you want a more marketable brand name without changing your official LLC name. In Florida, you must register a DBA with the Division of Corporations by filing a Fictitious Name Registration.
Appoint a registered agent
A registered agent is an individual or entity designated to receive legal documents and official communications on behalf of your LLC. This role ensures your business remains compliant with state regulations and promptly addresses legal matters. In Florida, you can appoint yourself, another individual, or hire a professional service as your registered agent. However, the appointed agent must meet specific state requirements:
- Physical address: The agent must have a physical street address in Florida. P.O. Boxes are not acceptable.
- Availability: The agent must be available during regular business hours to receive legal documents in person.
- Consent: The individual or entity must consent to serve as your LLC's registered agent.
Related: What does a registered agent do?
File articles of organization
To officially form your LLC in Florida, you must file the Articles of Organization with the Florida Department of State. You can do this online through the Sunbiz website or by mail.
The filing fee is $125, which includes a $100 fee for the Articles of Organization and a $25 fee for registered agent designation. Processing times are typically 5 business days for online submissions and 12 business days for mail filings.
Required information includes:
- Your LLC's name
- Principal place of business
- Registered agent details
- Management structure
Ensure all information is accurate, as errors can lead to delays or rejection.
Create an operating agreement
An operating agreement is an internal document that outlines how your LLC will be managed. While Florida does not require LLCs to have one, it's highly recommended to prevent disputes and clarify ownership and operating procedures.
To create an operating agreement, include:
- Ownership structure: List all members and their percentage of ownership.
- Management roles: Define whether the LLC is member-managed or manager-managed.
- Profit and loss distribution: Explain how profits and losses are shared among members.
- Decision-making process: Outline voting rights and procedures for major decisions.
- Member responsibilities: Detail the roles and duties of each member.
- Adding or removing members: Specify rules for bringing in new members or handling departures.
- Dissolution process: Describe how the LLC will be dissolved if necessary.
Having a well-drafted operating agreement protects your business and ensures smooth operations.
Get an EIN
An Employer Identification Number (EIN) is a unique number assigned by the IRS for tax and business purposes. Florida LLCs use an EIN to file taxes, hire employees, and open business bank accounts.
To get an EIN:
- Apply online through the IRS EIN application portal (fastest method).
- Apply by mail or fax using Form SS-4.
- Apply by phone if you're an international applicant.
The EIN is free and issued immediately when applying online. Ensure your LLC is officially registered before applying to avoid processing issues.
How long does it take to get an EIN?
If you apply online through the IRS EIN application portal, you’ll receive your EIN immediately. Mail applications take 4-5 weeks, while fax applications are processed within four business days if you provide a return fax number.
How much does an EIN cost?
Getting an EIN is completely free when applying directly through the IRS. There are third-party services that charge fees to obtain an EIN on your behalf, however you can apply for one yourself at no cost through the IRS website.
How much does it cost to start and run an LLC in Florida
Establishing and maintaining a Limited Liability Company (LLC) in Florida involves several costs:
Formation costs total $125, which includes:
- Articles of organization filing fee: $100
- Registered agent designation fee: $25
Then, there are annual maintenance costs which include things like:
- Annual report fee: $138.75 (due by May 1st each year)
- Late filing penalty: Additional $400 if the Annual Report is filed after May 1st
Optional costs tack on a bit more of an expense, with the following:
- Certified copy of record: $30
- Certificate of status: $5
And finally, there are tax considerations. Florida does not impose a personal income tax but LLC profits are typically subject to federal income tax based on the members' individual tax rates.
What happens after your LLC is up and running
Starting your LLC is just the beginning. To stay compliant and protect your business, you’ll need to handle a few key tasks, like opening a business bank account, obtaining necessary licenses, and filing annual reports. Here’s what to do next.
Open a business bank account
A separate business bank account protects your LLC’s liability status and simplifies tax filing. To open one, you typically need the following:
- An EIN (Employer Identification Number) from the IRS, which is required for tax and banking purposes.
- A copy of your Articles of Organization, which proves that your LLC is legally registered in Florida.
- An operating agreement, especially if your LLC has multiple members, as some banks require it to clarify ownership and management roles.
- A business license, if applicable, since some banks may request proof that your business is legally authorized to operate.
Keeping your personal and business finances separate ensures limited liability protection and makes tax filing and bookkeeping much easier.
File for permits and required business licenses
Depending on your business type, you may need specific permits or licenses to operate legally in Florida. To determine your requirements:
- Identify your industry: Understand the nature of your business to pinpoint applicable regulations.
- Consult state resources: Visit the Florida Department of Business and Professional Regulation (DBPR) to explore licenses specific to your industry.
- Check local regulations: Contact your county or city government to learn about local licensing or permitting requirements.
Ensuring compliance with all relevant regulations helps avoid legal issues and keeps your business operations smooth.
File annual reports
In Florida, LLCs are required to file an annual report to maintain active status. The report is due between January 1 and May 1 each year. To file, visit the Florida Division of Corporations' website and enter your LLC's document number.
Review and update your business information as needed, then submit the report along with the $138.75 filing fee. Filing after May 1 incurs a $400 late fee. Failure to file by the third Friday in September may result in administrative dissolution of your LLC.
Things to know about Florida LLCs
Florida LLCs offer flexibility, liability protection, and tax advantages, but there are a few key things to keep in mind. From tax obligations to insurance requirements, staying informed ensures your business remains compliant and operates smoothly. Here’s what you need to know.
File taxes for a Florida LLC
In Florida, LLCs are subject to state corporate income tax if they elect to be taxed as corporations. The current corporate tax rate is 5.5%. LLCs taxed as partnerships or sole proprietorships are generally exempt from state income tax.
However, all LLCs must file an annual report with the Florida Department of State by May 1st each year. Additionally, LLCs with employees are required to pay reemployment tax on wages paid. It's essential to consult with a tax professional to ensure compliance with all federal and state tax obligations.
Florida LLC insurance
Specific insurance requirements for LLCs apply in Florida depending on the nature of your business and the number of employees. A few things to consider include:
- Workers' compensation insurance: Mandatory for non-construction businesses with four or more employees, and for construction businesses with at least one employee. This includes LLC members actively engaged in the business.
- Commercial auto insurance: Required if your business owns vehicles. Florida mandates minimum coverage of $10,000 for both Personal Injury Protection (PIP) and Property Damage Liability (PDL).
While general liability insurance isn't mandated by state law, it's often recommended to protect against potential lawsuits and liabilities. Additionally, certain professions may have specific insurance requirements so it’s a good idea to always verify with local authorities to ensure compliance.
Setting up an LLC in Florida: FAQs
How much does it cost to start an LLC in Florida?
The total cost to start an LLC in Florida is $125, which includes:
- $100 for filing the Articles of Organization
- $25 for registered agent designation
Additional costs may apply if you choose to use a professional registered agent or file for a DBA (Doing Business As). Florida LLCs must also pay an annual report fee of $138.75 to remain in good standing.
How long does it take for an LLC to be approved in Florida?
According to Sunbiz, your LLC is typically approved within 1-2 business days. Mailed applications take longer, usually around 12 business days for processing. Delays may occur if there are errors in your submission.
How do I start an LLC in Florida by myself?
You can start an LLC in Florida on your own by following these steps:
- Choose a name and check availability on Sunbiz.
- Appoint a registered agent who meets Florida’s requirements.
- File Articles of Organization online or by mail with the Florida Division of Corporations.
- Create an operating agreement.
- Obtain an EIN from the IRS for tax and banking purposes.
- File for necessary permits and business licenses if required.
- Submit an annual report each year to maintain compliance.
Disclaimer: This content should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
