What Is the Cost To Form a Florida LLC?
There are various factors to consider when contemplating the cost to start an LLC in Florida. Whether you choose to handle each of the requirements in establishing an LLC yourself or secure the services of a third-party provider, it’s important to familiarize yourself with the total costs of launching an LLC.
Following are several highlights related to establishing an LLC in Florida. Remember that your total costs may vary, depending on the details of your LLC and whether you handle filings yourself or use a solution provider to handle the filings for you.
| Requirement | Cost |
|---|---|
| LLC Name Selection | $0 |
| LLC Name Reservation | $25 |
| Registered Agent (Fee) | $25 |
| Articles of Organization (Filing Fee) | $100 |
| Operating Agreement | $0 – $725 (varies, based on choosing DIY or third-party provider option) |
| EIN Number | Free if obtained directly from the IRS |
| Franchise Tax Reports | Not applicable for LLCs in Florida |
| LLC Taxes | Varies (federal taxes apply, Florida has no state income tax) |
| DBA | $50 |
Florida LLC Articles of Organization Cost
The standard cost for establishing an LLC in Florida is a one-time $125 fee. This fee consists of a filing fee of $100 plus a registered agent fee of $25. Filing an LLC may be done by the members of the LLC or the registered agent. Establishing the LLC this way keeps costs at $125 since there are no other fees for a third-party provider.
When handled by a service that files for the establishment of an LLC on behalf of the members, costs can range from $50 to $200 on top of the initial $125 filing fee. Costs can rise significantly if the filing is handled by an attorney.
Florida Registered Agent Costs
The cost of hiring a registered agent in Florida can cost between $100 and $300 annually and depends on the provider and the services offered.
LegalZoom, for example, charges $249 each year to provide the services of a registered agent. Northwest Registered Agent offers registered agent services for $125 and Bizee (Powered by Incfile) offers registered agent services free for the first year when hired to form an LLC.
Corporations and LLCs in Florida must have a registered agent listed with their articles of incorporation to adhere to state law and maintain good standing with the secretary of state. The registered agent must maintain a physical presence in the state of Florida along with a physical address. A P.O. box is not allowed. Hiring a professional registered agent service makes this step easy. Also note that you can change your LLC address if you need to.
The registered agent receives and handles important tax and legal documents on behalf of the LLC, acting as a liaison between the state and the LLC. This structure is particularly important when members of the LLC reside in another state. The registered agent can also protect the privacy of the members by handling tax and legal documents on behalf of LLC officers.
LLCs, and other business entities, risk fines and closure if they do not maintain a registered agent and the requisite paperwork in Florida.
DBA Cost in Florida
A DBA, or “Doing Business As,” is a designation companies may use rather than their official, registered name. While not mandatory, an LLC may obtain a DBA if they wish to conduct business under a different name.
The Florida Chamber of Commerce lists the cost of obtaining a DBA as $50. To receive a certified copy of a DBA, an additional cost of $30 is required. Entities registering the use of a DBA are required to renew their DBA designation with the state of Florida on December 31 of the fifth year after initial registration and every fifth year thereafter.
Additional costs associated with obtaining a DBA in Florida include:
- Legal Notice Publication: Costs associated with this option can range from $25 to $75, depending on fees charged by the local newspaper.
- Hiring a third party: One may hire a third party or registration service to handle the filing of a DBA for a fee ranging from $50 to $150 per instance.
Additional fees may vary depending on the specific circumstances of each case and how the registration is handled.
LLC Operating Agreement Cost in Florida
An LLC Operating Agreement is an important document that outlines your business’s financial and functional decisions, including rules, regulations and provisions. This agreement is designed to guide the internal operations of the business according to what works best for the officers.
Hiring an attorney to help create this agreement can help ensure it complies with Florida state laws and meets all requirements. Fees related to hiring legal counsel to create an LLC Operating Agreement depend on the complexity of the agreement, but the average cost in the state of Florida is $690.
Key sections of an LLC Operating Agreement include:
- Organization: The organization outlines the company’s creation, the date it was created, the names of its members and the ownership structure.
- Management and Voting: The management structure of an LLC must be clearly stated in addition to outlining members’ voting rights.
- Capital Contributions: The capital contributions section documents the amount of capital each member paid to fund the LLC. In addition, this section outlines how members may raise additional capital.
- Distributions: Distributions provide guidelines regarding how profits and losses are distributed among members.
- Membership Changes: Membership details the process for adding and removing members, transferring membership, and guidelines for handling deceased members.
- Dissolution: The dissolution process details the parameters for dissolving the LLC.
The LLC Operating Agreement is an essential document intended to clarify legal rights and responsibilities, thereby mitigating confusion and safeguarding against future disputes.
Ongoing LLC Costs in Florida
Maintaining an LLC in Florida requires business owners to manage costs and fees on a recurring basis. These expenses are essential for the continued legal operation of the LLC. One of the most important costs is the annual report fee. There may also be fees related to renewing business licenses or permits. Following is a breakdown of the costs:
Annual Report Fee
Each year, the LLC must file an annual report in the state of Florida. This report includes essential business information like business name, address and registered agent details. The fee for filing this report is $138.75, and it must be filed by May 1 each year. A late penalty of $400 is imposed for missing the May 1st deadline. Filing the annual report must be done through the online system provided by Florida’s Division of Corporations. Understanding these fees and related deadlines is very important in ensuring the LLC remains in good standing with the state of Florida.
Registered Agent Fee
The registered agent fee in Florida is $25. There may be additional fees associated with the role of a registered agent. Those fees could be as little as $0, if you act as your own registered agent, or as much as $249 if you use a registered agent service. The fee largely depends on the service chosen and the responsibilities handled by the service.
Other Possible Fees
Depending on specific needs of the LLC, there may be additional fees in addition to the annual report and registered agent fees. For instance, it will cost $30 to obtain a certified copy of the LLC record. A certificate of status, if needed, costs $5.
Florida LLC Franchise Tax
Florida does not levy franchise or entity taxes on LLCs. As a result, the gains received from a Florida LLC are assigned to its members, who are then liable for the federal income tax on their individual earnings.
Florida Business License Cost
Not every LLC is required to obtain a business license. Some LLCs may need a license, or occupational license, depending on the nature of the business. The need for a license is also dependent on specific requirements outlined by the industry in which the LLC operates and the statutes governed by the state of Florida.
State law does require a license and certification for any business exposing customers to potential hazards and involves occupations where significant on-the-job training is required. Specific licenses or certifications required for some businesses include:
Florida Business Tax Receipt (BTR)
A BTR is required to operate certain types of businesses within the state of Florida. Not every business is required to have a BTR, but city and county authorities can provide details regarding which entities are required to obtain a BTR.
Agriculture and Consumer Licenses
These licenses are issued by the Florida Department of Agriculture and Consumer Services (DACS) to ensure that businesses comply with health and legal standards in areas such as product safety, training, distribution and manufacturing.
Professional Licenses
Specific professions like accountants, realtors, attorneys and healthcare professionals require a professional license.
Home Occupation Permit
If operating a business from home, you’ll need a home occupation permit from your local city or zoning authorities.
Federal Licenses and Permits
Businesses involved in alcohol sales, tobacco products, explosives or firearms handling, drug manufacturing or meat preparation must have these essential federal licenses.
To ensure that your business is compliant with all licensing requirements and remains up to date on any changes, it’s important to consult agency resources as well as state and local governments.
Is It Cheaper To Start a Florida LLC Yourself?
It may be cheaper to start an LLC as a DIY project, and many people do so. It’s worth comparing the benefits of DIY LLC creation compared to using a third-party service. Some may find that doing it yourself is the way to go, while others may believe using a service is the best option, especially if they can find a provider that offers top LLC services.
Regardless of the method selected, it’s worth mentioning that correctly setting up an LLC and maintaining its viability according to Florida’s legal and tax requirements is vital to ensuring the company remains a healthy, ongoing operation for years to come.
| DIY Filing | Using a Service | |
|---|---|---|
| Costs | Lower initial costs, typically around $125 for filing fees. No service fees. | Higher initial costs due to service fees. Filing fees plus service charges. |
| Potential for Mistakes | Higher, due to lack of professional guidance. Responsibility for ensuring accuracy falls entirely on you. | Lower, as services often have expertise and experience in filing. Professional reviews can minimize errors. |
| Accuracy | Dependent on your understanding of the process and attention to detail. Risk of overlooking important legal requirements. | Generally higher, assuming the service is reputable. Services are typically up-to-date with legal requirements. |
| Processing time | Can be quicker if you are familiar with the process. Direct submission to state agencies. | May take longer due to the involvement of a third party. Service processing times vary. |
| Customer Support | Limited to state agency resources. No dedicated support for the filing process. | Often includes dedicated support. Assistance with queries and troubleshooting during the process. |
| Ease of Process | Requires more effort and understanding of legal formalities. Suitable if you have experience or legal knowledge. | Streamlined process, often with step-by-step guidance. Less effort required from your side. |
DIY LLC Formation in Florida
Creating an LLC in Florida is quite simple and can be handled without professional support, though hiring a service is worth considering under more complex conditions. The steps for creating an LLC in Florida include the following:
- Name Your LLC: Start by checking whether the name of your business is available and meets Florida naming requirements. You may use the entity search tool available on the Florida Department of State website. If necessary, pay a fee to reserve the name for 120 days.
- Designate Registered Agent: Designated registered agent, be it a Florida resident or legal service firm, for handling official correspondences. The designated registered agent must have valid physical street addresses in Florida.
- File Florida LLC Articles of Organization: Filing the Articles of Organization can be done online or by mail through the Division of Corporations. The filing fee for the document is $125.
After your LLC has been established, take the following additional steps to ensure the LLC’s smooth operation:
- Establish an Operating Agreement: This necessary internal document describes the operational and financial structure of the LLC, though it is not required in Florida.
- Get an EIN: Apply for the Employer Identification Number through the IRS to ensure taxes are paid accordingly.
- Set up Business Accounts: Open a business account at your respective bank and consider establishing business credit cards or lines of credit.
- Management of Tax and Insurance: Understand Florida tax regulations and have the necessary insurance policies in place for your business.
- File Annual Reports: Florida LLCs must file an annual report for $138.75 to remain compliant.
Maintaining Your Florida LLC
A Florida LLC has various reporting requirements they must adhere to. LLC members, or their registered agent, must adhere to these requirements, or they risk losing their good legal standing. One primary requirement of an LLC is the filing of an annual report with the secretary of state on or by May 1 through the Division of Corporations website. Another principal requirement of an LLC is the obtaining of an Employer Identification Number (EIN). The LLC will also designate and maintain a registered agent in Florida. Should these requirements not be met, fines could be levied with loss of good standing in the state.
A few things to keeping the status of an LLC in Florida:
- Annual Report Filing: A filing fee of $138.75 shall be filed according to the LLC’s Annual Report Filing no later than May 1 of each year.
- Tax Compliance: An LLC is exempt from paying corporate income tax in the state of Florida.
- Federal EIN Requirement: A Florida LLC must obtain an EIN for federal tax purposes and other related transactions associated with the business.
- Registered Agent: Another requirement for an LLC in Florida is the presence of a registered agent who must be available during regular business hours.
- Licensing and Permits: The LLC must comply with all local and state licensing requirements in addition to necessary permits based on its operations.
The Bottom Line
Creating an LLC in the state of Florida can prove beneficial for entrepreneurs and small business owners looking to establish a business identity in a state that offers ease of doing business and attractive tax laws on top of the tax benefits offered by an LLC. While there are necessary requirements to establishing and maintaining an LLC in Florida, those requirements are not burdensome and can be easily managed with some planning and foresight.
Frequently Asked Questions
Filing an LLC in Florida requires a fee of $100 in addition to a registered agent fee of $25. Optional fees include acquiring a certified copy of the LLC for $30 and receiving a certificate of status for $5.
The reinstatement fee for a disillusioned LLC is $100. Once reinstated, other ongoing costs and filing requirements must be met.
The total cost to start an LLC in Florida varies and depends on several factors. The baseline cost begins at $125. Optional costs include obtaining a certified copy of the LLC registration and certificate of status. Other fees, such as licenses, can bring the cost of starting an LLC to over several hundred dollars.
The dissolution of an LLC in Florida requires a fee of $25.
In general, Florida is an excellent place to start an LLC. With initial costs starting at only $125, relatively low annual reporting fees and licenses, and no state income tax levied on LLCs, Florida may be an ideal place for any entrepreneur to launch a thriving business.
Methodology: Our System for Ranking the Best LLC Formation Services
To provide consumers with objective and accurate information, our credentialed legal experts created a comprehensive rating system for Limited Liability Company (LLC) services. We researched five online LLC, registered agent and trademark registration services, including ZenBusiness, LegalZoom, Swyft Filings, Northwest Registered Agent and Bizee (formerly Incfile).
We conducted a survey in 2024 of 200 professionals who were currently using LLC services or had used LLC services within the past year. We analyzed the results of this survey to determine the following rating criteria:
- Features (20%)
- Value for Money (25%)
- Customer Service (20%)
- Usability (25%)
- Reputation and Credibility (10%)
Visit the full LLC methodology page for more details on our rating system.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.