How To Start An LLC In Florida (2024 Guide)

LLC stands for limited liability company. It is a legal entity created for running a business. LLCs are hybrids in that they can provide the pass-through tax benefits of a sole proprietorship or partnership while offering the liability shield of a corporation.

New business owners like the LLC structure because it passes through profits to owners personally so that the profits are not double taxed as company profits and personal income when distributed.

Let’s look at some pros and cons of an LLC in Florida.

Pros	Cons
Flexibility of taxation	Members can only pay themselves wages if they elect S-corporation taxation
Less paperwork than a C-corporation	Annual renewal fees
Unlimited number of members	May have a franchise tax fee
Flow-through taxation reduces double taxation of profits	Hard to raise capital
Limits member liability

See MoreSee Less

Filing for an LLC in Florida is fairly straightforward and affordable. While you can pay a service to do the work for you, it is easy enough to file for a Florida LLC on your own.

Step 1. Choose Your LLC’s Name

What’s in a name? Quite a lot if you want to get it right the first time. Begin with a search of the state records to ensure no one else has a business with the name you wish to use. You can quickly do that through the Florida Department of State’s business entity search engine.

If you aren’t ready to start your LLC right away, you can reserve your LLC business name by submitting a letter to the Secretary of State containing:

• Your desired business name
• Your full name
• Your current address

If the Florida Secretary of State finds the name is available, you can pay $25 to hold it for a period of up to 120 days.

Avoid future complications by following the state rules regarding business naming practices. For instance, remember by law the words “limited liability company” or the abbreviation “LLC” or “L.L.C.” must appear as part of the official name.

Step 2. Designate a Registered Agent

Each LLC must have a registered agent. In short, a registered agent is either an individual or a legal service firm that accepts official mail and correspondence on behalf of your business.

Florida allows an owner or employee to act as the registered agent. To qualify, the person must be a Florida resident who is 18 or older and has a physical address within the state. This address is known as the “registered office,” and it can be the same as your business’s address. That said, an LLC can’t be its own registered agent.

To keep costs minimal, you may want to elect yourself as the Florida LLC’s registered agent, though that comes with additional responsibility. Alternatively, you can pay to have a registered agent service perform the role for you.

Step 3: Submit the Florida LLC Articles of Organization Form

Once you have a name and registered agent in mind for your Florida LLC, file all necessary documentation with the Department of State’s Division of Corporations. You can file online through Sunbiz.org, or you can complete and mail a paper form. Meanwhile, foreign or out-of-state entities turn in an application for authority to transact business in Florida. This form cannot be filed online:

• Florida LLC Forms
• Foreign LLC Forms

Though domestic and foreign LLCs require separate paperwork, Florida charges the same fees for both entities. Whether you’re a domestic or foreign business entity, LLC filings will cost $125, according to the Division of Corporations.

Florida is not a state where every business must apply for a business license. State business licenses are not required unless you are conducting certain business activities. If your industry is a regulated industry, you may need to obtain a state license.

For example, the following require licensing by the state:

• Architects, interior designers and engineers
• Construction contractors
• Real estate brokers
• Insurance agents
• Security services
• Medical professionals
• Barbers and cosmetologists
• Accountants

Many Florida cities and counties have local business license requirements. In addition, if you will be selling or leasing tangible property you will need a seller’s permit from the Florida Department of Revenue.

The price of registering an LLC varies by state. In Florida, it costs $100 to get a Florida LLC, plus an additional $25 to designate a registered agent, making the total cost $125. If you hire an online service or attorney to file paperwork for you, you’ll pay additional fees. It’s crucial to do your own research and check with the state before starting the LLC process.

Once you submit your forms, await confirmation that your application got accepted. If you filed online, confirmation would arrive via email. If you physically applied, confirmation will be sent to you by mail. Below are additional helpful details to know once you set up the LLC.

Set Up Your Operating Agreement

Once your Florida LLC gets established, consider setting up an operating agreement. This document isn’t a requirement, but its existence is ideal for laying the functional groundwork for your organization. It establishes your LLC’s purpose and the role of each member. Creating an operating agreement demonstrates your intent to create a new business entity with assets completely separate from your finances.

Get an EIN for Your Florida LLC

An EIN is a federally issued nine-digit identification number similar to a Social Security number. EIN stands for employer identification number and it is issued by the IRS. It is free to get an EIN and takes just a few minutes of time. Apply for the EIN directly with the IRS by providing them with basic information about your Florida LLC.

Create Business Accounts

Once you have your operating agreement and your EIN, you can start to get your business accounts opened. You’ll need to get a bank account. The bank will want your EIN and articles of organization from Florida to open a new business account. Remember to always keep business resources separate from your personal resources to avoid commingling funds and exposing your personal assets.

Apply for business credit cards and loans to gain access to capital and begin establishing credit for the new business. Keep in mind that because you are new, financial institutions may require a personal guarantee on loans. This means you are personally responsible for the debt even though the LLC limits personal liability. Shop around for a business lender that doesn’t require a personal guarantee if you want to keep everything separate from the start.

Talk to an insurance agent about what policies your new Florida LLC will need. There are many types of business insurance policies to cover various types of risk. At the very least, you will likely need general liability insurance and workers’ compensation insurance if you have employees.

Manage Your Taxes

Florida has no personal income taxes. If you choose to file your Florida LLC taxes as a sole proprietor, partnership or S-corporation, you won’t need to pay state taxes on the LLC in Florida. However, if you choose to file the LLC’s taxes as a C-corporation, you’ll be subject to the 5.5% corporate tax rate.

It makes sense to pass through profits so that you don’t need to pay corporate income taxes on it. Talk to an accountant if you have questions as to why it might benefit your company to file taxes as a C-corporation or an S-corporation.

File Annual Reports

Florida requires that every LLC file an annual report with the state. Unlike other types of annual reports, this is not a financial report. It simply reviews and updates basic information about your company. It costs $138.75 to file your annual report with the state. Make sure to do this to remain compliant with state laws, avoid late filing penalties and keep your business operating legally.

If you need additional help to start an LLC in Florida, check out these useful resources:

• How To Start a Business in Florida
• Best Florida Registered Agent Services
• Get a Florida Business License
• Start a DBA in Florida