How to Start an LLC in Florida (2024 Guide)

If you’re considering forming a Florida LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, and create an LLC operating agreement.

But there’s more.

Forming your LLC in Florida costs about $125, and it takes about 5 business days to be approved if you file online, which is pretty fast if you ask me.

This guide compiles all the information you need to open an LLC in Florida today.

What Are the Steps to Start an LLC in Florida?

To start an LLC in Florida, you need to:

• Step 1. Choose and search for a unique name
• Step 2. Designate a registered agent in Florida
• Step 3. File Articles of Organization with the state
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. Register for state taxes
• Step 7. File annual reports
• Step 8. Finally, obtain any local permits or licenses.

The first five steps are the most critical steps you must follow, while the rest comes later.

But let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Choose a Name for Your Florida LLC

Picking a name for your LLC is a big deal because it’s how people will recognize your business. Start by checking if your preferred name is available through the Sunbiz Division of Corporations on the Florida Department of State’s website.

If your name has already been taken, brainstorm a new one.

To show that it’s an LLC, make sure your name includes “Limited Liability Company,” “LLC,” or “L.L.C.”

I would avoid words like “attorney,” “lawyer,” “credit union,” bank,” or “insurance,” which might need extra approvals. It’s also a good idea to include a word that describes what your business does. And if you’re thinking about a website, check that the matching domain name is available and free from trademark issues.

Step 2: Designate a Florida Registered Agent

A registered agent is a person or service that acts as your business’s official contact for your Florida LLC. They receive important legal documents, tax notices, and other official mail.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in Florida:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Florida Registered Agents

Florida law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Florida?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: Prepare and File Your Articles of Organization

The Articles of Organization is the most important document that officially registers your LLC with the state of Florida. This form includes essential details such as your LLC’s name, address, registered agent, and members’ or managers’ names.

To file your Articles of Organization in Florida, follow these steps:

Step #1. Complete the Form: Obtain and complete the Articles of Organization form from the Florida Division of Corporations website.

Include the following:

• Your LLC’s principal place of business (street and mailing address)
• The registered agent’s name, address, and signature names and addresses of managers (if your LLC is manager-managed)
• The effective date of the LLC (up to five business days before or 90 days after the filing date)
• Signature of an authorized representative or member

Step #2: File Online or by Mail: You can file your Articles of Organization online through the Sunbiz Florida Division of Corporations website or by mailing the completed form to:

Division of Corporation
P.O. Box 6327
Tallahassee, FL 32314

Step #3: Pay the Filing Fee: The filing fee is $125. Pay by credit card, check, money order, or mail for online submissions.

Once your articles are filed, the state will review and approve them. This process usually takes a few business days. After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.

Step 4: Prepare Your Operating Agreement

An operating agreement is a document that outlines how your LLC will operate. It includes details about ownership, management, and duties.

While Florida does not require an operating agreement, having one is smart. It helps prevent misunderstandings among members and protects your limited liability status.

Here are some key components to include in your operating agreement if you choose to prepare one:

• Ownership Structure: Listing all members and their ownership percentages.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

Creating an operating agreement may feel complex, but it’s essential for clarity.

It serves as your LLC’s rulebook, guiding operations and avoiding conflicts down the line. Keeping everyone on the same page is even more vital if you have partners.

Step 5: Obtain an EIN for Your FL LLC

An Employer Identification Number (EIN) is a unique nine-digit number the IRS assigns. It identifies your business for tax purposes.

You will need an EIN to open a bank account, hire employees, file taxes, and apply for business licenses and permits.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

What are the Different Methods To Form a Florida LLC?

To form an LLC in Florida, you have 3 options: the DIY approach, the hands-off approach using an LLC formation service, or an attorney. Each method is unique but comes with its own perks and drawbacks.

DIY LLC Formation in Florida

Forming an LLC by yourself is a straightforward option. You will fill out and submit the Florida Articles of Organization and pay the required filing fee.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you’re going to be serving as your registered agent, you’d be risking having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free so your personal address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in Florida?

If you’re looking to start an LLC in Florida on a budget, the most affordable option is to do it yourself online. By filing the Articles of Organization directly with the Florida Department of State, you can keep costs between $125 and $150, depending on your needs.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Florida?

There are a myriad of Florida LLC services from which to choose. Choosing the wrong one can affect your Florida LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Florida LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for 1 year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands out from Florida LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Florida?

Forming an LLC in Florida costs around $125, which covers the Florida LLC formation fees. However, there are other fees you need to be aware of.

Here’s a breakdown of the entire Florida LLC costs:

Requirement	Cost
New LLC Filing Fee (Articles of Organization)	$125
LLC formation service	$39 (via Northwest)
Registered Agent Fee	$0 (via Northwest)
Florida Annual report	$138.75/yearly

When forming a new company in FL, it is ideal to budget about $260-$300 for the first year. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

That said, the most significant (and important) expense for every Florida business owner is filing the Articles of Organization, which costs $125.

Pros and Cons of Forming an LLC in Florida

6 Important Things To Do After Creating Your Florida LLC

After forming your Florida LLC, there are important steps to ensure your business runs smoothly. These actions help safeguard your business, maintain compliance, and set you up for future success.

1. Research the Best Licenses and Permits for Your Business

Firstly, the good news is that Florida doesn’t have a state general business license, which is fantastic!

Before starting operations, make sure you secure all required licenses and permits if necessary. The specific types you need will depend on your business activities and location.

Ensuring these are in order before officially starting your LLC is crucial. Florida typically requires most businesses to obtain a Business Tax Receipt before operating in the state.

Florida has two main licensing agencies: the Department of Business and Professional Regulation (DBPR), which handles licenses for professions like alcohol retailers, barbers, and veterinarians, and the Department of Agriculture and Consumer Services (DACS), which covers areas such as pawn shops and private investigators.

Furthermore, Florida has various smaller, specialized licensing agencies. Check the state agency directory to determine if your business needs specific licensure.

Check the Florida Division of Corporations website for state-level requirements, and visit local city or county websites for additional information on local permits.

2. Create Business Accounts for Your LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your personal funds. This separation simplifies your accounting and helps safeguard your personal assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding Florida Tax Requirements and Managing Your Taxes

Getting a handle on Florida’s tax requirements is crucial for your LLC’s success.

After setting up your LLC, you must choose your tax classification:

• Pass-Through Entity: With this setup, your LLC’s income and losses pass through to your personal tax return. You pay taxes on your share of the LLC’s profits at the individual level. This is beneficial in Florida because there is no state income tax, so you avoid additional state-level taxation.
• S-Corporation: An S-Corp also passes income through to members but splits income between salary and dividends. This can potentially lower your overall tax liability by reducing the amount of self-employment tax.
• C-Corporation: Opting for C-Corp status means paying a 5.5% corporate income tax in Florida and federal taxes. While this involves more complex filing, it allows for various tax reduction strategies, such as deducting wages paid to members classified as employees.

4. File Annual Reports

To keep your LLC in good standing with Florida, you must file an Annual Report with the Division of Corporations annually. This report is due between January 1st and May 1st, and the filing fee is $138.75 as of when this guide was updated.

If you miss the deadline, a late fee of $400 applies, and failure to file by the third week in September could result in administrative dissolution, meaning you would lose the ability to operate as an LLC in Florida.

The Annual Report doesn’t require detailed financial information. Instead, it verifies that your LLC complies with state requirements.

You’ll need to provide:

• Your unique 6- or 12-digit document number
• Entity name
• Federal EIN
• Address of principal place of business
• Mailing address
• Names and addresses of your LLC’s principals

Filing is straightforward and can be done online through the Florida Division of Corporations website. To ensure compliance, it is a good idea to check for any updates to fees or deadlines each year.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions. Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

6. Setup Your Business Online Presence (optional)

In today’s digital age, online presence can significantly benefit your business. Start by creating a professional website. This platform allows you to showcase your services and connect with customers.

Consider using social media to engage your audience. Platforms like Facebook, Instagram, and LinkedIn can enhance your visibility.

Florida LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

When starting a business in Florida, you have several structures, each with unique features. Here’s a breakdown:

Sole Proprietorship

A Florida sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. This means if your lemonade stand faces financial trouble or legal issues, your personal assets, like your car or home, could be at risk. It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

A Florida partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your personal assets could be at risk, too. Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your personal assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe. It’s more formal than a sole proprietorship or partnership but offers flexibility in management and tax treatment. LLCs are ideal for small to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your personal tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A Florida corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders. A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your personal assets are protected.

Corporations can raise capital more easily by issuing stock and can offer employee benefits. However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Florida

Starting an LLC in Florida is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

In summary, here are the most important steps to form your LLC in Florida:

• Choose a name for your LLC and search for its availability on search records
• Appoint a registered agent to handle legal documents.
• File Articles of Organization with the Florida Secretary of State.
• Create an Operating Agreement to outline ownership and management.
• Obtain an Employer Identification Number (EIN) from the IRS.

The filing fee for the Articles of Organization is $125.

After forming your LLC, prepare for annual reports, which cost $138.75 yearly.

Learn More About Starting an LLC in Florida

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

Frequently Asked Questions

Can I change my registered agent in Florida?

Yes, you can change your registered agent in Florida. You’ll need to file a form with the Florida Department of State to update this information. There may be a small fee for processing the change.

How do I change my Florida LLC’s name?

To change your LLC’s name, file an amendment with the Florida Department of State. Include the new name you want and pay the required fee. Make sure the new name meets Florida’s naming guidelines.

How do I renew my Florida LLC?

Florida LLCs do not require annual renewal. However, to keep your LLC in good standing, you must file an annual report each year. This report is typically due on May 1st and incurs a fee.

How do I dissolve an LLC in Florida?

To dissolve your LLC, you must file articles of dissolution with the Florida Department of State. This process involves paying a fee and settling all debts and obligations before closure.

How do I add a member to a Florida LLC?

You should first check your operating agreement to add a member to your LLC. If it allows for new members, you may need to file an amendment and update your records accordingly.

How do I add a DBA to an LLC in Florida?

To add a “Doing Business As” (DBA) name to your LLC, file a form with your county clerk’s office. This usually involves a small fee. Ensure that the DBA name you choose is not already in use.

Can a minor own an LLC in Florida?

In Florida, a minor can own an LLC, but an adult must manage it. The adult will handle responsibilities and legal obligations until the minor reaches the legal age of majority.

What is the deadline for filing a Florida LLC annual report?

The deadline for filing the annual report for your Florida LLC is May 1st each year. You may incur late fees or risk dissolving your LLC if you miss this deadline.

Does LLC expire in Florida?

An LLC does not expire in Florida as long as you meet filing requirements, including submitting annual reports. Failure to file these reports can lead to dissolution.

Can a non-resident open an LLC in Florida?

Yes, a non-resident can open an LLC in Florida. You will need a registered agent with a physical address in Florida to receive important documents and notices.

Can I buy a house with my LLC in Florida?

Yes, you can buy a house with your LLC in Florida. Buying property through an LLC can offer you limited liability protection. Consult a real estate professional for more guidance.

Can you have multiple businesses under one LLC in Florida?

While you can operate multiple businesses under one LLC in Florida, it is often advised to create separate LLCs for different ventures. This can help protect each business’s assets and liabilities.

Is Florida a good state to form an LLC? Is it worth it?

Florida is often considered favorable for forming an LLC due to its business-friendly laws and regulations. It offers several advantages, including liability protection and flexible management structures.

Can one person form an LLC in Florida?

Yes, one person can form an LLC in Florida. This is known as a single-member LLC. You will have the same benefits of liability protection as a multi-member LLC.