Florida’s beautiful beaches, booming economy, and status as a tax-friendly state make it an attractive spot for entrepreneurs. The Sunshine State even claimed the title of the third-best state to start a business in 2024.
Of the 3.5 million business entities in Florida, almost 2.5 million are limited liability companies (LLCs). LLCs offer benefits like liability protection and pass-through taxation. Plus, Florida LLC owners do not pay state income tax on personal income. Want to take advantage of these benefits and see your business idea become a reality? Learn how to start an LLC in Florida to get started.
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How to start an LLC in Florida
Starting an LLC in Florida is a relatively quick and straightforward process.
Choose a business name, file the Articles of Organization for Florida Limited Liability Company, and take a few other steps to get started.
1. Choose a business name
Choose a unique business name that isn’t in use by another business in Florida. Your business legal name must end with “Limited Liability Company,” “LLC,” or a similar abbreviation.
You may opt to operate under a “doing business as” (DBA) or fictitious name for advertising and sales purposes. Using a fictitious name lets you choose a business name that doesn’t include “Limited Liability Company” variations.
Search Florida records to determine if the fictitious name you want to use is already in use. If the name is available, you can apply online or print and mail the Application for Registration of Fictitious Name. There is a $50 fee to register a Florida DBA. Your fictitious name is valid for five years.
2. Select a registered agent
The Florida Department of State requires that you select a registered agent to accept service of process on your behalf.
The registered agent is an individual or legal entity. Your registered agent must have a physical street address in Florida (not a P.O. Box).
A registered agent can be:
- An individual or principal associated with the business
- A service company that provides registered agent services (for a fee)
- An attorney or accountant that provides registered agent services (for a fee)
3. File the Articles of Organization for Florida
You must file Florida’s Articles of Organization to form your LLC and pay a $125 filing and registered agent designation fee. You can e-file the form or print and mail it to the Division of Corporations.
Include the following information on your Articles of Organization form:
- LLC name
- Principal office address
- Mailing address
- Registered agent name, address, and signature
- Authorized individuals of the LLC (e.g., officers)
- The effective date of your LLC (if different from the date of filing)
- Signature of a member or authorized representative
4. Create an operating agreement
An operating agreement puts your LLC’s procedures and operations guidelines (e.g., management structure) in writing.
Florida does not require LLCs to create an official operating agreement. However, an operating agreement provides benefits like conflict resolution and LLC formalization.
5. Obtain business licenses and permits
Florida doesn’t require a general business license, but you may need licenses depending on your business activities and location.
For example, you may need sales tax permits or industry-specific licenses, like a liquor license.
6. Apply for an EIN
An Employer Identification Number (EIN) is a tax ID number that identifies your business.
According to the IRS, an LLC needs an EIN if it has employees or is required to file certain excise tax forms. The IRS also states that most new single-member LLCs classified as disregarded entities must have an EIN.
You can apply for an EIN online, or via fax or mail.
7. Register for taxes
New Florida employers must create an account with the Florida Department of Revenue for your state reemployment tax account.
8. Open a business bank account
Limited liability companies must open a separate business bank account. You’ll need your Social Security number, EIN, articles of organization, and business name to get started.
9. Set up your accounting books
The IRS requires all business owners to keep records for preparing tax returns, supporting claims on tax returns, and more.
You can use accounting software to simplify recordkeeping and keep all accounting records in one secure place.
10. File the beneficial ownership information (BOI) report
Beneficial ownership information reporting is a requirement for most limited liability companies.
Report information about your business and beneficial owners to FinCEN within a certain number of days after your LLC registration becomes effective.
How much does it cost to open an LLC in Florida?
You can open an LLC in Florida for as little as $125, which covers the Articles of Organization and registered agent designation filing fees. You can also pay an additional $30 to obtain a Certified Copy and pay an additional $5 for a Certificate of Status.
If you want to operate under a fictitious name, you must pay the application fee of $50. You can also choose to pay a $30 fee for a Certified Copy of Fictitious Name Registration. There’s also an optional $10 fee for the Certificate of Status for Fictitious Name Registration.
You may have additional costs associated with opening an LLC in Florida, such as:
- Registered agent services
- Business tax attorney fees to help with LLC formation
- License and permit application fees
There is also an annual fee of $138.75 for limited liability companies. You must pay the fee and file the annual report to update or confirm your information with the Florida Department of State.
Document | Fee | Frequency |
---|---|---|
Articles of Organization* | $125 | When forming your LLC |
Annual Report | $138.75 | Annually |
Fictitious Name Registration, if applicable* | $50 | Valid for 5 years |
*There are additional fees for optional certified copies and status certificates.
How do I start an LLC in Florida myself?
You can start an LLC in Florida by filing the Articles of Organization.
To file the Articles of Organization, go to the Florida Department of State website. From here, you can:
- File online with a credit card
- Mail a completed Articles of Organization form to the Division of Corporations with payment
What are the filing requirements for a Florida LLC?
There are several documents you need to form your LLC and maintain an active status. These forms include:
Document | Purpose | Mandatory? |
---|---|---|
Operating Agreement | The official document you must file with the Florida Department of State to form your LLC. | Yes |
Fictitious Name Registration | The form you must file if your LLC conducts business in Florida under a name other than your legal name. | Maybe |
Operating agreement | An internal document outlining ownership and operations. | No |
Annual Report | The form you submit annually to maintain your LLC’s active status. | Yes |
How long does it take for an LLC to be approved in Florida?
The Florida Department of State processes LLC documents in the order they are received. Typically, the state processes online LLC applications within a week and mailed LLC applications with a month.
You can view current processing dates on Florida’s state website.
Do you need a business license to start an LLC in Florida?
You may need a business license to operate your LLC in Florida depending on your company and location. However, there isn’t a general license to do business in the state.
Do you have to file an annual report for an LLC in Florida?
Yes, you must file an annual report to maintain your LLC’s active status in Florida. You must file the report each year by May 1 and pay the $138.75 filing fee.
Florida will charge a late fee of $400 if you do not file your annual report by May 1. The state will also dissolve your LLC if you do not file by the third Friday in September.
The report updates or confirms the state’s records. You must provide your:
- Document number
- Entity name
- FEIN
- Principal place of business address
- Mailing address
- Registered agent name, address, and signature
- Principals names and addresses (officers/directors/managers/authorized representatives/general partners)
- Email address
You can also request a Certificate of Status when you file your annual report and pay the $5.00 fee. This is optional.
For more information about the annual report, check out Florida’s website.
What are the advantages of forming an LLC in Florida?
Now that you know how to start an LLC in Florida, you might be wondering if it’s worth it.
There are several benefits of forming an LLC in Florida, including:
- Liability protection
- Flexibility for owners
- Pass-through taxation
- Inexpensive and simple start
What are the disadvantages of an LLC in Florida?
Although structuring your Florida business as an LLC has several advantages, also consider some of the cons of this business structure.
You are responsible for forming your LLC according to Florida’s rules and regulations. This includes paying one-time filing fees as well as the annual report fee. But overall, LLCs are an inexpensive and simple business structure.
Another disadvantage of LLCs in Florida is specific to single-member LLCs. One of the biggest benefits of forming an LLC is liability protection. However, a 2010 Florida Supreme Court decision ruled that a single-member LLC’s assets were not protected. As a result, some of the benefits of forming an LLC may not extend to single-member LLC owners.
Do LLCs pay income tax in Florida?
Most LLCs do not pay state income tax in Florida.
Florida does not impose an individual state income tax. LLCs use pass-through taxation, which means taxes pass through the LLC and onto the owner. But because there is no state income tax, LLCs do not pay state income tax in Florida.
Most LLCs are structured as partnerships or disregarded entities. However, you can choose to structure your LLC as a corporation. Your business is subject to a 5.5% income tax rate if your LLC is incorporated.
Do I need an EIN for my LLC?
You must have an EIN if you have employees or must file certain excise tax forms. Most new single-member LLCs classified as disregarded entities need to have an EIN.
For more information on whether you need an EIN for your LLC, check out the IRS website here.
Can you be a single-member LLC in Florida?
Yes, you can form a single-member LLC in Florida. Single-member LLCs enjoy many of the benefits of structuring as a limited liability company, such as pass-through taxation.
But again, a 2010 Florida Supreme Court decision indicated that single-member LLCs’ assets may not be protected. Consider consulting an attorney for more information on asset protection for single-member LLCs in Florida.
Ready to start your LLC in Florida?
Knowing how to start an LLC in Florida is one of the first steps to bring your business idea to life.
Here’s a quick starting an LLC in Florida checklist to get started:
- Choose a business name
- Select a registered agent
- File Florida’s Articles of Organization
- Create an operating agreement
- Obtain business licenses and permits
- Apply for an EIN
- Register for taxes
- Open a business bank account
- Set up your accounting books
- File the beneficial ownership information report
Budget for LLC startup costs, including the $125 fee to file the Articles of Organization, and ongoing costs, such as the $138.75 annual report fee.
Once you set up your LLC, it’s time to run your business. Track the money going in and out of your business with Patriot’s online accounting software. Invoice customers, generate accounting reports, and so much more. Try it for free today!
This is not intended as legal advice; for more information, please click here.
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