How to Start An LLC In Florida
- Why Start an LLC in Florida?
- Before Setting up an LLC in Florida
- How Much Does it Cost to Start an LLC in Florida?
- How to Start an LLC in Florida
- Step 1 – Choose a Name for Your LLC Company
- Step 2 – Find a Registered Agent in Florida
- Step 3 – Submit your Articles of Organization
- Step 4 – Operating Agreement
- Step 5 – Get an Employee Identification Number
- Final Word: How to Start An LLC In Florida
Florida is one of the best locations in the United States for a business. It is a highly affordable state, with one of the largest populations and a population with a relatively good expendable income. In this article, we will look at how to start an LLC in Florida and some great advantages.
Why Start an LLC in Florida?
There are many reasons why you will want to create an LLC in Florida, the sunshine state. For example, the state has one of the most supportive local governments with encouragement to research and develop new products. There are new legal options for testing unmanned vehicles, simplifying access to certifications and professional licensing, and also testing fintech products.
There are also low tax structures and a great business climate. The state has no personal income tax and only a 5.5% corporate tax rate. There are no payroll taxes either. Therefore, those that are starting a business in the state can benefit from better cash flow and an excellent corporate culture.
And it isn’t just business owners who are realizing this. There is a lot to be said about the quality of life in the state. More than 300,000 people move to the state every year, attracted by the number of job opportunities but also the lower cost of living in the state.
And this can help with workforce and talent attraction, which can help brands to find the talent they need to make their business a success.
Finally, the state has lots of infrastructure that can help businesses to thrive. With more than 130 public-use airports and 20 commercial airports alongside the 15 deep-water seaports, there are plenty of opportunities for imports and exports. The seaports alone contribute to $117.6 billion of the state’s economy.
And compared to the states nearby, Florida is both affordable and business-friendly. Here is a table to show the comparison.
|State||LLC Filing Fee||LLC Annual/Biennial Fee||Corporate Tax Rate||Nominal GDP per capita|
|Florida||$125||$138.75 (every year)||5.50%||$56,301|
|Georgia||$100||$50 (every year)||5.75%||$63,271|
|Alabama||$200||$100 minimum (every year)||6.50%||$49,027|
|Mississippi||$50||$0 (however, an information report must be filed every year)||4.00%||$42,411|
|US Average||$130.38||$89.34 (every year)||5.60%||$64,773.08|
Before Setting up an LLC in Florida
One of the main benefits of an LLC in the state is that you can have personal and corporate financials that are different. Therefore, your personal assets are protected should your business build up significant debt.
However, there are also other advantages. For example, you can find it easier to get financing, especially in the state of Florida where a lot of investors reside with an LLC. And you can get better rates from your suppliers. And the tax rates for LLC owners are much better.
Those businesses that also register as an LLC are protecting their name from use by other entities. If someone else does use the name without authority, then you can take them to court to prevent them from using the name.
LLCs are simple, quick, and affordable to establish. They’re the perfect option for smaller businesses.
However, you will need to ensure you have everything required to establish the LLC. Therefore, it is important to read this guide below and make sure that you understand the process and have everything that you need.
Should you need some help, there is always the chance to speak to ZenBusiness or IncFile, who can help you register an LLC in any state in the USA.
How Much Does it Cost to Start an LLC in Florida?
There are numerous costs associated with starting an LLC in Florida. For example, submission of the articles of organization will cost you $125. However, you will need to pay the mandatory registration fee, which is $25. There is also the option to register a DBA name, which is $50.
If you are based in another state and looking to register in that state, you will need to page $125, in addition to a $25 registration fee.
Every year, you will need to pay the annual reports fee, which is $138.75, and the State tax of 6%.
How to Start an LLC in Florida
Here are the steps that you need to follow when you want to start an LLC in Florida. These are very simple steps that can be completed really quickly.
Step 1 – Choose a Name for Your LLC Company
The first thing that you need to do is create a name for your business. Several laws are going to regulate what name you can use in the state. Those laws are:
- The name needs to be original, and not in use by another business entity.
- The name should have the suffix that identifies the business as an LLC.
- Certain words are restricted and require special permission.
- The name cannot be confused with government agencies.
You can check for business name availability within the state very easily. The first task is to search on Google and social media. However, there are some brands that you will not find on these platforms. Therefore, you need to do a business name search within Florida to ensure that your name is not in use. This is a free option. However, you should be sure that the domain has not been taken as well with a free domain search.
You may also want to use a DBA name, which allows you to have a registered LLC business name and another name that you can trade under. Technically they are the same business, but the DBA name can be easier for audiences to remember. The filing cost for the DBA is $50. The DBA name should also be unique.
Once you’ve found the name that you would like, and you might need to get help from a business name generator, then you will want to reserve your name.
Step 2 – Find a Registered Agent in Florida
It is important to get a registered agent in Florida. This is a person or business entity that acts as an official entity that can accept official documents, tax notices, legal papers, and lawsuits for your LLC business. There are lots of options and you can appoint yourself, an employee, a co-owner, or another entity. There are a few requirements for the registered agent:
- They should have a physical address in the state.
- The person must be at least 18 years old.
- They must be authorized to provide registered agent services.
- The individual or corporate entity should be available during regular business hours.
Step 3 – Submit your Articles of Organization
Now the most important step is to create and file the Articles of Organization. These are the documents that include the basic information for the LLC business. It also allows your organization to be officially registered. The document should include the following information.
- Name of the LLC
- Official physical and mail address of the LLC
- Name, signature, and address of the agency
- Details of the managers and members of the LLC
- The management structure
- Effective date
- Business purpose
- Signature of an authorized representative
The Articles of Organization can be filed online or by filing the documents by mail/in person. The fee for the document submission is $125. This is not the cheapest state to file the documents in, but the savings will come later on. If you are going to be registering as a foreign LLC, there is an additional cost of $125.
Step 4 – Operating Agreement
A business doesn't need to create and complete an operating agreement in the state. But it is highly recommended that all LLCs have a document. The Operating Agreement is a legally-binding document that outlines the business purpose and operating structure, how decisions are made, and more.
The operating agreement will serve as a basic reference point for future legal matters.
Step 5 – Get an Employee Identification Number
Whether or not you have an employee. It is highly recommended to register and get the Employee Identification Number with the IRS. This is a 9-digit number that is assigned by the agency. It allows you to hire employees, and fulfill tax duties and other options. It can also help with opening a bank account.
For the EIN in Florida, you need to get a State Certificate from Florida. Then you can apply online for free.
There are also other documents that you might need including business licenses. For example, if you’re going to be selling alcohol, firearms, and more. You will need to also file an annual report that can be filed either online or in person. The filing fee every year is $138.75. There are deadlines for this, and if you miss those deadlines, you will have a cost of $400.
Final Word: How to Start An LLC In Florida
In this article, we’ve discussed how to start an LLC in Florida. It is a relatively simple process that can help you build a business that you can rely on and build in the state. While there are some expenses in the state, it is one of the most cost-effective and tax-friendly states in the US.