Are you planning to start an LLC in Florida? An LLC, short for “limited liability company,” is a business structure available in all states. Creating an LLC in Florida offers personal liability protection and access to specific state tax advantages. The process might seem complex, but don’t worry—we’ve got you covered. Read on to understand how to start an LLC in Florida. This guide aims to help you navigate the process of starting an LLC in Florida and provides additional resources to support your business’s success.
Setting up an LLC in Florida includes:
- Select an LLC name.
- Designate a registered agent.
- Draft and submit your articles of organization.
- Create your operating agreement.
- Acquire an EIN (Employer Identification Number).
What Is an LLC?
An LLC, or limited liability company, combines pass-through tax benefits with liability protection, making it a favored structure for new business owners. It avoids double taxation on profits by passing them through to owners personally.
Pros and Cons of Starting LLC in Florida
Florida offers a business-friendly environment, providing a solid foundation for growth. The state supports your company’s needs with top-ranked infrastructure, a skilled workforce, and global connectivity. Its favorable tax structure and competitive costs make planning for growth straightforward. Florida consistently ranks among the best states for business due to its pro-business policies and welcoming climate.
Forming an LLC in Florida offers benefits like personal asset protection, potential tax advantages, and enhanced credibility. However, it’s essential to consider both the advantages and disadvantages of this business structure.
Let’s examine the advantages and disadvantages of forming an LLC in Florida.
| Pros | Cons |
|---|---|
| Taxation flexibility | Members can only pay themselves wages if they opt for S-corporation taxation. |
| Less paperwork than setting up a C-corporation. | Annual renewal fees |
| Allows for an unlimited number of members to join. | Might have a franchise tax fee |
| Flow-through taxation reduces the issue of double taxation on profits. | Raising capital can be challenging |
| Limits member liability |
Steps to Start an LLC in Florida
Once you’ve chosen an LLC for your business and planned its setup, let’s look at starting a business or an LLC in Florida. LLCs fall under state regulations, so meeting all state requirements when filing is crucial. Non-compliance risks rejection of your LLC application by the Secretary of State.
Filing for a Florida LLC is simple and budget-friendly. While services exist to assist, doing it yourself is quite manageable.
Step 1: Select a Florida LLC name
The first step is to select a name for your LLC. Florida law restricts what you can choose, but these shouldn’t significantly limit your options.
- Avoid suggesting links to government agencies (e.g., State Department, CIA, FBI).
- Refrain from language implying illegal purposes (e.g., “Harry’s House of Hitmen”).
- Include “LLC,” “L.L.C.,” or “Limited Liability Company” (for professional limited liability companies, use “PLLC” or “chartered”).
- Certain terms like “bank,” “attorney,” “lawyer,” or “credit union” might require specific certifications or licenses.
Your name must be unique, standing out from existing Florida businesses. Use the state registry for a Florida business name search to ensure your chosen name isn’t yet taken.
Reserve Your LLC Name
To reserve your LLC name, submit a letter to the Secretary of State with your desired name, full name, and current address. Pay $25 to hold it for up to 120 days if available. Follow state rules: include “limited liability company” or its abbreviation, like “LLC” or “L.L.C.,” in the official name to avoid future issues.
Considerations When Naming Your Florida LLC
Previously, businesses aimed for names starting with “A” to secure top spots in the Yellow Pages. While that strategy has faded, modern businesses must consider how their LLC name influences marketing and sales beyond directory rankings.
Pick a memorable and easily spelled name. If they mistype it into a search engine, potential customers might miss your business.
Check the state’s registry for your LLC name and search for an available website domain resembling your chosen name. Reserve it promptly if it’s open. If your preferred LLC name lacks an available domain, consider inventive alternatives like “fixmyroofnow.com” or “RoofRepairTampaFlorida.com.”
Avoiding trademarked names is crucial. For instance, using a famous name like Walt Disney for your business, especially in Florida, isn’t permitted.
Applying for a Fictitious Business Name Registration
Register a fictitious company name you often use for operations. For instance, if your Florida LLC offers various home contractor services, you can create separate DBAs for roof repair, tree trimming, and house painting businesses.
Registering a Florida DBA, also known as a “trade name,” costs $50 and remains valid for five years. You can complete the process online or by mail.
Use a DBA to sidestep trademark issues. For instance, if you establish “McDonald’s Home Improvements, LLC,” registering “Up Top Roof Repair” as your DBA can prevent conflict with the fiercely protective burger chain.
Step 2: Designate a Registered Agent
Each LLC requires a registered agent, an individual or a legal service entity that handles official mail and communication for your business.
In Florida, an owner or employee can be the registered agent if they are a Florida resident, aged 18 and above, and have a physical address within the state. The “registered office” address can match your business’s address. However, an LLC can’t act as its own registered agent.
Opting as the Florida LLC’s registered agent can reduce expenses but comes with added duties. Another option is to pay a registered agent service for this role.
Step 3: Draft and Submit Your Articles of Organization
The crucial step in forming an LLC in Florida is submitting the articles of organization, which must contain:
- LLC’s principal place of business street and mailing address
- Registered agent’s name, address, and signature
- Managers’ names and addresses for member-managed LLCs
- Effective date (can be up to five days before or 90 days after filing)
- Signature of an authorized representative or member
- For foreign LLCs: Qualification of Foreign LLC form and a certificate of good standing from their original filing state
Mail the required document with a $125 fee to the Florida Division of Corporations in Tallahassee. Upon approval, you can operate as an LLC. For a quicker process, complete the Florida Limited Liability Company filing entirely online.
| Form to File | Limited Liability Company Articles of Organization |
| How to File | Online: Sunbiz Account Mail-in Address: New Filing Section Division of CorporationP.O. Box 6327Tallahassee, FL 32314 |
| Filing Fee | $125 (you can use a credit card online and check or money order for other options) |
Obtain a State Certificate
The state will notify you when your LLC formation documents are filed and approved. With this, you can get an Employer Identification Number (EIN), open a bank account, and secure LLC business licenses.
Your LLC’s address becomes public after filing, which could raise privacy concerns if you operate from home. Consider using a virtual address for LLC correspondence to protect your personal address.
Step 4: Create Your Operating Agreement
An LLC operating agreement defines company ownership and outlines business conduct in Florida. You can draft one using a template or have an LLC lawyer create it for you.
Though Florida doesn’t mandate an operating agreement, having one protects personal assets in legal or financial issues. Without it, Florida follows state law rather than the company’s best interests in disputes.
For instance, courts might order selling the business and dividing proceeds equally if a member leaves. An operating agreement clarifies members’ roles in financing and allows for structural changes.
Key details to include in your Florida LLC Operating Agreement:
- Income and debt distribution
- Financial and accounting specifics
- Management structure
- Adding new members
- Member transfers
Step 5: Acquire an EIN (Employer Identification Number)
After your articles of organization approval, you’ll need to get an EIN or Employer Identification Number from the IRS, known as a Federal Employer Identification Number or a Federal Tax Identification Number (FTIN). The process is straightforward, and once you apply online, your LLC receives this nine-digit number instantly.
This number acts like a Social Security number for your business, used for tax identification and annual reporting to the Secretary of State. Your EIN is necessary for:
- Opening an LLC business bank account
- Hiring employees
- Creating contracts with vendors
Creating an LLC in Florida is simple. With state-provided guides and template forms, paperwork becomes hassle-free. Utilize Florida’s resources and consider reputable LLC formation services for a smoother process.
LLC State Guides
Florida LLC Frequently Asked Questions
If you already have an LLC in another state and want to operate in Florida, you may need to register it as a “foreign LLC.” Submit a good standing certificate from your original filing state and a $125 fee. Usually, this registration isn’t mandatory but could offer tax benefits. However, foreign LLC registration is necessary if your out-of-state business has specific Florida-based operations like an office or store. Some exceptions exist, such as selling through independent contractors.
The initial step involves a mandatory state fee of $125 for filing your articles of organization. If you opt for a Florida Registered Agent, an extra $25 is incurred. You also need to pay a $130 filing fee for your annual report, which is due annually between January 1st and May 1st.
LLC processing time in Florida varies based on form completeness. Completed applications usually take 2 to 15 days. For exact durations, check the Division of Corporations website. Hand-delivering your application to the Tallahassee office speeds up processing, but Florida doesn’t provide other expedited services.
Starting an LLC in Florida requires payment—there’s a $100 fee and a $25 registered agent fee. Filing directly with the Division of Corporations bypasses the need for a third-party service, saving costs.
In Florida, owning an LLC doesn’t require being 18 or older. Unlike in other states, minors can own an LLC individually or jointly with an adult.
