How to Start an LLC in Florida

How to Form an LLC in Florida | Complete Guide
A Step-by-Step Guide

How to Form an LLC in Florida

Forming an LLC in Florida is a simple process, providing an excellent solution for entrepreneurs wanting liability protection and flexibility. If you're an entrepreneur who wants to start anew or grow your existing business, creating an LLC in Florida guarantees personal asset protection and legal benefits. Follow our comprehensive guide to ensure a smooth and efficient process.

Key Benefits

1

Liability Protection

An LLC provides its owners with liability protection, safeguarding personal assets from business debts and legal liabilities.

2

Tax Flexibility

Enjoy pass-through taxation where profits and losses are taxed on the owners' individual tax returns, avoiding double taxation.

3

Simple Management

Operate your business with little administrative hassle while maintaining the professional credibility and legal protections of a formal business entity.

Formation Process

Select a Unique Name for Your LLC

The first step in creating your Florida LLC is selecting a name. The name should be unique and not taken by another business entity within the state. To confirm your preferred name is available, you can conduct a name search on the Florida Division of Corporations website.

  • Required Words: The name should contain "Limited Liability Company," "LLC," or "L.L.C."
  • Restricted Words: The name cannot be too close to any government agency name, like "FBI," "FDA," "Florida Department of Revenue," or "Florida Police."
  • Uniqueness: Ensure the name is not already in use by another registered Florida business.
  • Domain Name: Reserve a domain name that is in relation to your LLC to protect your online presence, even if you do not intend to open a website immediately.

Select Your Florida LLC Registered Agent

Every LLC within Florida must include a registered agent. A registered agent receives formal documents and lawful notices on the LLC's behalf.

Self-Appointment

You can name yourself, another owner of your LLC, or utilize a professional registered agent service. Appointing a service may be more convenient, but it guarantees that there is always someone around to accept critical documents in business hours.

Florida Requirements

The agent must reside at a Florida address. The agent should be capable of accepting legal notices in standard business hours.

Best Registered Agent Services for Florida

ZenBusiness

ZenBusiness provides a simple, effective, and budget-friendly method of creating your LLC and staying compliant. It costs $199 annually for registered agent services and includes an easy-to-use dashboard to store your business paperwork.

  • Quick and dependable LLC formation and compliance services
  • Very good customer reviews
  • Offers access to all business paperwork online

Disadvantages: Does not service nonprofit organizations.

Northwest Registered Agent

With more than 20 years of industry experience, Northwest Registered Agent provides a high-end registered agent service for $125 per year. They are privacy-conscious and security-focused while also keeping it convenient to keep track of your LLC documents in an online portal.

  • Secure and reliable handling of documents
  • A+ rating with the Better Business Bureau
  • Used in all 50 states

Disadvantages: More costly incorporation fees than some other providers.

File Your Articles of Organization

The second step is submitting your Articles of Organization to the Florida Division of Corporations. This document formally forms your LLC and contains basic information like your LLC's name, address, and registered agent.

Online Filing

This is the fastest and most convenient way to file your Articles of Organization. The online filing fee is $70.

Mail Filing

To file by mail, the same fee of $70 applies, and the processing time is longer than for online filing.

Expedited Processing Options

  • Same-day processing: Extra $750
  • 4-hour processing: Extra $500
  • 24-hour processing: Extra $350

Typical Processing Time: When filed online or by mail, processing time is normally five business days. Expedited services can do it in as little as 4 hours.

After Forming Your LLC in Florida

After your LLC has been successfully created, there are several important follow-up steps to take in order to have your company set up to succeed:

  • Separate Your Business and Personal Finances: Keeping your LLC's finances separate from your personal finances is an absolute must. Open a business bank account to achieve this, so that your personal assets will be safe if your LLC gets into some kind of legal or financial difficulty.
  • Get a Business Accountant: An accountant ensures you remain tax-compliant, take care of bookkeeping, and steer clear of expensive errors.
  • Consider Business Insurance: Small businesses can also benefit from business insurance, including general liability and workers' compensation coverage, to cover against possible risks and liabilities.
  • File Annual Reports: Florida LLCs must file an annual report to keep themselves in active status. The annual report costs $138.75 and must be filed between January 1st and May 1st of every year.
  • Create an Operating Agreement: While the state of Florida doesn't require an operating agreement, it's strongly advised. This agreement describes the management and operating practices of your LLC and can avoid disputes in the long run.

After Formation

Once your LLC is established, take these important steps to maintain good standing and protect your business:

Open a Business Bank Account

Keeping your LLC's finances separate from your personal finances is an absolute must. Open a business bank account to achieve this, so that your personal assets will be safe if your LLC gets into some kind of legal or financial difficulty.

Hire a Business Accountant

An accountant ensures you remain tax-compliant, take care of bookkeeping, and steer clear of expensive errors. This is essential for managing your LLC's financial health.

Get Business Insurance

Small businesses can also benefit from business insurance, including general liability and workers' compensation coverage, to cover against possible risks and liabilities. This provides an additional layer of protection.

File Annual Reports

Florida LLCs must file an annual report to keep themselves in active status. The annual report costs $138.75 and must be filed between January 1st and May 1st of every year. Not filing the report can result in penalties or even dissolution of your LLC.

FAQs

How much does it cost to start an LLC in Florida?

The cost of filing to create an LLC in Florida is $70. But, if you wish to have your application processed speedily, there is a considerably higher cost for this, the same-day filing costing an additional $750.

Do I need a Trade Name (DBA) for my LLC in Florida?

You don't need a DBA (Doing Business As) name unless you wish for your LLC to be known by a name other than its actual name. If you intend to have a DBA, you may apply for a "Fictitious Name Registration" for $50.

How long does Florida take to process the Articles of Organization?

Regular processing is approximately 5 business days, but you can have it expedited through paying extra charges: same-day processing for $750, 4-hour processing for $500, or 24-hour processing for $350.

Can I be my own registered agent in Florida?

Yes, you can be your own registered agent in Florida, as long as you have a Florida physical address and are present during business hours to accept legal documents. Many business owners, however, use a professional service to spare the trouble.

Do I need an EIN for my Florida LLC?

If your LLC has more than one member or will have employees, you'll need to apply for an Employer Identification Number (EIN) from the IRS. Even single-member LLCs can be helped by having an EIN to keep business and personal finances separate.

Do you need an operating agreement for an LLC in Florida?

While the state of Florida doesn't require an operating agreement, it's strongly advised. This agreement describes the management and operating practices of your LLC and can avoid disputes in the long run, making operations run more smoothly.

Will my Florida LLC have any continuing filing obligations?

Yes, Florida LLCs must file an annual report to keep themselves in active status. The annual report costs $138.75 and must be filed between January 1st and May 1st of every year. Not filing the report can result in penalties or even dissolution of your LLC.

Ready to Start Your Florida LLC?

Take the first step toward establishing your business with the protection and benefits of an LLC structure. Our comprehensive guide makes the process simple and straightforward.

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