The Complete Guide to Starting an LLC in Florida

To set up an LLC in Florida, you’ll need to go through the Department of State’s Division of Corporations. At minimum, it will cost you $125, which is the fee to file your articles of organization and name a registered agent.

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Limited liability companies (LLCs) have been the most popular business structure in Florida since 2014, according to the state’s Division of Corporations . LLCs are easy to start and maintain, come with tax flexibility and offer legal protection for their owners. You can form an LLC in Florida in several simple steps and for only $125.

How to start an LLC in Florida

To start a business in Florida, you need to go through the Florida Department of State’s Division of Corporations. The Division of Corporations sets the rules, requirements and costs to form an LLC in Florida. You’ll also need to follow their rules if you want to operate your out-of-state LLC in Florida.

Step 1: Choose a name for your Florida LLC

The first step in forming an LLC in Florida is to choose a name for your business. Like other states, Florida law requires you to choose a name that’s different from the names of other businesses. This requirement is designed to prevent confusion among customers and members of the public.
Your business name must end with “Limited Liability Company,” “LLC” or “L.L.C.” Licensed professionals in Florida can opt to form a professional limited liability company (PLLC). If you do, the name should end with “Professional Limited Liability Company,” “PLLC” or “P.L.L.C.” You can’t use certain words in your LLC’s name, such as those referencing banks, financial institutions or agencies of the federal government.
Before establishing your business, it’s important to check if your business name is available. You can do a preliminary name search on the Division of Corporations’ business name registry. Companies that use a trade name other than the entity’s legal name must file for a fictitious business name, also known as a DBA or “doing business as" name. For example, say your business’s legal name is Joan and Day, LLC, but you operate as “Joan’s Landscaping.” You would need to register the latter name as a fictitious business name with the Division of Corporations.

Step 2: Select a registered agent in Florida

Any business that operates in Florida must name a registered agent that will accept legal and official mail on the business’s behalf. A registered agent for a Florida LLC can be an individual or a company. They will notify you if your business is sued or receives a government notice.
When forming an LLC in Florida, an individual registered agent must be a Florida resident. A company that serves as the registered agent must be a business entity authorized to operate in Florida. The registered agent needs to have a physical address in Florida (P.O. boxes are not enough). Your business can’t serve as its own registered agent, but a member or manager of the LLC can (including you). Many businesses find it convenient to use an online legal service, such as Bizee, to serve as their registered agent.

Step 3: Obtain a Florida business license

Businesses in several industries need a business license to operate in Florida. The agency that issues your license depends on your business industry. The Department of Business and Professional Regulation and The Department of Agriculture and Consumer Services are the two main licensing agencies. The Florida Department of State website links to licensing authorities by occupation, so you can check what licenses you may need.
Any business in Florida that sells taxable goods or services must also register with the Florida Department of Revenue. You must periodically file sales tax returns. The filing deadlines for these returns vary based on the amount of sales tax your business collects annually.

Step 4: File your articles of organization

The next step in forming an LLC in Florida — and the most important one — is to file your articles of organization with the Division of Corporations. Your articles of organization officially establish your authority to operate as an LLC in Florida. You can access a fillable PDF of the articles of organization, or you can e-file for faster processing. The filing fee for the articles of organization is $100. You must also pay $25 to name a registered agent.
The Florida LLC articles of organization require the following information:
  • The LLC’s name and principal place of business.
  • Registered agent’s name and Florida street address (P.O. Boxes are not acceptable).
  • Registered agent’s signature.
  • Names and addresses of the LLC’s members.
  • Name and address of the LLC’s manager if manager-managed.
  • Effective date of the LLC, if not the date of filing (optional).
  • Signature of the member or authorized individual completing the form.
Foreign LLCs, which are LLCs that are formed in another state but want to operate in Florida, must fill out a different form: Qualification of Foreign LLC. This form also has a $125 filing fee. You should include a certificate of good standing from your home state along with the form.
The state of Florida currently takes about two weeks to process articles that are filed online. Mailed in articles may take up to three weeks to process. After the state approves your filing, you can download a copy of your accepted articles and store them with your other business records. If the state rejects your articles for some reason, you’ll get an opportunity to make corrections.

Step 5: Draft an LLC operating agreement

According to state law, Florida LLCs do not need to have an operating agreement. However, we recommend that the members of your LLC adopt a written operating agreement. The operating agreement facilitates your LLC’s daily operations and prevents disagreements among members.
At a minimum, ensure that your Florida LLC operating agreement includes the following information:
  • The purpose of the LLC, including products or services offered.
  • The names and addresses of the members (and the manager, if there is one).
  • Each member’s contributions of value to the LLC.
  • Each member’s ownership stake in the company, voting rights and profit share.
  • The procedure for admitting new members.
  • The procedure for electing a manager if the LLC is manager-managed.
  • The LLC’s meeting schedule and voting procedures.
  • Dissolution terms and procedures.
Creating this document can be confusing for new business owners, but online legal services or your business attorney can help with this process, as well. After creating your LLC operating agreement, make sure all members have an opportunity to review and sign it. Then, store the agreement with other important business documents.

Maintaining good standing for your Florida LLC

Once you’ve formed your Florida LLC, you’ll need to take several more steps to ensure you’re operating legally and in compliance with state regulations.

Choose how you want to be taxed

As an LLC, you have the option to be taxed as a pass-through entity or a corporation. If you elect to be taxed as a pass-through entity, your business will not be responsible for filing separate tax forms. Instead, each member of the LLC will report business earnings and losses on their personal tax returns.
If you opt to be taxed as a corporation, your LLC will be responsible for federal corporate taxes (Florida has no state income tax) and will need to file separate business taxes.
At the federal level, LLC members must pay 15.3% in self-employment taxes to cover social security and Medicare obligations. If you have employees, you must withhold federal social security and Medicare taxes from your employees and pay the employer's share of these taxes. There’s also a federal unemployment tax that you’ll need to pay in addition to Florida state unemployment taxes (now called reemployment tax).

Apply for an EIN

Florida LLCs must apply for an employer identification number (EIN) if they:
  • Have employees.
  • Have multiple owners.
  • Are taxed as corporations.
The IRS will ask for your EIN when you file federal business taxes. Additionally, your LLC will need an EIN when opening a business credit card or business checking account in Florida. You’ll also need an EIN if you apply for business loans in Florida or anywhere else.

Comply with Florida employer obligations

Florida LLCs with employees have some additional obligations, including:
  • Employee reporting. Under state and federal law, employers should report new employees within 20 days of their hire date to the Florida Department of Revenue.
  • Paying unemployment taxes. New Florida employers must pay a payroll tax of 2.7% to cover state unemployment insurance, which applies to the first $7,000 in wages. Established employers will pay a lower or higher rate depending on the number of benefits their employees claim, plus their total payroll.
  • Purchasing workers' compensation insurance. In most industries in Florida, employers must buy workers' compensation coverage upon hiring their fourth employee. LLC members count as employees for these purposes. You may need other types of LLC insurance, too.
A business attorney who specializes in Florida employment law can help you stay in compliance.

File your annual report

Florida is one of a handful of states that doesn’t charge a state income tax. This means that owners of a Florida LLC don’t have to pay any state income taxes on their share of the business’s profits. This can be a big advantage for those forming an LLC in Florida.
The state of Florida does require LLCs to e-file an annual report. The purpose of the report is to update the business information on file with the Division of Corporations. It’s due between January 1 and May 1 of each year to avoid late fees. If not filed by the third Friday in September, your LLC could lose the authority to operate in Florida. The report should be accompanied by a filing fee, which is currently $138.75.

How much does an LLC cost in Florida?

The costs of setting up your LLC in Florida will vary depending on the services your business requires. At a minimum, you can expect to pay $125 to file the formation paperwork.
  • $100 for Articles of Organization. 
  • $25 for a Registered Agent Designation. 
  • $25 for a Name Reservation. 
  • $50 for a Fictitious Name Registration. 
  • $25 for Articles of Correction.  
  • $25 for a Change of Registered Agent.  
When deciding whether to form an LLC in Florida, keep other types of business entities in mind as well. It’s easiest and least expensive to form a sole proprietorship or partnership, though they don’t offer personal liability protection. If you’re planning to fundraise from investors, consider a C corporation or S corporation, which gives you the ability to issue stock.
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