Florida LLC Costs
An LLC, also known as a limited liability company, provides business owners with liability protection, specific tax advantages, and an easily workable management structure. Some business owners and entrepreneurs think that forming an LLC in Florida is that it is a time-consuming and expensive process. But, it is an accessible and affordable process that is cost-effective over time.
Recommended LLC Services
Costs to start an LLC in Florida
LLC Articles of Organization fee ($125)
- You will file your Articles of Organization with the Florida Division of Corporations.
- The Florida filing fee for your Articles of Organization is $125.
- Florida does offer a 24-hour expedited process for an additional $100.
Florida annual report fee ($138.75)
- LLCs in Florida must file an annual report with the Secretary of State.
- The Florida filing fee is $138.75 and must be filed annually by May 1.
- The late fee for failing to file your annual report is $400 and must be up to date to remain in good standing.
Registered agent fee (varies between $50 and $300)
- You can appoint yourself as your registered agent in Florida.
- However, business professionals recommend you appoint an experienced registered agent service to avoid late fees and missed deadlines.
Fees to form a foreign LLC in Florida ($125)
- If you have an existing LLC in another state, you must register it as a foreign LLC in Florida.
- The fee for registering a limited liability company as a Florida foreign LLC is $125.
- You must complete and submit the Foreign Limited Liability Company application for Authorization to Transact Business in Florida to the Department of State Division of Corporations.
DBA filing fees ($50)
- The acronym DBA stands for ‘doing business as.’ A DBA name is a registered name that an individual or company utilizes to conduct business that is not its legal name.
- You will complete and submit the Application for Registration of Fictitious Name and submit it to the Florida Department of State.
- The DBA processing fee in Florida is $50.
Cost of certified document copies ($30)
- You can order certified copies of your Florida LLC documents using the Division of Corporations website.
- The cost for certified copies of your LLC documents is $30 in Florida.
Florida Certificate of Status ($5)
- The Florida Certificate of Status is also known as a Certificate of Good Standing and is often required by lending institutions and banks.
- You will order the certificate through the Florida Division of Corporations website.
- The cost for your Florida Certificate of Good Standing is $5.
Steps to start an LLC in Florida
Choose a business name in Florida
When choosing a Florida LLC name, you must consider a few things.
- Your LLC name must be unique and available in Florida.
- It must meet the state LLC name requirements and include the phrase limited liability company, or a version of the acronym (LLC, L.L.C.)
- When naming your LLC, It is a good idea to check for web domain availability.
You will use the Florida Division of Corporations Fictitious Name Search to check for your LLC’s name availability.
You can find a complete list of Florida LLC naming restrictions.
Florida does not offer name reservation services.
Appoint a Florida registered agent
Florida requires you to choose a registered agent when forming an LLC in the state.
The cost for a Florida registered agent varies depending on the route you choose to take.
A registered agent in Florida is an individual or business entity that receives tax forms, legal documents, lawsuit notices, service of process, and other official government communications on behalf of a sole proprietorship, corporation, or LLC.
Any registered agent you choose must be a Florida resident or a registered agent service must meet specific requirements to be authorized to conduct business in the state.
- 18 years of age or older
- A service or agent must have a physical address in Florida.
- The registered agent has to be available during regular business hours. It is so they are able to receive service of process.
In the state of Florida, you can be your own registered agent.
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness offers a stand-alone registered agent service. The price is $99 per year.
- Total Out The Door Florida LLC Formation Package – $47 a month and includes:
- Florida State Fee
- Florida Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
- Economy – $79 plus state filing fees
- Standard – $329 plus state filing fees
- Express Gold – $349 plus state filing fees
File Articles of Organization
You will submit your Florida Limited Liability Company‘s Articles of Organization to the Divison of Corporations.
You will file online with Florida Sunbiz.
Or, you can complete the Florida Articles of Organization of a Limited liability Company and submit it by mail.
The filing fee for your Articles of Organization is $125 in Florida.
The New Filing Form will ask for specific information about your LLC.
- LLC name and contact information
- Address of principal office
- Mailing address
- Registered agent information
State Corporation Commission
P.O. Box 1197
Richmond, VA 23218-1197
Get a Florida LLC EIN
An Employer Identification Number, or EIN, is also called a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
An EIN is a nine-digit number that the Internal Revenue Service (IRS) gives businesses. The Federal Government assigns the number for free.
Your EIN helps to identify you for income tax purposes and acts as a Social Security number for your business.
The Internal Revenue Service mandates that you obtain an EIN for your Florida LLC if you convert a sole proprietorship into an LLC.
The process is simple and can be done online using the IRS website.
Business banking for a Florida LLC
Keeping your personal and business bank accounts separate protects your assets and credit scores.
Banks and financial institutions will require a copy of your LLC’s Articles of Organization, EIN, operating agreement, and two types of ID.
Most business banking accounts are free and do not come with any additional costs and fees.
Business attorney fees in Florida
Business attorneys are there to help guide an LLC through the Florida LLC formation process and assist with all types of business-related issues.
Most business lawyers do offer free first-time consultations for new businesses.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a professional business attorney will cost $300 per hour.
LLC taxes in Florida
In Florida, LLCs are pass-through entities. It means that the LLC members must report income and losses on their personal taxes rather than the LLC. The member or members will file a tax return with the Florida Department of Revenue.
- The State of Florida does not impose an entity or special franchise tax.
- Your Florida LLC will also have various state income taxes, such as incoming withholding tax.
- You will submit a sales tax return every year in Florida. Consulting a business attorney or tax account helps to avoid high tax penalties and urgent deadlines.
- For companies that sell physical products in Florida, you will need to register for a seller‘s permit with the Florida Department of Revenue. Florida’s sales business tax rate is 6.00%, and the maximum county sales tax rate is %2.50.
- LLCs with employees must register for Reemployment Tax. In Florida, it is a type of unemployment tax.
- LLCs must report income to the IRS annually. You must file either Form 1065 Partnership Return (multi-member LLCs ) or Form 1040 Schedule C (single-member LLCs).
State and federal taxes are complicated and might be worth the hourly consultation fee.
Business licenses and permits in Florida
Permits and business licenses will depend on the location of your business and the type of business.
Every Florida city, county, or town has different rules for permits and licenses.
You will want to contact your local Department of Business and Professional Regulation (DBPR) or the Department of Agriculture and Consumer Services (DACS) to inquire about the process, price, and business hours.
For seller permits, you will contact the Florida Department of Revenue.
You may find that a Florida business document or form requires a notarization by a notary public.
According to Florida state law, a notary public cannot charge more than $10 for notorizing documents.
Benefits of a Florida LLC
- When you form an LLC in Florida, it simplifies business banking. Most lenders and banks require a business owner to open a separate business banking account from their personal banking account. It reduces personal liability in terms of business debt and potential lawsuits.
- LLCs have different compliance requirements than incorporations. Corporations have shareholders and stockholders that they answer to when making decisions. LLCs do not have that same requirement.
- LLC formation in Florida helps you to avoid being subject to double taxation. Other business structures such as C-corporations are double-taxed while LLCs are not.
- You have the choice to be taxed as a pass-through entity as an LLC. In Florida, LLCs are only taxed once from members’ tax returns.
- LLCs in Florida are allowed to have subsidiaries without any restrictions. Other business structures like S-Corporations have state-mandated restrictions.
- Small businesses gain credibility as LLCs. An LLC is a more formal business structure than a sole proprietorship or partnership. It brings better credibility than a sole proprietorship or partnership.
How long does it take to register an LLC in Florida?
If you file your Articles of Organization by mail, it will take 3 to 4 weeks. It includes the time that it takes to return the certified documents to you.
Online LLC filings through Florida Sunbiz take 1 to 2 business days. Florida does not offer any expedited services and processes the registrations as they come in.
How do I dissolve my Florida LLC?
You will dissolve your Florida LLC Florida Division of Corporations Registration Section.
You can file the Florida LLC Articles of Dissolution online using Florida Sunbiz. Or, you can complete and submit the Florida Articles of Dissolution form by mail.
The fee to dissolve your LLC is $25.
How do I avoid automatic dissolution in Florida?
In Florida, if you miss one state filing, you are at risk for automatic dissolution. It often takes more than one missed deadline. But, if the state begins the dissolution process you may lose your liability protection.
Do I have to have a Florida LLC operating agreement?
Florida law does not require you to have an LLC operating agreement.
However, most LLCs choose to draw one up because it outlines management structure and sets up common rules that all members agree upon. An operating agreement can be oral or written, as long as it is in the company files.
Why should I form a Florida LLC?
Entrepreneurs, sole proprietors, and partnerships all benefit from forming an LLC in the long run. Forming an LLC in Florida limits your personal liability when it comes to business debts and future lawsuits.
When you form a Florida Limited Liability company, you are giving yourself flexibility in management and tax breaks you would not get with any other business structure.
Are there publication requirements in Florida?
Some states require LLCs to publish a public announcement. The state of Florida does not mandate that you publicize the formation of your LLC.
However, publishing a public notice for your new company is always a good idea. It establishes your brand and starts your LLC on the right foot with the public.
Can I take money out of my LLC in Florida?
You do not receive a salary or wages when you’re a single-member LLC. Instead, you pay yourself for the profits of your company. The business practice is called an owner’s draw.
In Florida, the owner’s draw is legal. For example, you can write yourself a check and transfer that money from your LLC to your personal bank account.
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