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The Sunshine State offers easy access to the East Coast and is a gateway to Latin America, making it a strategic location to start or grow a business. Florida also provides one of the more favorablebusiness tax climates in the U.S., withno personal income tax and a moderate 5.5% corporate tax. If you're wondering how to start an LLC in Florida, here's what you need to know.
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By default, LLCs are pass-through entities, meaning each member (not the LLC itself) reports their share of LLC-related income on their state and federal income tax returns. Florida doesn't impose a state income tax, so members pay only federal income taxes.
LLC members in Florida (and elsewhere) pay the 15.3% federal self-employment tax, including 12.4% for Social Security and 2.9% for Medicare.
An LLC classified as a corporation or partnership for Florida and federal income tax purposesis required to file a Florida corporate income/franchise tax return and pay the 5.5% corporate tax.
A Florida LLC name must be "distinguishable on the records of the Department of State" and include limited liability company, LLC, or L.L.C. You can search available names on the Florida Division of Corporations website. If you need more time to file your articles or organization, you can reserve a business name for 120 days by submitting a request and a $25 fee to the Florida Secretary of State.
All Florida LLCs must maintain aregistered agent and registered office to accept legal correspondence on behalf of the LLC. An individual within an LLC and any business entity with an active Florida filing or registration can serve as a registered agent, though an LLC can't be its own one.
Once you select a business name and registered agent, you'll file official articles of organization paperwork to form your LLC in Florida. You'll provide details about your LLC, registered agent, members, and more. You can file online or by mail. The filing fee is $125, including $100 to file the articles of organization and a $25 registered agent fee.
There are a number of additional steps you may need—or want—to take, depending on the type of business you created and Florida regulations. Read this list carefully and see which requirements apply to you.
Most companies in Florida pay state business taxes. You'll need to register with the Florida Department of Revenue to file and pay your corporate income tax and other applicable taxes. Most businesses also pay local taxes. Contact your county's tax collector for more information.
Many industriesrequire a license from the State of Florida. The Department of Business & Professional Regulation (DBPR) licenses accountants, home inspectors, electrical contractors, and dozens of other professions. The Department of Agriculture and Consumer Services (DACS) handles licensing for pawn shops, private security, pest control, and more. Check the state agency directory to confirm whether your LLC needs licensing.
Most LLCs in Florida need an Employer Identification Number (EIN) for federal tax purposes.
You'll also need an EIN to open a business bank account (such as Found) or apply for credit for your LLC. You can get an EIN for free from the IRS.
LLCs don't need an operating agreement in Florida. However, it can be wise to have one. An operating agreement serves as a legal blueprint for your LLC and establishes the members' rights and responsibilities.
An annual report updates or confirms the Division of Corporations' records. You'll need to file one yearly for your LLC to maintain an active status with the Florida Department of State. The report is due by May 1. The filing fee is $138.75 (plus a $400 late fee if you file after the deadline).
LLCs across the nation are subject to a new rule. As of Jan. 1, 2024, all LLCs must file a Beneficial Ownership Information (BOI) report with the U.S. Financial Crimes Enforcement Network (FinCEN). You have until Jan. 1, 2025 to file an initial BOI report if you started your LLC before Jan. 1, 2024. Otherwise, you have 90 days to file if you form the LLC in 2024—or 30 days if you start an LLC in 2025 or beyond.
Many industries in Florida require a specific license to operate in the state. Remember to check with theDepartment of Business & Professional Regulation (DBPR),Department ofAgriculture and Consumer Services (DACS), and the state agency directory to check if your LLC needs a license.
It costs $100 to filearticles of organization in Florida, plus $25 to designate a registered agent. You'll pay more if you hire a professional registered agent or use an LLC filing service like LegalZoom, which helps form your LLC, prepares your documents, and offers guidance from attorneys. Once your LLC is formed, you'll pay $138.75 each time you file your annual report (a $400 late fee applies if you miss the May 1 filing deadline).
The Small Business Administration (SBA) and Service Corps of Retired Executives (SCORE) offer helpful tools no matter where your LLC is located. For Florida-specific guidance, check out the following resources:
Setting up an LLC in Florida is a fairly straightforward process. The state offers plenty of resources to help you along the way. Florida also has one of the most business friendly tax climates in the U.S. There is no personal income tax and the corporate tax is a moderate 5.5%.
To form an LLC in Florida, you'll choose a business name, appoint a registered agent, file your articles of organization, and get an Employer Identification Number (EIN) from the IRS. Consider hiring an LLC formation service for help or guidance along the way.
Florida offers a favorable business tax climate and numerous resources to help small businesses thrive, making it a worthy place to start an LLC. Still, the best state to form an LLC is generally the one where you live.
Florida processes articles of organizationas they're received. Still, it generally takesfive business days if youe-file or 12 business days (plus mail time) to file by mail. You can view current processing times on the Florida Department of State's website. Expedited LLC service is not available.
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