Forming an LLC (Limited Liability Company) in Florida is easy and affordable. The following are few procedural steps on how to start an LLC in Florida. LLCs can be formed in two ways, domestic and/or foreign. If you are planning to set up an LLC in states other than Florida, visit How to Start an LLC.
On this page, you’ll learn about the following:
- Why an LLC in Florida
- How to Start a Florida LLC
- After Starting your Florida LLC
Why an LLC in Florida
If you are thinking of doing the same, then you should consider Florida LLC as a great option for starting a business. If you want to know why then here are some of its advantages.
Easy taxation passes through
Easy taxation means that the profit that is owned by the company is directly distributed to the members of the company, at all levels of people. Moreover, there are no taxes deducted from the account of the members. Other than this, a person can include all of this money in their federal income. In Florida, the profits of the LLC are not considered as income by the government.
On the other hand, if a person faces some losses, they can claim it with the federation. With the help of that, the tax amount, one has to pay can be lowered.
Flexibility in sharing the profits
The Florida Limited Liability Company rules need to be harmonized by the government. They have made the laws easy and flexible for the business owners so that they can complete all the formalities easily. This makes them easy to share profits and pay easy dividends to all the stockholders and stakeholders.
Formalities are very meager
It is fact that registering a new business comes up with tons of legal formalities. A bunch of paperwork, permissions, licenses, and so on are associated with it. But when it comes to starting an LLC in Florida, the formalities one needs to complete are very less compared to other neighboring states.
Can easily form subsidiaries
In case a business person is looking to increase their profits and expand their business, they need to form a subsidiary. It is not an easy task, but with the LLC in Florida, the formation of subsidiaries is not so difficult. One just needs to go through a little paperwork, and then they can start the process of their subsidiary formation easily. Moreover, in some states, there is double taxation implied in this case, but in LLC, they can save themselves from this issue and pass all the deduction processes.
How to Start a Florida LLC
Suppose you’re planning to invest in some profitable business or maybe about to set up your corporation in Florida. In that case, forming an LLC in Florida is the simplest option for you.
An LLC or a Limited Liability Company a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. This section gives you a step-by-step guide on How to Start an LLC in Florida.
Step 1: Decide a Name for Your LLC
If you are to start an LLC in Florida, the first thing you do is decide on a corporation or company name, and how to name your LLC may be tricky. Thus, you have the option to choose a name that complies with the Florida business naming requirements. It must also be easily searchable for potential clients. Here is a step-by-step guide to follow when naming your Florida LLC.
Why do you need a proper business name?
If you want your LLC to have special identification, your company name is essential. However, many people face lots of issues by avoiding focus on choosing a corporation name for their LLC business formation filings.
Because of this, here are some of the major benefits of choosing the best LLC corporate names.
- To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
- After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
- You can only get the EIN number when you have your name registration certificate with you.
What are the requirements when deciding a name for your LLC?
A name search is vital to make sure the name of your corporation is unique. Check the availability of your name with Business Entity Search on the Florida Secretary of State’s website. Reserve the name by completing the Name Reservation Request Form for Domestic Entities.
- Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
- You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
- As for a business website and your URL name, check if your name is still available for URL use with NameCheap.
Reserve a business URL
Even if you don’t have plans to set up a website today, it will help if you buy a URL to avoid others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website.
If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.
Step 2: Assign a Registered Agent in Florida
A registered agent, or business entity, is a person that will act or work on your behalf. This person or corporation will receive significant tax forms, legal documents, a notice of lawsuits, and other official government correspondence in Florida. Choosing Florida-registered agents for your LLC is required.
Make sure your registered agents are residents of Florida. It could also be a corporation. Here are the recommended agents and employees for you:
These five LLC formation services are recommended agents’ registered services as they are authorized to conduct business in Florida. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service because they have been in the business for years.
Step 3: File Articles of Organization in Florida
A Certificate of Name Reservation is needed to file Florida Articles of Organization, which costs $125. You need to make reports of this certificate with the Florida Secretary of State. You may file them online or by mail.
This Certificate of Formation is a legal document needed to form your corporation officially. It will indicate details about your LLC in Florida, like if it is a member-managed or managers-managed.
Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Florida LLC will offer.
How to File Online
Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county.
How to File by Mail
If you prefer filing real-life forms for your Indiana LLC registration, then you can download the Florida Limited Company Certificate of Formation. Read the form thoroughly and fill it out. It will have to fill, among others, your name, city, state, zip code, and signature.
Step 4: Create Your Florida LLC Operating Agreement
An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
Starting an LLC in Florida does not require you to have an operating agreement, but it is ideal to have one that contains all your details of business operation.
Step 5: Filing a Florida LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes. It is like a Social Security number dedicated to a corporation.
It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for tax filing and to determine tax classification options.
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
After Starting your Florida LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business account
- File Florida business permits & licenses
- Get liability for business insurance with coverage for employees
- File a Florida LLC annual report or biennial report
- Already existing LLCs that wish to operate in Florida must register as a foreign Florida LLC.
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Florida LLC Formation Review
Time needed: 1 hour and 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Florida. Click on the steps in this list to read the full detail.
- Name your Florida LLC
The first thing you must do is to choose a company name, which should include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
- Choose a registered agent
In Florida, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
- File a formation certificate
Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create operating agreement
An operating agreement is not a strict requirement but something encouraged when you start an LLC.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.
For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.
The cost to form an LLC varies per state.
Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here.
This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.”
>Do not include words that could create confusion between your LLC and any government business.
>Words like ‘bank, attorney, university’ are restricted as well.
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.
Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.
As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website.
No. Never mail these documents or payments to the Secretary of State directly.
The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing and managing federal and state taxes
>Hiring employees or agents
You are not required a Social Security number when getting an EIN You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
International EIN applicants do not need an SSN to get an EIN.