Forming an LLC in Florida
In this article, we discuss in detail the costs of forming an llc in Florida, how you can form your company at the most affordable price, and the steps you need to take.
Many people know Florida primarily as a state to go to for vacations and leisure, but Florida is also a state with business potential for entrepreneurs. Florida is home to 2.5 million small businesses, including in the tourism, agriculture and science sectors.
LLCs have become the most popular business structure in Florida. Easy to maintain along with tax flexibility, flexible structured LLCs also provide legal protection for their owners.
The filing fee for LLC formation in the state of Florida is $125. LLC companies formed in Florida must pay an annual filing fee (franchise tax) of $139 to this state every subsequent year. These annual expenses can be said to be quite low for Florida LLC compared to other states. The first step in forming an LLC in Florida is choosing a name for your new business. Like other states, Florida law requires you to choose a name for your LLC that is different from the names of other businesses registered with the Corporations Division. It is an important detail to note that there is no name conflict with other LLC companies formed in the state.
Costs
LLC Company Formation Prices
| Service | Price | One-Time Payment | Annual Payment |
| Fee to be Paid to the State During LLC Company Formment | 125$ | ✔ | – |
| Annual Filing (Franchise Tax) | 139$ | – | ✔ |
| Phone Number $2/Month | 20$ | – | ✔ |
| Total: | 125$ | 159$ |
Registered Agent Selection
When you decide to form an LLC in Usa, you have to get the service of a Registered Agent. These organizations are authorized by the state. There are many companies that do this job and each agency offers different prices and services.
Below is a list of the most formed and reliable ones. You can also read a review of all of them by clicking on them.
Agency List
Northwest ($39, Address included) *Recommended
Inc Authority (Free)
MyCompanyWorks ($79)
CorpNet ($79)
the full list and detailed review page of Registered Agent companies that establish LLCs from this link .
Additional Costs
* EIN is available free of charge through the IRS. You can fill out a form called SS4 yourself and fax it to the IRS. There is a detailed explanation in this article . If you wish, registered agents can obtain the EIN for you during installation for a fee, and you can add the service to the installation for an extra fee.
** Company setup fee varies depending on the Registered Agent company.
*** In America, the virtual address is not included in most Registered Agent packages. When you receive service through Northwest Registered Agent, the address is included in the package and you do not have to pay an extra annual address fee. If you want to establish your company in another agency province other than Northwest, this company or there are different economic solutions in the article Companies Providing Virtual Addresses in America
How to Form an LLC in Florida? Steps
You can form a remote LLC online in the state of Florida. To set up, you need a registered agent, a US mailing address and a phone number with a US area code. Other details are below. (Note: If you are going to form your company with Northwest Registered Agent, you do not need to obtain a separate business mailing address. Northwest allows you to use its addresses as your business address when forming your company.
- Determine Your Company Name: First, you must determine the name of your LLC company. There should be no conflicts with company names already in the state database. So do a search on the state website Choosing a Name for an LLC for name rules .
- Get a Domain Name for Your Company: Check if the website domain name you will create for the business name you choose has been registered before. With Namecheap you can quickly register an llc domain name so that no one else can get and use your domain name in the future.
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- Get a Phone Number with an American Area Code: Zadarma for the virtual number. It has the ability to receive SMS and mobile application support. There is a monthly fee of $2. Zadarma from this link and start using it by installing their mobile application.
- Choose a Registered Agent: Choose a Registered Agent to set up your company and keep it active. There is a lot of information and pricing on the review page here
- Prepare an Operating Agreement: This is an operating agreement that determines the management style and rules of the company. It is not required to be created in many states, and it is not required to create one in the state of Florida. Although the state does not require it, it is recommended to create it, but you do not need to mail this contract to the state, it is enough to keep the contract you have prepared and signed. Northwest this operating agreement document for you free of charge during company setup. IncAuthority, this agreement is included with an $89 add-on. If you do not want to pay, you can create one yourself for free. Details and how to do it in this article .
The approval period for the LLC company is between 5-6 days in the state of Florida. Since state registration processes are online, speed depends on the registration agency, so sometimes the process can be completed sooner. However, if you want faster installation and are in a hurry, you can shorten the process by paying extra to the Registered Agent.
After the installation process is completed, your registered representative agency will inform you via e-mail and deliver the company formation (setup) documents digitally. No passport or ID is required during the LLC company formation phase in Florida.
What happens after your LLC company is approved in the state of Florida?
- Once the company is formed, your agency will deliver your company formation document digitally. You can ask your agency to mail the original signed copies for an extra fee during the installation phase.
- Once the company is incorporated and you receive the documents (digitally), obtain a Federal Identification Number (EIN) from the IRS. Without EIN, you cannot open a bank account, register with payment systems, or engage in commercial activities. If you want an EIN, you can get it from the agency by paying an extra fee during the company establishment phase, or you can fill out the SS4 form yourself and fax it to the IRS. the guide here .
- To maintain the health of your LLC after formment, pay state tax (Franchise Tax) of $139 and registered agent fees every year.
State Requirements and Taxes
Federal Taxes: As previously mentioned, single-member LLCs qualify as disregarded entities unless otherwise noted, so they are filed on an individual basis unless you elect to be taxed as a corporation. This means that LLCs do not pay income taxes directly to the federal government. In this case, company owners indicate their business income and losses in their personal statements. LLCs are flexible in their tax structure; you can choose to be taxed like a corporation if you wish. In this case, you will need to submit a separate corporate tax return.
State: If you have a company in the state of Florida, you are lucky because there is no state income tax in Florida. If LLCs are formed and elect to be taxed as single-member, personal income tax does not apply. If the LLC elects to be taxed as a corporation after formation, the tax rate is 5.5%.
Sales Tax: There is a sales tax as a local tax in the state. If you are selling to the people of Florida, the limits , you must collect the sales tax and return it back to the state. The sales tax rate in Florida 6% . Florida charges a use tax on products that are in use at your business and for which you do not pay sales tax. more about sales and use taxes here. If you plan to regularly deliver out of state and maintain a business presence outside of the state, you may also need to register for taxes in those states. Learn more about this here .
Local Requirements: Depending on your business's location within Florida, you may also be required to pay some local taxes. For example, some cities in Florida charge excess sales taxes or tourism taxes. more about additional local taxes here . this link to search for tax rates by address .
Business Licenses and Registrations
LLCs in the state of Florida generally do not require business license However, Florida may require licenses required by the federal government for certain professions, including agriculture, aviation and more. You can review the Small Business Association documents for industries that require licensing in Florida
Florida has the licenses and permits required for businesses in certain industries. These professions range from real estate to archeology to cosmetology. Florida's licensing-requiring professions to find out which licenses you need .
There is no statewide business license because licenses require you to register with your county, city, and local government office and obtain a license from them. For more details, at this link .
For more information about taxes, you can check out the article Taxation in America
Annual Reporting for Florida LLCs
Florida requires all LLCs to file an annual report. You can file your annual report ($139) online here Note that in Florida, you must file the previous year's report between January 1 and May 1.
2 Comments . New Comment
Hello. When forming an llc in Florida, won't we get a special suite number as the company address?
Hello,
You can buy it. You can get special suite access when you activate the premium mail forwarding service in the optional items tab of the Northwest order form.