How to Start Your Own LLC in Florida - Complete Guide

How to Start Your LLC in Florida

If you are dreaming of starting your business in the sunny skies of Florida? Not only does the formation of an LLC in Florida protect your personal property, but it also opens tax benefits and reputation. You will not only know how to select a memorable name, complete Articles of Organization, select a registered agent, and remain in compliance, but also in doing so, to have your new company flourish.

Florida LLC Formation Illustration

1. Name Your Florida LLC

Giving a name to your business is not easy. It has to have a unique name, easy to recall and one that tells about what your business does. In order to pick a name, you may use the following methods:

The name of your business is your business identity and people will be the first to make a judgment about your company hence you should take your time and get it right.

Additionally, refer to Florida LLC naming laws so as to be certain you are not violating.

Florida Check name availability

Having a few business name ideas, you will want to make sure that they are available. Visit the Florida Secretary of State site, and key in the name of your business. The search will give you results of similar names to the name you typed and thus ensure no name can be confused with yours. You must go an extra mile and conduct a search of other similar business names because you do not want a name that could easily be mixed with other businesses in Florida.

Naming Requirements in Florida LLC

Your Florida LLC name cannot use words that might confuse with a governmental agency and must have one of the following: The term Limited Liability Company or an established abbreviation (LLC or L.L.C.) and must contain it.


The business name should also be a marked difference to all other business names in the state and should not use prohibited words like bank, insurance, or university without permission of state and should not suggest an indication of engaging in any illegal act.

Check Federal Trademarks

Then, a search with the US Patent and Trademark Office (USPTO) is done to make sure that the name is not a registered trademark and can therefore be used on a national level.

In Florida, the cost of fictitious name registration is 50 dollars. Upon processing your application, the registration of the name lasts 5 years.

Additional Tips

In Florida, it is not possible to reserve a business name. Your LLC should be established as early as possible to protect your name of choice.

Doing Business As (DBA)

You can also wish to conduct business in a different name other than your LLC name. You are going to be required to register a DBA name or doing business as. Two are the key reasons why you may aspire to use the DBA:

Assume that you wish to enter new product lines. As an illustration, when your business name is JJ Waffles, you would wish to increase and sell JJ Muffins. You can be a multiple of DBAs under the umbrella of your one LLC.

With a DBA, you are allowed to open a business bank account, using this name. And in that way with JJs Muffins, customers can pay JJs Muffins and you can deposit that as JJs Muffins into the bank account with that name.

A fictitious name in Florida is referred to as DBA. To apply to get a fictitious name registered in Florida:

Visit the Division of corporations site and start the process of registration.

In the form, the following information is to be provided:

Florida Requirement: The name you are registering should also be advertised at least once in a newspaper located in the county where your principal place of business is (Chapter 50, Florida Statutes). Nevertheless, advertisement does not have to be proven. Rather, the applicant, who is you certifies to the name having been advertised by signing the application.

After filling all the necessary details you will be redirected to payment.

Registration fee on fictitious name: $50.

2. Select a Registered Agent

Florida has a requirement that LLCs must have a registered agent, an individual or corporation that has the mandate to accept and act on official business communications including legal, tax or financial documents.

The registered agent has the responsibility of receiving all the essential notices and documents. The registered agent may be an LLC member, individual or an entity as required by the state of Florida.

Florida Requirement of Registered Agents

Most business owners use the hired service of a registered agent to make sure that their LLC remains in full compliance and because it is convenient.

In case you become your registered agent, then you should be present at the address of your registered agent during all the business hours.

With registered agent service, you can go wherever you need to go to operate and develop your business.

3. Define Your Management Organization

The Florida LLCs are available in the form of member-managed and manager-managed and depending on the extent to which the owners would like to participate in day-to-day activities, members may take the structure of either.

Member-Managed

All management tasks are done by the members. Most suitable in the case of LLCs that have a small number of members involved in the day-to-day activities.

Manager-Managed

There are managers who are non-member employees or members who are in charge of the operations. Applicable in instances where there are passive members.

Florida Requirement: Pre-filing Before filing, list the managers in your Articles of Organization.

4. Submit Articles of Organization

In order to organize your LLC, submit Articles of Organization to Florida Division of Corporations.

Information Required

After you have entered the information, you will be given a chance to go through it.

The filing fee is $125. Once you make your filing, you would usually get a confirmation within the 1 to 2 weeks.

Florida Division of Corporations Contact

Florida Division of Corporations

Centre of Tallahassee, 2415 N. Monroe Street, Suite 810, Tallahassee, FL 32303.
Phone: 850.245.6000

5. Prepare an Operating Agreement

A legal document that describes the membership and the responsibilities of the members are called an Operating Agreement.

Florida does not demand an operating agreement, though, it is advisable even in the case of a single-member LLCs.

Typical Elements Include

Templates of the operating agreements can be found on the Internet, yet to be cautious an attorney should read them.

6. Register Your Employer Identification Number (EIN)

The IRS assigns a company a number that it uses to identify the company to pay taxes. Necessary in case your LLC has more than one member or employs workers.

Party responsible Requirement

Apply via the IRS website.

Any application made to EIN with or without mails, fax or online must include the name and the Taxpayer Identification Number (SSN, ITIN or EIN) of the true principal officer of the entity, its general partner, grantor, owner or trustor. The party is known as the responsible party by the IRS. The one who controls, manages or directs the entity and funds and assets is the one who is responsible. The person in charge should be a natural individual, with the exception of government bodies, a different company or organization.

7. Acquire Business licences and Permits

This is based on business type and place of operation.

Federal Level

OSHA, health permits, industry-related licenses.

State Level

This is a big process in the process of forming an LLC and therefore you should ensure that you visit your state and local government office to determine all the licenses and permits you are required to have.

Local Level

The permits granted by the city or county may include:

Hint: See a business lawyer or service such as MyCorporation, to make sure all is well.

8. Determine Your Tax Status

Default: Pass-through organization; earnings/losses on individual returns.

Default Tax Treatment

Single-Member LLC: This is taxed as a sole proprietorship; payment of self-employment taxes.

Multi-Member LLC: Taxed as a partnership; 1065-K; self-employment taxes are paid.

Corporate Election

C-Corp: Corporate tax 5.5; Tax on dividend is subject to federal tax.

S-Corp: Income flows; reasonable compensation that is liable to payroll taxes; profits that are above salary are not subject to self-employment tax.

LLC Overview in Florida - New Requirements

Open a Business Bank Account

Have personal and business finances apart.

Business Credit Card

Make credit and cover start-up costs.

Insurance

Records

Retain a copy of all formation documents, operating agreement, contracts and financial/legal documents.

Annual Reporting

Florida LLC FAQs

Name Reservation: $25

LLC Registration: $125

Business License: Varies

DBA: $50

Annual Report: $138.75

Online: 5 business days

Mail: 3–4 weeks

Required depending on industry and location.

Can be yourself if eligible.

Recommended but not required.

  • No state income tax for members
  • Corporate tax 5.5% if elected
  • Sales tax 6% on taxable goods/services
  • Payroll taxes for employees
  • Annual report fee $138.75

LLCs can be formed for nonprofit purposes, but forming a Florida nonprofit corporation is preferred for 501(c)(3) status.

Every 5 years

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