How To Form an LLC In Florida (FL)?

Are you an entrepreneur looking to form an LLC in Florida? Then this guide is for you!

Florida ranks high as one of the best states to establish and grow a business, thanks to its low cost of living, business-friendly environment, and favorable tax incentives. But before you grow your business, you need to form one…and that’s where this article comes in.

This step-to-step guide will walk you through everything you need to do to form your LLC in Florida and get your business up and running in no time!

Choose a Name for Your Florida LLC

Choosing a business name is one of the first you need to do when forming an LLC in Florida. We know you probably already have a business name in mind, but first, let’s check it’s sensible.

We recommend choosing a name you and your clients will find easy to pronounce and remember. It should also be related to your Florida business activities so potential customers know what you do as soon as they hear your name.

Every LLC in Florida must also comply with the Florida naming guidelines and requirements. So, make sure your LLC abides by the following requirements:

• The name for your Florida LLC must be unique
• Your Florida LLC name must have the phrases “Limited Liability Company,” “L.L.C.,”  or “LLC”, often at the end.
• The chosen Florida LLC name should not confuse your LLC with government agencies and other business names.

You should also check to ensure that no other business entity in Florida uses your chosen company name by doing a Florida LLC name search.

Finally, we recommend checking your business name is available as a URL. Run a domain name search using a website like Namecheap and consider buying the .com version of your domain.

Hire a Registered Agent

Like most states, Florida requires every LLC to appoint or hire a registered agent. This person or business is responsible for the receipt of the LLC’s yearly tax forms and will also receive legal documents and other mail.

You can appoint yourself to act as a registered agent for your LLC or hire a professional registered agent service provider.

If you choose yourself as a registered agent, you must have a permanent home address in Florida and be available to receive legal and tax documents during all business hours in Florida. These are the reasons most business owners opt to hire a registered agent company. The fee for hiring one can range from around $100 to $300 a year, so it’s well worth the investment.

Consider one of the following companies:

Northwest

Every time you search online for a top registered agent company, Northwest is a name that will most likely show up. Over the years, they have assisted over 3,000,000 entrepreneurs in growing their businesses.

With incredible customer support and outstanding compliance tools, Northwest provides everything you will ever require from a registered agent service.

They also have Corporate Guides that cover everything you need to know about setting up and growing your business.

Their annual fee is $125. However, you will get a discounted annual fee of $100 if you hire their registered agent services in more than five states. This makes it the ideal choice for multi-location business owners.

ZenBusiness

Ranked #1 on Investopedia and Forbes, ZenBusiness has a reputation for offering top-notch registered agent services and helping business owners to form and grow their LLCs.

ZenBusiness has assisted more than 300,000 LLCs to remain compliant over the years. Besides offering all the essential registered agent services, customers love how intuitive and easy ZenBusiness’ website is to use.

The company’s annual fee starts at $199, but you can upgrade their registered agent services to include more perks, such as annual support alerts, submitted documents on your behalf, and two free filing changes per year.

They also have an incredible $5K Grant Program that supports business owners and gives them funding of up to $5,000.

LegalZoom

LegalZoom is another distinguished name in the registered agent industry, one that has satisfied the demands of hundreds of thousands of clients. Although their registered agent services are more expensive compared to Northwest and ZenBusiness, LegalZoom is an ideal option for larger LLCs.

If you are unsatisfied with the services of your current registered agent, LegalZoom offers to change your registered agent for free and covers all the state fees.

LegalZoom’s fee is $299 per year. However, purchasing its LLC formation services means you will pay only $249 in the first year.

Register Your Business

After picking a perfect name and hiring a registered agent for your LLC, you must register your business.

The simplest way to register your LLC in Florida is to file an Article of Organization online with the Florida Department of State Division of Corporations, which takes 1-2 business days. You will be required to create an account using an active email address, your LLC name, and the payment option (Prepaid Sunbiz E-File account, debit card, or credit card) that you will use to complete your purchase.

You can also register your Florida LLC via mail by downloading the Articles of Organization Form and filling in the required information. This can take 3-4 weeks. You will need to mail the copy together with the filing fee of $125 to the following address:

Florida Department of State, New Filing Section
Division of Corporations
P.O. Box 6327
Tallahassee, FL 32314

Either way, your Article of Organization must include the following details:

• The registered LLC name and address
• The business purpose of your Florida LLC
• The effective date of your LLC
• The name, address, and signature of the hired registered agent
• The name and signature of the authorized LLC representative
• Correspondence email and name

Create an Operating Agreement

An Operating Agreement is a document that defines the ownership over the LLC, the operating procedures of the LLC, and the LLC’s management structure. It also outlines the roles and responsibilities of each member and manager.

While LLCs are not required by Florida law to have an Operating Agreement, we recommend drafting one as it goes a long way to solve conflicts and legal issues among LLC members.

A well-created Operating Agreement for your Florida LLC must include the following critical information:

• The business management style and structure of your LLC
• Ownership percentage of each member of the LLC
• The voting rights, responsibilities, duties, and powers of each member
• The profit and loss distribution
• Management details, including how to take votes and how meetings are held
• Procedures for members selling shares or leaving (buy-sell provisions)

Obtain all Licenses and Permits

Almost all businesses need relevant licenses from the Florida Secretary of State. One common license among LLCs in Florida is the General business license or permit. So, if you plan to establish a business in multiple Florida cities, you must apply for a general business permit or license in each location.

In addition, you may be required to apply for additional licenses and permits at the state or county levels.

We recommend checking with the Department of Agriculture and Consumer Services (DACS) and the Department of Business & Professional Regulation (DBPR) to learn more about the trade licensing requirements for your Florida LLC.

Acquire Federal and State Tax IDs

Like an Employee Identification Number (EIN) or Social Security Number (SSN), a Federal and State Tax ID is used to identify a business entity for tax purposes. It is a number that assists the IRS (Internal Revenue Service) in tracking if your Florida business follows federal guidelines and is in good standing with state laws.

You will need a Federal and State Tax ID to open a business bank and credit account, file LLC tax returns, pay income tax, and get credit cards.

Acquiring a Federal and State Tax ID is free and straightforward. You only need to apply online or contact the IRS at 1-800-829-4933 or apply online.

However, there are some scenarios where you may not require a Federal and State Tax ID. For example, if you don’t have plans to hire anyone or you have a single-member LLC, you can use your personal SSN instead of acquiring a Federal and State Tax ID.

Open Business Bank and Credit Accounts

All LLCs in Florida are required to open a business bank and credit account in Florida. Maintaining the separate liability between the business owner and their business is vital. Failure to fulfill this requirement may result in your LLC being dissolved.

To open a business bank and credit account in Florida, you will require the following documentation and information:

• Your LLC’s Federal and State Tax ID
• The date your LLC was established
• The state and country where your LLC operates
• Your LLC Certificate of Formation or Article of Organization
• The Operating Agreement of your LLC

You may also need a minimum initial deposit amount.

There are many top banks in Florida, including the following:

• City National Bank of Florida
• Florida Credit Union
• First State Bank of Florida Keys

Purchase Florida Business Insurance

While lawsuits won’t impact the personal property of any LLC member, you will not want your LLC to end up with a large financial obligation. That’s why you should purchase relevant Florida business insurance for your LLC.

General liability insurance is the most common insurance policy purchased by most LLCs in Florida. It is a broad insurance coverage that protects against claims like bodily injury and property damage.

If your business has professional service providers, such as medical professionals or accountants, we recommend purchasing professional insurance liability insurance. This policy provides coverage against claims of malpractice and other professional errors.

Florida state laws also require LLC owners to purchase a workers’ compensation insurance policy if their business has employees. This policy offers coverage for job-related death, injury, or illness.

Get a competitive quote for all your business insurance needs by visiting a comparison website like Insureon.

Buy an LLC Formation Package to Speed Up the Process

You can follow the above steps to create a Florida LLC yourself, but you don’t have to do the hard work if you don’t want. Instead, you can purchase an LLC formation package to streamline and speed up the process.

There are multiple LLC formation companies in Florida. Some, like LegalZoom, offer both free and paid packages. Their basic LLC formation package is entirely free. You will only pay for the relevant state filing charges. They also have a Pro LLC formation package that costs $249 and a Premium LLC formation package that costs $299.

Other LLC formation companies, like IncFile, offer LLC formation packages completely free of charge. Simply pay for the state filing fee, and your Florida LLC will be formed in no time!

You can also choose the all-premium LLC formation companies, such as Northwest. They have appealing LLC formation packages that will streamline and speed up the formation process for only $225.

FAQs About Forming an LLC in Florida

How Long Will It Take to Form My Florida LLC?

You can have your LLC in Florida formed in as little as 1-2 business days if you file your Article of Organization online and within 3-4 weeks via mail. You can also have your LLC formed faster by paying for expedited processing.

How Much Does It Cost to Set Up an LLC in Florida?

The cost of forming an LLC in Florida is $125. This is a fee for filing the Article of Organization with the Florida Secretary of State. You will also need to pay $138.78 per year for filing the state’s annual report.

Can I Act as my Own Registered Agent in Florida?

Yes. You can pick yourself as a registered agent for your LLC in Florida if you meet the relevant Florida state laws. For example, you must be a permanent Florida resident at least 18 years of age and have a street address (not a P.O. BOX address). You must also be available to receive legal and business compliance documents during regular working hours in Florida.

Can I Form a Single-Member LLC in Florida?

Yes. You can form a single-member LLC in Florida. You only need to follow all the Florida regulations for forming an LLC. The formation steps are similar to what is highlighted in this article.

Conclusion

We hope this article has acquainted you with all the steps and resources for forming your LLC in Florida. The formation process is generally straightforward and only takes a few simple steps.

However, some steps can be time-consuming and complex. Therefore, we recommend hiring a top LLC formation company to streamline and speed up the process. You can also reach out to our LLC formation experts for professional assistance.

Also see:

• Florida (FL) Secretary of State (SOS) LLC & Business Search
• Florida (FL) Registered Agent Services
• How To Find Florida Bookkeepers