Forming an LLC in Florida is an important step in your entrepreneurial journey as it legitimizes your business by not only making sure your personal and professional finances stay separate but also ensuring you’re protected if your company is ever sued or experiences losses.
While registering your business as an LLC isn’t difficult, you do need to make sure you file everything accurately to avoid delays or refusals. If your business does get sued you also want to guarantee that you (and any members of your LLC) are properly protected.
To file your LLC in Florida follow our step-by-step guide to ensure you get quick approval (If you want to have a formation company handle all the paperwork for you, check out ZenBusiness):
How to Form an LLC in Florida – A Step by Step Guide
You can apply for your LLC on your own, or through a professional service. While filing on your own is straightforward you want to make sure you follow each step correctly so your application isn’t denied. If you’d rather not handle the legal side of your business we suggest hiring experts to file all your business paperwork for you (a more worry-free approach).
Otherwise, if you’re a do-it-yourself kind of person follow these 5 initial steps:
1. Name your Florida LLC
To form an LLC in Florida you need to follow specific name requirements set by the state law. Your business name needs to be unique, meaning no other company has a similar name.
Before checking to see if you’re desired business name is available, to abide by Florida LLC law, make sure the name of your company contains one of the following:
- Limited Liability Company
- Limited Company.
You can also abbreviate ‘Limited’ to Ltd. and ‘Company’ to ‘Co.’
Your LLC name can be your business name, like Plumbing King L.L.C, or the name of one of your LLC’s members, such as Joe Smith L.C.
Check Name Availability
Once you’ve decided on your name you need to check to see if it’s available and there’s no other company in Florida using it. The quick and easy way to do this is through a quick google search using your desired name.
If after that, you don’t find any competing companies you can move onto the next step – checking your business’s potential name through the Florida Corporation’s name search.
Unfortunately, if you find a name you like, but you don’t plan on registering your LLC yet, there’s no way to reserve the name. If this is the case just make sure you check your name availability again before filing.
Using a Fictitious Name
If you don’t want to use LLC in your business name then once your business is registered you can add a fictitious name. Also known as DBA (“doing business as”), or a trade name, a fictitious name allows you to run your business under a name that’s not the legal LLC registered name.
You can also use a fictitious name if you plan on running several different businesses under your LLC formation.
If you’d like to register a fictitious name you need to register the name through the Florida Division of Corporations. It costs $50 to register a trading name and you can apply online or by mail. The registration lasts 5 years.
Once you’ve figured out what your business name is and you’ve made sure it’s still available, the next step is to choose a registered agent who will help you with the legal side of your business.
2. Choose a Florida Agent for Service of Process
A registered agent is anyone who receives and sends legal documents on behalf of your company. They are the main point of contact between your company and the Secretary of State.
In Florida, an LLC must have a registered agent who lives in Florida and has a valid street address (not a P.O. box).
An LLC registered agent can be:
- A family member or friend
- A Commercial Registered Agent
Why you should use a registered agent
While the easier route seems to have yourself, or one of your LLC’s members, act as the registered agent, there are some benefits in hiring a professional. A registered agent will ensure your business is always in good standing with the state, helping you stay organized and up-to-date. It also adds a layer of protection since they’ll help you in the case of a lawsuit or any penalties/fines.
Once you’ve decided who’s the best person to be your registered agent the next step is to submit your LLC application form.
3. File Florida LLC Articles of Organization
To register your LLC in Florida you’re required to fill out the ‘Articles of Organization’ application form and submit it to the Florida Division of Corporations. You can apply online or by sending your application by mail.
If you apply online your LLC gets approved within 1-2 business days whereas snail mail takes up to 5-7 business days.
If you fill out the form with inaccurate information, your writing is illegible or you skip a section, your application will be refused. Be prepared to include the following information (and always read it over once before submitting):
- the LLC’s name
- the effective date of formation (either the day you’re applying or a future date).
- the name and address of the LLC’s registered agent
- the LLC’s initial principal office address, and
- signatures of one of the LLC members
It costs $125 to file your LLC in Florida. However, it costs an additional $30 to get a certified copy and an extra $5 if you want a certificate of status (also known as a certificate of good standing).
Once you get the approval you can move onto step 4 – creating an LLC Operating Agreement. If you’re operating your LLC by yourself skip to step 5.
4. Create an LLC Operating Agreement
If your LLC has two or more members, it should have an operating agreement. Although it’s not required in Florida, it’s recommended as it will outline how the business is structured and how it will operate among its members (and/or managers).
Some of the sections you’ll typically find covered in an operating agreement include:
- Capital distributions
Again, while this is not a necessary step, as you don’t have to mail it to the secretary of state, it is recommended if your LLC has more than 2 members. It helps clarify the rules of your LLC and makes sure they are legally documented.
After you’ve agreed and created an LLC Operating Agreement the next step is to create your unique employer identification number.
5. Apply for your Florida LLC Employer Identification Number (EIN)
Once your LLC has been approved you’ll need to get an employer identification number (EIN).
An EIN is a federal tax ID number that registers you with the Internal Revenue Service (IRS). This number is used to identify your company when filing taxes.
How to register for an EIN:
– Apply online or,
– fill out the Employer Identification Number form and fax it to 855-641-6935, or mail it to:
Internal Revenue Service,
Attn: EIN Operation,
If you apply online you’ll get instant approval. If you apply by fax it takes up to 4 business days whereas mailing it can take up to 4 weeks. Applying for your EIN is completely free!
Florida LLC Registration – Final Checklist & Summary
Ready to get started? Use this simple checklist to make sure you’ve dotted your i’s and crossed your t’s!
- Name your LLC – Your business name must include Limited Liability Company, Limited Company, L.L.C, or L.C. It can’t be used by any other business in Florida. Make sure you confirm the availability of your desired name through the state’s name search.
- Choose a Registered Office – A registered agent is a person who receives and sends legal documents on behalf of your company. It can be you, a friend or family member, or a commercial registered agent.
- File a Florida LLC Articles of Organization – To register your LLC in Florida you’re required to fill out the ‘Articles of Organization’ application form and submit it to the Florida Division of Corporations. It costs $125 to file and an additional $30 to get a certified copy. Add another $5 and you’ll get a certificate of good standing.
- Apply for your Florida LLC Employer Identification Number (EIN) & File your Tax Registration Form – Once you get approval for your LLC you need to apply for an employer identification number (EIN) through the IRS. This number is used to identify your company when filing taxes. You can apply online for free and approval is instant.
- Create Florida LLC Operating Agreement – If your LLC has two or more members, you should create an LLC operating agreement that outlines how the business is structured, who is responsible for what, and how much of the LLC each person owns. You don’t have to send your operating agreement to the Florida state but you should have one so everything is documented and signed by all members.
While there are a few different pieces into making sure your LLC is filed correctly, make sure you follow each step as stated so there are no errors.
If you can, we recommend using an all-around service to make sure your LLC gets set up correctly from the get-go. Just make sure you do your homework and choose one of the best LLC services for your business.
Our first recommendation is to go with ZenBusiness, an LLC creation service that holds your hand from start to finish. Packages start as low as $49.
How To Apply for a Florida LLC Online
Now that you know the exact steps on what’s needed to form your LLC it’s time to start the application process. There are two ways of going about this:
1. Do it Yourself
Taking the DIY route is a good option if your budget is tight or you’ve previously opened an LLC and understand how it works
2. Use an Online Formation Company
Using an online formation company is a better option if it’s your first time opening up an LLC and if it’s within your budget (formation services cost anywhere between $49 – $199). This is typically a better choice if you want to avoid headaches and have peace of mind knowing professionals are handling everything for you.
If using a professional service is more up your alley, here are our top 3 recommendations:
ZenBusiness built its platform to meet the needs of your business throughout its lifetime. When you pay for their services, you’ll receive a personalized dashboard to your business to store documents, receive alerts, and manage your website.
ZenBusiness charges based on a tier system. There are three different tiers with pricing as follows:
- The Starter = $49 annually
- The Pro = $199 annually
- The Premium = $299 annually
IncFile provides you with a full suite offering startup services to best support your business formation.
Their pricing model also depends on the state you are filling. You can generate a personalized quote on their website by entering in the necessary information of your business.
LegalZoom is an online legal service provider that helps you to be able to create legal documents without having to pay the expensive lawyer fees. Some of the services they provide assistance to include business formation, copyrights, and trademarks.
LegalZoom has many different pricing options available. For their LLC service, pricing begins at $79 + the allotted state fee.
When narrowing down your options, always try to choose a business that aligns with your needs and can help simplify the process for you. Do some research on the best LLC services available and go with the one that resonates most with you
After Starting Your Florida LLC
You’ve been approved – now what? The journey doesn’t stop here – there’s still a handful of things you need to do to get your business off the ground. We recommend ticking off the following items to make sure your LLC gets off on the right foot.
Purchase A Domain For Your Business
Having an online presence, even if your business is local, is important in creating trust, professionalism, and a way for people to find you. If you haven’t already thought about getting a website, now’s the time. In a tech-saturated world, you need a domain to not only attract new customers but help create a good first visual impression of what your business does and how it can help.
Get A Business Phone Number
Since your business is now an approved Florida LLC you should think about getting a business phone number. Having a business number is a great way to show professionalism to your clients and customers. It makes you more serious and more importantly – more trustworthy.
There’s a variety of different online phone services you can go with, or you could go the traditional route and open an account through a local branch. You can get a local number or a 1-800, the options are endless!
Open Your Florida LLC Business Bank Account
You’ll want to open a business account that’s separate from your personal banking. This will not only make accounting easier but you won’t have to worry about your finances mixing in with your business finances.
USA Business Bank Accounts
If you already have online banking it might be easier to open a business account through your current bank so all your banking (although in separate accounts) will be accessible in the same place. If you prefer to open something new keep these checking accounts in mind:
Chase – Free checking account with no extra fees – as long as you keep a $1,500 minimum balance.
BlueVine – Free checking account with mobile banking and a debit MasterCard.
Bank Novo – Open a free checking account with Free transfers and free ATM fees.
Florida Banks Business – Open a business checking account with no monthly fees and remote depositing.
Along with your business checking account, you should apply for a business credit card too. Having a business credit card is a good way to establish your business credit score (which may help if you ever need a loan). It also makes it easier for online purchases and again, it will keep your personal and business finances separate.
Find Accountant/Buy Accounting Software
Taxes get complicated fast and can be a burden to deal with. We recommend getting an accountant or using accounting software to make sure all your spending actions are being tracked (payroll, bills, invoices, receipts, etc.). Here are some popular options to look into:
Wave – Free invoicing & accounting software with credit card processing & payroll services.
Intuit Quickbooks – Online accounting software to track expenses, customize invoices, and run reports.
Freshbooks – Accounting software to send invoices, track time, manage receipts, expenses, and accept credit cards.
Directory of Federal Tax Return Preparers with Credential – If you want to use a local tax specialist you can search for a certified public accountant (CPA) through the IRS online directory.
Having all of your business reports in one spot is highly beneficial so you can keep an eye on your cash flow. To run a successful business you’re going to need to analyze how your business is performing and narrow down what’s working or what isn’t working so there’s always room for growth.
File Annual Registrations On Time
Every year you’ll need to file an LLC annual report with the Florida Division of Corporations. This is mandatory to keep your business active and must be filed between January 1st – May 1st. It costs $138.75 and there’s a $400 late fee if you forget, so get into the habit of marking it on your calendar! You can apply online through the Divison of Corporations business portal.
You’re not expected to submit your first report until the year after your formation. This means if you filed your LLC in Florida in March 2021, the deadline to submit your first report isn’t until May 1st, 2022.
Notify Florida Of Any Changes You Make To Your LLC
If at any time you make changes to your LLC you need to inform the state. If you’re using a registered agent they can do this for you. If you’re going about this alone then you can update changes through Florida’s business portal or through your registered agent.
8 Benefits of Forming an LLC in Florida
When you file your company as an LLC in Florida it helps solidify your standing in the business world. This motion shows other businesses and potential customers that you are willing to do what it takes to be a legally operating business.
Forming an LLC business in Florida will give you the security of a corporation but without all the paperwork. Some other benefits include:
1. Protect Your Personal Assets
The LLC will have its liability that does not automatically extend to the owners, unlike a sole proprietor, where you are legally responsible for everything. That means Florida LLC protects the liabilities and debts incurred by the business. In most situations, your assets, such as your car, home, or savings, will never be at risk if your Florida LLC is faced with lawsuits or bankruptcy.
2. Benefit From Business Profit Taxation
In an LLC in Florida, your profits and losses can pass through to your income without having to have corporate taxation.
3. Simple to Create and Maintain
The formation of a Florida LLC requires minimal paperwork and requirements. They are known for being easy to start and simple to maintain.
4. Minimal Restrictions
Your business matters can be managed by more than one owner or member while still being one main business to the public. This means all decisions and transactions behind the scenes can be equitably distributed while presenting one entity as you move forward.
5. Heighten Your Credibility
As you move forward, your Florida LLC will continuously be recognized as an entity. People and other businesses prefer doing business with a legitimate entity because it shows your level of professionalism.
6. Gain Access to Business Loans
When you form your Florida LLC, you will obtain a DUNS number and build your business credit, helping you to further build upon your business.
7. Benefit From Flexible Profit Distribution
In an LLC, you are not required to spread the distribution of profits equally across the owners. You have full control over profit distribution in your Florida LLC.
8. Good For Any Kind Of Business
An LLC business structure in Florida is an excellent choice for both medium and higher-risk level businesses. You might always want to consider opting to go with an LLC if you have a significant amount of personal assets to protect from your company. And lastly, LLCs are great for owners who are interested in paying lower tax rates than corporations.
Forming an LLC ensures your personal assets are protected and you won’t get doubled taxed. Best of all you can have everything set up fairly quickly. The entire process is easy and straightforward, as long as you remember to follow each step as listed above, and don’t forget to follow up with any additional steps (like annual reports, or accounting).
While you can file an LLC on your own – keep in mind you’re creating a legal business entity so you want to ensure everything you fill out is correct so that if you do ever get sued or have business losses, you’ll be properly protected.
We suggest setting up your LLC with a professional service, like ZenBusiness, as they can handle the entire process for you. With affordable options, this will give you peace of mind knowing everything is being handled correctly and it will give you some time back to focus on other business aspects, like creating a website and finding clients!
File Your Dream Business with ZenBusiness
FAQ – Forming Florida LLC
There are several different steps you’ll need to do to legally form your LLC. It’s a lot of information to take in and can get confusing. To help out we’ve compiled some answers to the most frequently asked questions:
What are LLCs and why are they important?
An LLC is a Limited Liability Company. It’s a business structure used to protect your assets, like your house, your car, or even your savings. No matter what happens to your business (lawsuits, bankruptcy, etc.) your assets are kept safe.
How Much Does It Cost to Start an LLC in Florida?
Expect to pay $125 to file an ‘articles of organization’ form. If you want a certified copy it’s an extra $30 and another $5 for a certificate of good standing. After your initial year, you’ll need to pay $138.75 to file your annual LLC report.
How Long Does It Take to Form an LLC in Florida?
If you apply online you get approval within 1-2 business days whereas mailing in your application takes up to 5-7 business days.
Can You Start an LLC on Your Own?
Yes, you can start forming an LLC on your own by following the step-by-step instructions provided in this article. For additional help, look to hire an all-around service provider.
Do You Need a Lawyer to Start an LLC in Florida?
No, you can start an LLC without a lawyer just be prepared to file and report everything on your own. If you’re not interested in getting a lawyer but want to make sure everything is filed correctly then use an online business formation service, like the ones listed in this article, with ZenBusiness as our #1 recommendation.
Does an LLC Need to Make Money?
No, an LLC doesn’t need to make profits but if you’re claiming tax deductions with no income the IRS will likely audit your business.
What Are The Downsides to Having an LLC?
There are pros and cons to forming an LLC. The pros are tax reductions, protecting your personal assets, and creating credibility for your business (and possible future business loans). The main con of an LLC is you’re considered self-employed. This is a disadvantage as you’d be taxed under self-employment and responsible to pay Social Security and Medicare taxes. The amount you’d be required to pay depends on your business’s total net earnings.