Forming an LLC in Florida can seem like a daunting process. There are multiple legal documents to file, payments of filing fees to the state and understanding regulatory, annual compliance and other relevant requirements that needs to be covered to have good standing with the state of Florida.
But it’s not as scary as it may seem. In the guide below you’ll find most of the must-have costs, optional ones, and recommendations on how to keep your LLC compliant (and at what cost). Let’s dive in:
Here is an overview of all the steps to take and the costs of forming an LLC in Florida.
A name search is free. The first step is to see if the business name you want to use for your LLC is available.
When you search for a name, you may find it listed in the database, so you need to check its status to see if you might still use it.
If the status is Active (ACT) or Inactive/UA, you cannot use the name. The names listed as Inactive/UA status come from dissolved LLCs. These names are not usable for 120 days (after a voluntary dissolution) or one year (after an administrative dissolution). If the status shows as Inactive (INACT), you can use the name.
When you find an available name that you like, if you are not yet ready to form your LLC, you may place a temporary hold on the name by making a name reservation. This reservation holds the name for your new LLC’s use for 120 days. The name reservation fee is $25.
Some companies wish to use a name different from their legal name to operate their business to form their LLC in Florida. To run your LLC using a different name, you must file a fictitious business name statement, also known as “doing business as” (DBA).
The first step is to look up the DBA name you want to use with the fictitious business name search tool.
Once you find a fictitious business name that you like that is available, you pay a fee to register it in association with your LLC. The registration fee is $50. This registration is valid for five years and expires on December 31 of the final year.
You must also publish a public notice of your DBA in a newspaper in each county you wish to operate using the DBA.
Getting a certified copy of your fictitious business name registration is optional and costs $30. Obtaining a certificate of the status of your fictitious business name registration is optional and costs $10.
You can renew the registration online or by mail for $50.
To form your LLC in Florida, you file your articles of organization for the cost of $100. Your required registered agent fee is $25, for a total of $125.
If you want to have an optional certified copy of your articles of organization filing, the fee is $30.
An optional certificate of status for an LLC is $5. In other states, this is sometimes called a “certificate in good standing.”
If you, as an individual, serve as the registered agent for your LLC, this is free. You must be at least 18 years old and a resident of Florida to serve as a registered agent.
This do-it-yourself way also requires that you maintain a physical office in Florida that is open during business hours to accept process service. A P.O. box or mail service does not qualify for the physical office requirement.
If you hire a company like ours to be your registered agent in Florida, the annual cost is $199.
Many Florida LLCs like to use us as their registered agent to make sure they comply with Florida laws. This way, they do not miss the important legal paperwork sent to them.
The annual fee is far cheaper than what it might cost to rent an office in Florida.
Others may charge up to $400 a year for the same registered agent service.
Creating an operating agreement is optional yet recommended, especially if you have more than one member/owner of your LLC. The operating agreement sets out key terms and conditions for who owns what portion of the business and how it operates.
If you use an online template and your operating agreement is simple, your cost is zero. If you use an attorney, you might pay up to $1,000. Some create the operating agreement and then get an attorney to review it for a few hundred dollars.
You may also use our operating agreement service if we form the LLC for you.
An LLC is a pass-through entity. The LLC owners pay personal income taxes (Florida state and federal) on their share of any LLC profits distributed to them and might be able to write off their portion of any LLC losses against other personal income subject to certain limits.
There is no state income tax in Florida on LLCs. There is no minimum annual franchise tax, with one exception. Owners of an LLC can request that the IRS treat the LLC as a corporation for tax purposes. In such a case, the LLC would pay Florida state income taxes.
All Florida corporations pay the Florida corporate income/franchise tax for the privilege of conducting business, deriving income, or existing in Florida. Corporations, including an entity like an LLC, if it is taxed on a federal level as a corporation, are subject to Florida’s income tax.
If your LLC elected to be treated as a corporation by the IRS, please consult with a qualified tax accountant to understand your Florida income taxes.
Having a business license or professional license and business tax receipt is required for a business to operate in each county in Florida. The cost for the licenses and fees depends on what the company does and where it operates in Florida.
Register with the Florida Department of Revenue to create an online account. The Florida Business Tax Application uses an interactive tool to determine your tax registration requirements for your new LLC.
Your LLC must file an annual report containing information about its owners and its registered agent. You may submit this report after January 1 of each year. It is due no later than 11:59 EST on May 1. The annual fee is $138.75. If you file late, there is a $400 late fee.
The good news is that most of the LLC formation costs are tax-deductible for federal taxes. Since an LLC is a pass-through entity for income tax purposes, the deductions apply to the personal income tax returns of the LLC’s owners. The deductions are allocated to the LLC’s owners in proportion to their ownership interests in the LLC. Some limitations on deductions may apply, so consult with a qualified tax adviser to understand your circumstances.
Items that are usually deductible include:
The LLC costs depend on where you locate your business within the state.
LLC filing fee | $125 |
Certified copy of your articles of organization (optional) | $30 |
Business license – This cost varies by municipality | Around 100$ is typical |
Registered agent (optional) | $199 to $400 |
Reserve business name (optional) | $25 |
Filing a DBA (optional) | $50 |
Operating agreement (optional) | $0 to $1,000 |
File an annual report | $138.75 |
Many find forming an LLC in Florida to be a bit overwhelming if they try to do it alone. The licenses and permits in Florida are quite complex and differ among the counties. It is helpful to work with an LLC formation service, like ours, to get expert advice about what is needed to get started. This help will allow your new LLC to register and then comply with all the Florida regulations.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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