The process of forming an LLC is relatively simple.
However, starting a small business can be expensive, especially when you factor in how much money you need to set aside for various documents and paperwork that will have your business entity legally recognized by the state.
This article will break down all the costs associated with forming an LLC in Florida so you can make informed decisions based on what kind of business entity best suits your needs.
Necessary Expenses for Florida LLC Formation
You will be able to avoid certain expenses while opening a limited liability company in Florida, but you will have to pay others.
There is no such thing as free LLC formation because you must pay the state filing fee, which is the minimum requirement to be legally acknowledged as a business entity and conduct business in the state.
Register a Fictitious Name
Unlike most US states, Florida doesn't allow name reservations. Instead, suppose you want to conduct business under a name that is different from your personal name.
In that case, you have to register a fictitious name when you file your LLC articles of organization.
The registration process is done online and costs $50 in total.
The Florida Department of State website has an online application and a downloadable mail-in registration form.
Each business name registered in the state must be unique, so if a fictitious name isn't available or it already belongs to someone else, you have to find a different name for your LLC.
Keep in mind that registering under a fictitious name doesn't reserve your name.
The fictitious name registration is a one-time process, and it can be done anytime before your LLC articles of organization with the state.
Florida LLC Articles of Organization
LLC Articles of formation are the main documents you need to start your LLC in Florida.
This document contains the name of the LLC, state and physical address where it is located, registered agent name/office address, who LLC members or managers are, and its effective date.
The Articles of Organization are filed with the Florida Division of Corporations online, in person, or by mail. The form is available on the Florida Sunbiz website.
The filing fee for filing Articles of Organization is $125.
A Florida registered agent service
A registered agent or a registered agent service is a business or person designated to receive legal papers on behalf of the limited liability company in Florida.
You can appoint a Registered agent service online. They are usually very inexpensive and provide all the necessary services you need for your LLC.
Registered agents charge an annual fee that is different depending on which company they work with, but it will typically range from $35 to $500.
Many companies nowadays offer this service online.
You can sign up and pay the fees by credit card; however, many registered agent services will provide a paper contract for your LLC formation upon request if you still prefer to do it offline.
Your registered agent must sign the consent to their appointment when you file Florida Articles of Organization.
Note: You don't need to hire a third-party agency to act as your registered agent in Florida because you can be your registered agent as long as you are of legal age and have a Florida street address.
Keep in mind, though, that this may be a strain on your time and energy.
Optional Expenses for Florida LLC formation
In some cases, Florida LLC fees might be optional, depending on the business structure.
Furthermore, if you plan to set up a professional limited liability company in Florida, you will almost certainly have to pay extra licensing and permit costs.
Florida LLC Operating Agreement
Operating agreements are legal documents describing the LLC's commercial policies and regulations, including how members share profits.
Because operating agreements enable you to skip state rules by creating your terms of operation, they can be quite useful for Florida LLCs.
Keep in mind that a company agreement must contain particular elements according to Florida state law while drafting it.
You can start an LLC without an operating agreement, but it may be useful. If you don't have one, the Florida law default provisions will apply to your LLC.
You can create your own operating agreement if you have prior knowledge in this area or download a copy from the internet.
You may produce an operating agreement that is lawful and enforceable if you utilize one of these solutions.
If you're not sure what provisions you'll need, consult a lawyer and have them write your operating agreement for you but keep in mind that it will cost extra money, especially if you hire a lawyer.
Expedited processing
The normal processing time for Florida LLC formation takes up to 7 days if you file by mail or 2 days if you file online.
However, if you wish to speed up the process, you can opt for expedited processing by paying a $100 filing fee.
Licenses and permits
A state-wide business operating license is not required or given in Florida.
This simply implies that you don't need a business license from the state of Florida to run your company in the state.
However, business entities that provide professional services, such as accounting, law, and architecture, must obtain a license from Florida's Department of Business and Professional Regulation.
The cost of a Florida business license is dependent on the municipality in which you operate your company.
It may range from $25 to several hundred dollars, depending on the type and size of your LLC. Every year, you must renew your license and pay a fee.
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Annual report
Recurring expenses must be paid after establishing your LLC in Florida to maintain its status.
These fees are generally paid simultaneously as submitting your Florida annual report with the state, which is done through an e-service portal on the Florida Division of Corporations website.
The annual report for Florida LLCs is the document you have to submit every year. It represents the status of your LLC.
The report must include the company name, its purpose, and the address established in Florida. It can be filed online at a $138.75 filing fee.
Failing to submit your Florida annual report in time will result in a $400 late fee.
Amending Florida LLC Articles of Organization
The amendment to Articles of Organization for Florida LCCs is needed when the company has changed information about the LLC.
There are two different types of amendment forms - Amendment to Articles of Organization and Correction Statement for Florida LLCs.
The difference between them is that an Amendment Form changes something in the filing, while a Correction Form corrects mistakes.
Amending your Articles of Organization costs $25.
Using an LLC formation service
If you don't want the hassle or have no time to see the whole LLC formation yourself, you can hire a professional LLC formation service in Florida.
They will take all the steps listed above, plus advise you on what type of business entity is best for your situation.
The cost of LLC formation services starts from $0 but can go up to about $1000 for a full-service company.
Remember that state filing fees are required regardless of whether you hire a third-party formation service.
The Cost to Start a Foreign LLC
The cost to form a foreign LLC in Florida may differ from the cost required when you form an LLC as a domestic entity.
The cost to form a foreign LLC in Florida may differ from the cost required when you form an LLC as a domestic entity.
Foreign LLCs that want to do business in Florida need to pay a $125 registration fee to the Department of State.
FAQs
How Much Does It Cost to Get an Ein Number in Florida?
Obtaining an Employer Identification Number is free when starting an LLC in Florida.
This unique number is used when filing taxes, reporting income, and maintaining records.
You can apply for one through the Internal Revenue Service website.
Does Florida Have a Franchise Tax for LLC?
Unless your LLC is taxed as a C or S corporation, there is no franchise tax for your LLC in Florida.
How Much Does It Cost to Open a Business Bank Account For a Florida LLC?
Depending on the bank, your entity type, and the location where you created your Florida LLC, certain prerequisites for establishing a business bank account may vary.
Some banks demand only a few to several hundred dollars as an opening deposit.
Do LLC Pay Taxes in Florida?
Florida does not impose an income tax on individuals and has a 6% sales tax.
Florida corporations are taxed at a rate of 5.5 percent, while LLCs, sole proprietorships, and S corporations are exempt from paying federal income taxes.
Do I Need to Register With the Florida Department of Revenue?
Suppose your LLC plans to hire independent contractors or regularly engage in business transactions with other Florida companies.
In that case, you must register your LLC with the Florida Department of Revenue and pay state income tax, employer taxes, and so on.
How Much Is a Certificate of Status in Florida?
Obtaining a certificate of status is $5.You can obtain it by mail, in person, or online.
How much is a single-member LLC in Florida?
There is no difference in the costs you need to cover, whether you start your LLC as a single-member or multi-member.
You still need to file your Articles of Organization, appoint a registered agent, obtain business licenses, etc.
How Much Does It Cost to Set Up an LLP in Florida?
Limited partnership fees differ from those filed for a traditional LLC. The filing fee for an LP in Florida is $965.00.
For a detailed list of costs needed for an LP, make sure to visit the Florida SunBiz website and navigate to the Forms & Fees dropdown menu.
How Much Does It Cost to Renew an LLC in Florida?
Renewing your LLC in Florida entails filing the annual report. The cost of filing an annual report is $138.75, but you risk paying a $4000 fine for late filings or even risk dissolution if you fail to file an annual report at all.
How Do I Set Up an LLC in Florida for Free?
You can't set an LLC in Florida for free because fees are required by the state that you can't evade.
There are additional fees that vary depending on what business entity type you choose and how many members your LLC will have.
Conclusion
Once you've decided to form an LLC, many decisions must be made thoroughly.
It's important not to make any hasty decisions and instead take time with these questions about how much money will be needed for start-up costs, monthly fees, taxes, etc.
To help you get started on your journey toward forming an LLC in Florida, we recommend reaching out to ZenBusiness who can provide professional advice at a low cost or free of charge.
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