How Much Does an LLC Cost in Florida? (What Fees To Expect)
Starting an LLC can be expensive, especially considering how much money you must set aside for various documents and paperwork.
To address this, I dedicated significant time and effort to researching and analyzing the various fees involved.
Through my experience as a Mergers and Acquisitions specialist and consultations with LLC experts in the state, we compiled an extensive guide outlining the expected expenses for establishing an LLC in Florida.
If starting an LLC is on your agenda, engaging a skilled Florida LLC service can help circumvent mistakes that could otherwise lengthen the LLC establishment process.
Quick Summary
- An LLC in Florida costs $125 to file the Articles of Organization.
- Upon approval of the business entity, additional costs may arise, including registered agent service fee, licenses and permits, annual reports, taxes, and other documentation.
- Florida LLCs enjoy no individual income tax and corporations face a 5.5% income tax, with a 6% sales tax applied, according to the Florida Department of Revenue.
- In my experience in helping clients form LLCs, it would be advisable to operate a business in the construction industry, transportation, or utilities sector.
Cost to Start an LLC in Florida
Before forming an LLC in the state, there are mandatory expenses and additional costs if you choose to obtain certain services or documents.
1. LLC Formation Filing Fee ($125 - Mandatory)
LLC Articles of formation are the main documents you need to start your LLC in Florida.
The Articles of Organization is filed with the Florida Division of Corporations online, in person, or by mail along with the $125 state fee. The form is available on the Florida Sunbiz website.
Expedited service is not offered in the state. Fortunately, when I had to help clients file the document, the online application only took 1-2 business days.
2. Registered Agent Service Fee ($80 to $300 Annually - Optional)
An LLC registered agent is a business or person designated to receive legal papers on behalf of a limited liability company in Florida. You can act as your own registered agent or appoint any other qualified member of the LLC at no additional cost.
However, a registered agent service charge an annual fee depending on which company they work with, but it will typically range from $80 to $300.
Expenses Following the Approval of Your LLC
Other Florida LLC fees may arise, depending on the nature of the business and the need of the company.
Here are other potential fees you might incur:
1. Business Licenses and Permits (Depending on the Line of Business - Mandatory)
The cost of a Florida business license is dependent on the type of industry and municipality in which you operate your company.
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.
A client of mine was required to have an electrical contractor license to legally practice their profession in the state. The license fee ranges from $50 to $200.
2. Annual Report Fee ($138.75 - Mandatory)
Florida LLC annual fees can be filed online at a $138.75 filing fee. The annual report for Florida LLCs is the document you have to submit every year. It represents the status of your LLC.
Failing to submit your Florida annual report in time will result in a $400 late fee. That's why I ensure my clients file their annual reports on or before the due date to remain in good standing with the state and avoid penalties.
"In Florida, LLCs must submit an Annual Report to the Department of State to keep their "active status," regardless of whether the company engaged in business activities or earned income that year."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
3. Taxes (Depending on Income Bracket - Mandatory)
Florida LLCs do not pay individual income taxes, making it a tax-friendly choice. However, corporations conducting business in Florida are subject to a 5.5% income tax. Additionally, Florida imposes a 6% sales tax, according to the Florida Department of Revenue.
4. Operating Agreement ($100 - $200 - Optional, but Recommended)
You can draft an operating agreement if you have prior knowledge in this area or download a copy from the internet at no additional cost.
If you want to hire an online legal service, the average cost is between $100 to $200.
Based on ContractsCounsel's marketplace data, the average costs associated with a professionally drafted Florida LLC operating agreement services are as follows:
- The average cost for drafting an operating agreement is approximately $733.50
- The average cost for reviewing an operating agreement is around $395.00
- If you prefer a flat fee structure, the average rate for an operating agreement in Florida is approximately $689.55
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.
5. Certificate of Status ($5 - Optional, but Recommended)
A Certificate of Status in Florida costs $5 and can be obtained through mail, in-person, or online. This document verifies a company's legal existence and active status within the state.
That's why I always keep a Certificate of Status on file since investors prefer companies that are in good standing with the state.
6. EIN ($0 - Optional, but Recommended)
An Employer's Identification Number is necessary for opening business bank accounts, hiring employees, and applying for loans. The Internal Revenue Service issues the EIN online at no additional cost.
7. DBA Name ($50 - Optional)
To register a fictitious name, pay the $50 filing fee online. The Florida Department of State website has an online application and a downloadable mail-in registration form [1]. According to the Florida Department of State, over 60% of businesses opt for online registration for its ease and efficiency.
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.
Remember 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 you file your LLC articles of organization with the state.
FAQs
How Much Does It Cost to Get an Ein Number in Florida?
Obtaining an EIN in Florida is completely free of charge.
How Much Does It Cost to Open a Business Bank Account For a Florida LLC?
It costs a varying amount to open a business bank account for a Florida LLC, depending on the bank and the specific account features you require. Generally, you can expect to encounter expenses such as an initial deposit, monthly maintenance fees, transaction fees, and possibly additional charges.
How Much Does It Cost to Renew a Florida LLC?
It costs $138.75 per year to renew a Florida LLC. This fee covers the annual report fees necessary for the renewal process and ensures the continued legal existence of the LLC.
References:
- https://dos.myflorida.com
