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 consultations with legal experts, financial advisors, and fellow professionals, I have compiled an extensive guide outlining the expected expenses for establishing an LLC in Florida.
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.
- Registering a Florida LLC is $125, which includes a filing fee of $100 for the application and an additional registered agent fee of $25
- Additional expenses may include registering a fictitious name for $50, drafting an operating agreement ($733.50), obtaining licenses and permits, and paying the Florida LLC annual report fees ($138.75)
- Optional expenses can arise if professional services are required may cost from $0 to about $1000
How Much Does it Cost to Register an LLC in Florida?
It costs a total of $125 to register an LLC in Florida. The registration process includes a filing fee of $100 for the application and an additional designated Florida registered agent fee of $25.
Additional costs may include legal or professional services if assistance is required for the registration process, which can vary based on individual needs and complexities.
Costs of Registering Your Florida LLC
There is no such thing as a free LLC while opening a limited liability company in Florida. You must pay the Florida LLC filing fee, the minimum requirement to be legally acknowledged as a business entity and conduct business in the state.
Here are the costs you might incur:
Registering A Fictitious Name: $50
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.
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.
Florida LLC Articles Of Organization Cost: $125
LLC Articles of formation are the main documents you need to start your LLC in Florida.
This document contains the name of the LLC, the state and physical address where it is located, the 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 Fee: $35 to $500 Annually
An LLC registered agent is a business or person designated to receive legal papers on behalf of a limited liability company in Florida.
Registered agents charge an annual fee depending on which company they work with, but it will typically range from $35 to $500.
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.
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.
Here are other potential fees you might incur:
Florida LLC Cost of Operating Agreement
Because LLC operating agreements enable you to skip state rules by creating your terms of operation, they can be quite useful for Florida LLCs.
Based on ContractsCounsel's marketplace data, the average costs associated with 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
These figures provide insights into the state's prevailing market rates for operating agreement services.
It is important to note that these averages may vary depending on the specific requirements of your LLC. Furthermore, a company agreement must contain particular elements per Florida state law while drafting it.
You can create your operating agreement if you have prior knowledge in this area or download a copy from the internet.
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 LLC Cost Florida
The normal processing time for Florida LLC formation takes up to 7 days if you file by mail or 2 days 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
Apart from the LLC formation fees, there may be additional costs associated with obtaining specific business permits or licenses required to operate legally in Florida.
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.
Florida LLC Annual Report Fee
Florida LLC annual fees can be filed online at a $138.75 filing fee.
This recurring expense must be paid after establishing your LLC in Florida to maintain its status.
These fees are generally paid simultaneously with submitting your Florida annual report with the state, which is done through an e-service portal on the Florida Division of Corporations website.
The report must include the company name, its purpose, and the address established in Florida.
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 the Articles of Organization is needed when the company has changed information about the Florida LLC.
There are two amendment forms - Amendment to Articles of Organization and Correction Statement for Florida LLCs.
The difference 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 Florida 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
However, if you want to do business in Florida must pay a common filing fee of $125 to the Department of State.
How Much Does It Cost to Get an Ein Number in Florida?
It costs $0 to obtain an EIN in Florida. However, it's important to note that these fees are subject to change, so it's advisable to visit the official website of the Internal Revenue Service (IRS) for the most up-to-date information.
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.
Do LLC Pay Taxes in Florida?
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.
How Much Is a Certificate of Status in Florida?
A Certificate of Status in Florida costs $5 and can be obtained through mail, in-person, or online. This essential document verifies a company's legal existence and active status within the state. Obtaining the certificate is a straightforward process, providing individuals with the necessary proof of their business's legitimacy.
How Much is a Single-Member LLC in Florida?
A single-member LLC in Florida costs $125 to file the Articles of Organization with the Florida Division of Corporations. It's important to note that there may be additional costs involved, such as annual report fees and professional services fees if you require assistance.
How Much Does It Cost to Set Up an LLP in Florida?
It costs $965 to set up an LLP in Florida. Additionally, you may need to budget for the annual report of $900. In case of any amendments to the annual report, the cost would be $411.25. These expenses cover the essential requirements for establishing and maintaining an LLP in Florida.
How Much Does It Cost to Renew a Florida LLC?
In Florida, renewing a Florida LLC incurs an annual cost of $138.75. This fee covers the annual report fees necessary for the renewal process and ensures the continued legal existence of the LLC. The renewal fee ensures the continued existence and compliance of your LLC within the state.
Cost of Setting Up a Florida LLC
Setting up a Florida LLC involves several cost factors to consider. The main expenses include the state filing fee, typically around $125, and the registered agent fee, ranging from $50 to $500 per year.
Additional costs may include obtaining an Employer Identification Number (EIN) from the IRS, estimated at no charge, and legal or professional services fees for assistance with the formation process.
It's essential to consult with professional Florida LLC formation services to ensure compliance with legal requirements and to estimate the total setup expenses accurately.