An LLC is a business structure formed particularly for liability protection. An LLC is a hybrid of other business entities and this makes it popular among small business owners.  

Knowing what it costs to set up a limited liability company (LLC) in every state is a very crucial step in gearing your business in the right direction. Our site will walk you through all the necessary requirements and the cost to start an LLC in every state as well as the step-by-step process in forming an LLC. We will start by looking at Florida LLC costs. Our guidelines apply to forming a Florida single-member LLC as well. 

Filing Requirements & Overall Florida LLC Costs 

Forming your business in Florida and keeping it in good standing involves some necessary expenses. Some of the costs you may incur during LLC formation are charges by the Florida Department of State, Florida government, or Federal government. 

Here are some of the most common LLC formation requirements and the cost of LLC in Florida. 

Florida LLC Filing Fee

To form an LLC in Florida, you need to file articles of organization with the Department of State during which you will have to pay a $125 state filing fee. 

For a Florida foreign LLC, you will file an Application by Foreign LLC for Authorization to Transact Business in Florida [1]. If you want to be issued with the certificate of status, you will pay an additional $5 on top of the state filing fee. A certificate of status is simply what is called the certificate of good standing in other states- issued by the secretary of states as proof that an entity is currently registered. 

Florida LLC Annual Report

A Florida LLC must file an annual report with the Department of state during which you will have to pay a $138.75 filing fee. You can fill the form online and submit it through the Florida Division of Corporations’ official website [2] before the 1st of May. The state will charge $400 for a late submission. 

Registered Agent Fee

A Florida LLC is also required to appoint a registered agent. A registered agent helps keep your business in compliance with state regulations by reminding you of important filing deadlines. A registered agent can be a third-party individual, a business entity, a member of your company, or yourself. 

For that reason, a registered agent fee in the state of Florida will depend on whose service you choose but it ranges between $50 to $300. A Florida registered agent must be over 18 years and based in Florida. 

Application for Withdrawal (Foreign LLC)

You will need to pay a $25 filing fee to dissolve a Florida LLC. However, if you need a certified copy of the Florida LLC dissolution, you can get one for $30 additional in fees. 

Business Licenses

Some businesses require licenses and permits in order to operate in Florida. Depending on your geographical location or the type of business, you might need either a local, state, or federal permit or license. 

The cost of a business license or permit in Florida will depend on the type of business but expect to spend below $100.

Taxes

Florida LLCs are considered pass-through entities just like a sole proprietorship for tax purposes. But Florida is one the most tax-friendly state. Imagine a state with no income tax, no franchise tax and only a sales tax rate of 6%. If you have your LLC be taxed as a corporation, the state only charges a tax rate of 5.5% on corporations. 

Other LLC Filing Costs

In addition to the mandatory charges that have been discussed above, there are other optional filing fees associated with starting an LLC in Florida.

LLC Name Reservation Fee

The Florida Department of State does not offer a name reservation service. Meaning, your LLC name will be available to the public until you file your article of organization with the secretary of state. They only charge $25 to reserve your preferred name for 120 days.

“Doing Business As” (DBA) Name

If you are planning to run your Florida LLC with a different name from your official business name, you’ll need to register a DBA. To get a DBA name for your LLC in Florida, you have to file an Application for Registration of Fictitious Name [3] and pay a filing fee of $50 only.

Business Domain Name & Website

A business domain name is the web address for your business website. You need to register a domain name for your Florida LLC so that nobody else can use the same name. Normally, domain name registration in Florida ranges between $2- $20 but newer domain names with extensions may go above the range. 

Articles of Organization Fee

You cannot start your Florida LLC without filing articles of organization. The articles of organization are filed with the Florida Department of State at $125.

Attorney Fees

 If you don’t understand a concept and you have a question concerning Florida LLC, you should consult an attorney. Attorney charges vary, but you should expect something between $500 – $2,000 flat fee or $150 – $350 hourly fees. 

Tax ID Number (EIN)

An EIN  is essentially a social security number for an organization. You will have to get an EIN to help you open an account, file and manage federal state taxes, and hire employees. You can get an EIN for your Florida LLC for free from the IRS by applying online.

The Top 2 Florida LLC Services

ZenBusiness

Zenbusiness will help you prepare and file your articles of organization with the secretary of state. The company does this at affordable charges and still offers you a registered agent service for 1 year free. 

In addition, the company offers a worry-free guarantee feature that includes preparation and filing of your annual report, and two amendments per year. Though Florida does not offer rush filing, ZenBusiness’s top package offers expedited speed.

ZenBusiness’s other biggest win is its reliable customer support service. As a result, the company boasts the best customer feedback [4]

IncFile

IncFile was established in 2004 and has already helped more than 250,000 business owners in the preparation and filing of their business documents in several states including Florida. It has remained one of the most sought-after business formation services due to its pricing, particularly the basic formation package. 

 Despite their low basic formation pricing, they offer a 1-year free registered agent service in all their packages. 

Other services offered in addition to filing an article of the organization include name search, preparation of an operating agreement, obtaining an EIN, company alerts on annual report deadline, licenses, statement of formation among others. The company also boasts a 1-day processing speed and great customer support.

For that reason, they have one of the best online feedback [5] among users. 

How to Start an LLC in Florida 

Florida-llc

  1. Name Your Florida LLC
  2. Choose Your Registered Agent
  3. File Articles of Organization
  4. Prepare an Operating Agreement
  5. Obtain an EIN
  6. File Annual Reports

Step 1: Name Your Florida LLC

Choose an LLC name that is available for use in the state of Florida, available as a web domain, and meets other Florida state requirements. To achieve that, you will have to conduct a thorough online and business database name search to ensure you pick on a suitable name for your business.

Step 2: Choose Your Registered Agent

Every Florida LLC is required to appoint a registered agent that will receive important documents on behalf of the company. A registered agent can be an entity, a third-party individual, a member of your company, or yourself. An individual offering the registered agent services must be over 18 years and based in Florida.

Step 3: File Articles of Organization

To form an LLC in Florida, you must file articles of organization with the Florida Department of State. During LLC registration you will need to pay the state fee.

The articles of the organization will ask you to include some information including mailing address, street address, contact info, true name, among others. You can file Florida articles of organization online or download the form and send it via email. 

Step 4: Prepare an Operating Agreement

An LLC operating agreement is not a mandatory requirement for Florida LLC formation but it is very important as it lists down how your business is managed and the members of your company. In essence, operating agreements for LLCs are equivalent to the board of directors in corporations.

Step 5: Obtain an EIN

Employer Identification Number (EIN), is like your company’s social security and it is very important. You will need an EIN to open a business bank account, file and manage federal tax as well as hire employees in Florida. You can download an EIN form from the IRS website for free.  

Step 6: File Annual Reports

The Florida secretary of state has to keep up-to-date business records. They do this by ensuring a Florida LLC files an annual report with the Department of State during which you will have to pay the Florida annual report fee. 

Conclusion

Florida may not have the best LLC filing and annual renewal fees but is very friendly when it comes to taxation. It is ranked among the best when it comes to individual tax, corporate tax, and self-employment taxes in the latest State Business Tax Index [6]

Even more, it is one of the few states that don’t impose franchises on entities. For that reason, a small business owner looking to form a long-term business in Florida should not hesitate because the low tax charges translate to a cheaper LLC Florida cost in the long run. 

Frequently Asked Questions

Do LLCs have annual fees?

You will have to incur some annual fees to keep your company in compliance with the state. For instance, some states require that LLC pay annual report filing fees. Besides, some services such as the Registered agent service also require annual renewal fees.

How is an LLC taxed in Florida?

Normally, Florida LLCs are treated as a pass-through entity and every member has to pay individual income tax. An LLC in itself is not taxed in Florida unless you decide to have your company taxed as another entity such as a corporation.

What is the cheapest way to get an LLC?

The cheapest way to get an LLC is to file the articles of the organization with the secretary of state by yourself. This will leave you with only state filing fees to worry about.

Should I form my LLC in Florida, or choose a state like Nevada or Wyoming?

It would be a great idea if a Florida business forms an LLC within the state. Forming a business in states where you run your business has its advantages. For instance, you are well familiar with the state regulations and offices.

How much does it cost to set up an LLC in Florida?

The main cost of setting up an LLC in the state of Florida is filing the articles of organization with the Florida Department of State.


+ 6 sources

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  1. FLORIDA DEPARTMENT OF STATE DIVISION OF CORPORATIONS. (n.d.). [online] . Available at: https://fldoswebumbracoprod.blob.core.windows.net/media/702554/cr2e027.pdf [Accessed 27 Jul. 2021].
  2. ‌Myflorida.com. (2021). File Annual Report – Division of Corporations – Florida Department of State. [online] Available at: https://dos.myflorida.com/sunbiz/manage-business/efile/annual-report/ [Accessed 27 Jul. 2021].
  3. APPLICATION FOR REGISTRATION OF FICTITIOUS NAME. (n.d.). [online] . Available at: http://form.sunbiz.org/pdf/CR4E001.pdf [Accessed 27 Jul. 2021].
  4. ‌Trustpilot. (2021). ZenBusiness. [online] Available at: https://www.trustpilot.com/review/www.zenbusiness.com [Accessed 27 Jul. 2021].
  5. ‌Shopperapproved.com. (2016). IncFile.com Reviews | Shopper Approved. [online] Available at: https://www.shopperapproved.com/reviews/IncFile.com [Accessed 27 Jul. 2021].
  6. ‌Walczak, J. and Cammenga, J. (2020). 2021 State Business Tax Climate Index. [online] Tax Foundation. Available at: https://taxfoundation.org/2021-state-business-tax-climate-index/ [Accessed 27 Jul. 2021].