Most people consider Florida as a state to vacation and enjoy leisure time in, but it’s also a top choice for entrepreneurs. Florida is home to millions of small businesses, and many of them are in the tourism, agriculture, and science sectors. But, How about registering your LLC in Florida?
When starting a business in Florida, one of the main things you’ll need to decide on is a business entity type. You may want to consider an LLC. The limited liability company has been the most prominent business structure in Florida for years. LLCs are easy to begin and maintain, they come with tax flexibility and offer legal insurance for their owners.
Benefits of starting an LLC in Florida
- Members of an LLC aren’t personally accountable for business debts and lawsuits.
- LLCs have fewer recordkeeping requirements
- Florida doesn’t have a state income tax, so members can save a lot of money.
- At the federal level, LLC members can select their business’s tax treatment
- A limited liability company (LLC) also offers liability insurance.
Steps to forming an LLC in Florida
Register your LLC in Florida is easy. Simply follow the following steps, and you’ll be on your way.
Name Your Florida LLC
You’ll need to select a name to include in your articles before you can officially register an LLC. The Name chosen must comply with the following Florida’s naming requirements:
- Your business name must contain the words Limited Liability Company, LLC, or L.L.C.
- Your name must be different from an existing business in the state. To guarantee this, You can do a search on the Secretary of State’s website to determine if the particular business name you choose is in use.
- The business name cannot contain words used to name a government agency.
- Certain restricted words such as bank, lawyer, attorney, etc., may require additional documentation and licensure paperwork.
If you aren’t prepared to register your LLC but are concerned your name might be taken by someone else, you can reserve it for a small fee.
Choose Your Registered Agent
Florida requires you to appoint a registered agent for your LLC. A registered agent is a person or entity authorized to receive service of process and other official legal documents and reports on behalf of your LLC.
A registered agent can be a person, including yourself or an employee of your LLC, or an entity that offers a registered agent service and they must meet the following criteria:
- Entities or companies must provide registered agent services.
- The agent must have an address in Florida.
- The agent must be on-site and ready to accept documents during regular business hours.
Prepare and File Articles of Association
The Articles of association is a document that officially establishes your LLC by laying out fundamental information about it.
Prepare Articles of association and file them with the Florida Division of Corporations to properly register your Florida LLC.
To prepare your articles, you’ll generally need the following information:
- Your LLC name and principal place of business.
- The name and address of your registered agent
- The name and addresses of all LLC members.
- The name and address of the manager, if the LLC is manager-managed
- A reason why you formed the LLC.
- A time period over which the LLC will exist.
- Management structure.
The person forming the LLC and the registered agent are required to sign the Articles. Once you file your Articles, the secretary of state will review the filing, and If the articles are approved, the LLC will become a legal business entity.
Receive a Certificate from the State
The state will grant you a certificate that confirms the LLC officially exists after the LLC’s formation documents are filed and authorized. This certificate will allow the LLC to receive an Employer Identification Number (EIN), business licenses, and business bank account.
Create an Operating Agreement
An operating agreement is a document that defines the way your LLC will conduct business.
Florida doesn’t require your LLC to file an operating agreement, but it is a vital component of your business. Having an operating agreement is beneficial for various reasons, including resolving disputes that may arise over financial agreements and other potential litigation.
Get an Employer Identification Number
The nine-digit Employer Identification Number (EIN) is assigned by the Internal Revenue Service to identify your LLC for taxes. You can acquire your EIN by mail or online through the IRS.
The objective of an EIN is to assist with Filing and managing taxes at the state and federal level, Obtaining licenses and permits, opening a business bank account, and Hiring employees.
Obtain your Florida Business License
LLCs in various industries are obliged to obtain a Florida business license. Find out whether your industry or profession needs a business license by looking it up on the Florida Secretary of State’s website.
Establish a Bank Account
LLCs in Florida are required to have a bank account in the state in order to begin conducting business.
Employment
If your LLC has employees, you must comply with these employer obligations:
- Report all new employee hires or rehires Within 20 days of hiring or rehiring to the Florida Department of Revenue.
- LLCs must purchase workers’ compensation insurance as soon as the fourth person is hired.
- LLCs must Pay unemployment taxes.
All Florida LLCs must file an Annual Report annually and the first report is due in the year following formation.
To start a business in Florida, you’ll need to go through the Florida Department of State’s Division of Corporations. The Division of Corporations sets the rules, requirements, and costs to form an LLC in Florida. You’ll also need to follow the rules set by them if you want to run your out-of-state LLC in Florida.
We understand that creating an LLC in Florida and getting your business up and running comes with many challenges. Luckily, Damalion has a lot of experience in this area, contact us now to help incorporate your LLC in Florida with ease.
