Certificate of Formation Florida
A certificate of formation Florida refers to a license issued by the state when starting a new business, containing all information about the company.3 min read
2. Certificate of Good Standing in Florida
Updated November 24, 2020:
A certificate of formation Florida refers to a license issued by the state when starting a new business, containing all information about the company. Each state has its own requirements for forming a limited liability company (LLC). The first step when starting a business is to understand the specific requirements in the state you are in.
The first decision a new business owner needs to make is how his or her company will be named. A proper name should be representative of the business's main activity. It should also be clearly distinguishable. In the case of LLCs, all names must end with either Limited Liability Company or an abbreviation of that. Also, words such as Loan, Bank, Bancorp, or Mortgage need special approval by the state's Office of Financial Regulation.
Choosing a Type of Company and Registering It
Depending on the company's goals, size, and leadership, it can be a sole proprietorship, a partnership, a limited liability company, or a corporation. No matter the choice, the new business must first be registered with the state and county.
In Florida, managers and members of limited liability companies must meet the following criteria:
- Any LLC must have at least one manager or member.
- There are no requirements as to where the members and managers have their residences.
- There are no age requirements when starting a business in Florida.
- The Articles of Organization must include all important information about the members or managers, such as their names and addresses.
An LLC is created in Florida through a document called Articles of Organization. This document must include some state-specific information, such as:
- The name and address of the company's registered agent. The registered agent must have a physical Florida address and is mainly responsible for accepting important tax and legal documents during normal office hours.
- The company's Federal Employer Identification Number, which new businesses must register with the IRS to get. The number will then be used by the company in all its transactions. For a single-member LLC, the owner's social security number can be used instead.
- A company bank account that will be used for all incoming or outgoing funds.
Certificate of Good Standing in Florida
The certificate of good standing is an official document issued by Florida's Department of State Division of Corporations and confirms that a business entity is registered to do business within the state. It is also called a Certificate of Existence, Certificate of Authority, or Certificate of Status. It is basically proof that a company is a legitimate business operating in Florida. It means all requirements are met and the company is free to do business in the state.
Any business registered in Florida, whether for-profit or nonprofit, foreign or domestic, will receive a certificate of good standing regardless of its level of compliance with the Department of State. You can obtain the document mainly through filing a copy/certification request form and mailing it to the Department of State in Tallahassee. The process time to do so typically takes seven to 10 days.
This certificate never expires. However, some entities might require a newer version of the certificate of good standing to confirm the validity of the document's information.
The main reasons a company needs a certificate of good standing are:
- Getting permission to do business in other states.
- Registering the business in a different state.
- Getting a specialized license in a specific industry.
- It is one of the requirements banks and credit institutions have when issuing loans or credit to a company.
For a company to receive a certificate of good standing in Florida, it must be registered with the state to do business, while also complying with all state regulations. The fee to receive the certificate is $8.75 for corporations or limited partnerships and $5.00 for limited liability companies.
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