Cost of LLC in Florida: Everything You Need to Know
An operating agreement will outline business' structure and covers aspects such as the owners' information and the terms of operation for your LLC. 3 min read
Updated July 29, 2020:
How to Form an LLC in Florida
You may wonder about the cost of an LLC in Florida. First, formation of an LLC in Florida requires:
- $125 filing fee
- Operating agreement
- Articles of Organization
An operating agreement will outline business' structure and covers aspects such as the owners' information and the terms of operation for your LLC. In Florida, LLCs can be either be managed by a manager or by its members. If your LLC is already registered in another state, you extend your business into the state of Florida and form a foreign LLC. Doing so allows you to operate out of multiple jurisdictions under the same LLC.
Forming an LLC in Florida can take up to two weeks if filed on paper and up to two days if you file online. After you make sure your intended business name is available, immediately register your LLC to avoid unnecessary fees and processing delays.
A physical address is required to complete the LLC application. You must also have a registered agent, a person (or a business) that is responsible for sending and accepting legal papers for your LLC. These could include state filings and paperwork as well as service of process papers, should your business be sued. A registered agent must be a resident of Florida or a registered corporation within Florida. Otherwise, you can choose to be your own registered agent, or a member of your LLC can act as the registered agent.
Your application should include the names and contact information of each person who is eligible to manage the company. You can choose to fill in today's date (or the date of your choosing) as the effective date for your LLC. If this section is left blank, the effective date will default to the date when your filing is processed by the Division of Corporations. Lastly, you will be asked if there are any other provisions you request for your business. Generally, this section should be left blank.
A printed signature is required from at least one member or authorized representative. Online filers can submit and pay for their application online and print out a copy for their records. Paper filers should submit a check along with the printed copy of their filing. Once the Divisions of Corporations receives the paper copy in the mail and processes it, they will send back a filed copy of the Articles of Organization.
When the paper copy is returned by the Divisions of Corporations, the filing is considered complete and the LLC has been formed. The next step is to acquire a federal tax ID number and employer identification number (EIN) for the LLC. You can do both on the IRS' website, or you may submit an SS-4 form and receive these numbers by mail. Both numbers serve as identification for the LLC, and they allow the IRS to track income and expenses.
Each year on May 1st, businesses must file annual reports with a fee of $138.75. Reports must be filed by this date no matter when you first formed the LLC in the year. For instance, if an LLC was formed on May 2, 2018, the members must submit their first report on May 1, 2019. Companies that miss the deadline are charged a $400 penalty. If you don't file the report by September 1st of the year the report is due, the LLC will automatically be dissolved.
All LLCs must denote their entity structure within their name. For instance, "LLC", "L.L.C.", or the words "Limited Liability Company" must be included in the corporation's name. However, some words trigger additional scrutiny. Using "bank" or "attorney" in your business title, for example, will require extra paperwork. Other controlled phrases include those that could be confused with government agencies. Use of the words "treasury" or "FBI" in your title is a few examples.
Once all of your paperwork has been filed, you'll receive a Certificate of Good Standing that proves your LLC is legally able to operate. This can be helpful when you need to get a loan, acquire funds from lenders or investors, register your LLC in a different state, or obtain additional licenses to legally operate your business.
If you need help with filing for an LLC in Florida, you can post your job on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.