Florida LLC: Everything You Need to Know
Florida LLCs are reasonably priced, simple to form, and should register with the Florida Division of Corporations by submitting mandatory paperwork and fees.3 min read
2. Florida Limited Liability Company
3. Name Your LLC
4. Choose a Registered Agent
5. File the Articles of Organization
6. Create an Operating Agreement
7. Obtain an EIN
Starting a Florida LLC
Florida LLCs are reasonably priced and simple to form. Companies should register with the Florida Division of Corporations by submitting the mandatory paperwork, fees, and assembling all naming and formation necessities. An LLC with multiple members can also be strongly recommended to have an LLC operating on a formal agreement among its members.
An LLC is a business that offers the limited liability of a corporation combined with the management methods of a partnership; therefore, it is sometimes referred to as a "hybrid" business model. Members could include people, companies, different LLCs, and international entities. One advantage of an LLC is that there isn't a high number of members.
Curiosity about LLCs has increased recently, and business owners are seeking the extra advantages LLC status can bring:
- Limited legal responsibility of the corporate owners
- Safety for LLC members from the claims of collectors
- Safety from private legal responsibility concerning claims pertaining to supervisory authority over the business
- Much fewer formal business requirements and better flexibility within the operation of the enterprise
- Tax benefits for the enterprise and its owners — both state and federal tax benefits
Florida Limited Liability Company
To create a Florida limited liability company (LLC) OR if you’ve been rejected for online submission:
- Review the directions for submitting the Articles of Organization
- Collect all data required to finish the application
Name Your LLC
The primary and most vital step in beginning your LLC is selecting a name. Conduct a little research to ensure that the identity you select is suited to your enterprise and is easily searchable by potential customers.
Comply with the naming rules. Your entity name should comprise the phrase “limited liability company” or the abbreviation L.L.C. or LLC. Restricted phrases (e.g. Bank, Lawyer, College) require extra paperwork and will require a licensed authority, akin to a health care provider or lawyer, to be a part of the LLC. Prohibited phrases include names that would confuse the name of your LLC with a federal or state company (e.g. FBI, Secret Service, Treasury).
Make sure the identity is not already taken by doing a name search on the State of Florida website. Verify to see if the identity of your LLC is available with the intention to reserve your business name.
Even if you do not plan to create a website at the moment, it's possible you'll wish to purchase the name as a way to prevent others from buying it. An email address is also an issue to consider when selecting a name.
Choose a Registered Agent
You might be required to appoint a Registered Agent within your Florida LLC. A registered agent is an individual or business nominated by your organization to formally obtain and ship papers on your behalf together with annual state filings. The registered agent must be a resident of Florida or an organization licensed to transact enterprises in Florida. You can elect a person inside the firm, including yourself.
File the Articles of Organization
To register your LLC, you will have to file the Articles of Organization with the State of Florida. When doing so, you must determine whether your LLC will be member managed or supervisor managed. If you are moving your present LLC to the State of Florida, you might be forming a foreign LLC. The same rules should hold regarding the following:
- The LLC's name and address
- The name, address, and signature of the LLC’s registered agent
- The names and addresses of the LLC’s managers
- The effective date of the LLC (if different from the date of submission)
The submission charge for the Articles of Organization is $125.
Create an Operating Agreement
An operating agreement is a legal document outlining the possession and working procedures of your LLC. The operating agreement allows you to form monetary/working relationships with co-owners into a permanent system appropriate to your enterprise. An operating agreement is not required to form an LLC in Florida; however, it's good practice to have one.
Obtain an EIN
The Employer Identification Number (EIN), or Federal Tax Identification Number, is used to establish a business entity. It's basically a social security number for the organization. An EIN is required for the following: to open a business checking account for the firm, for federal and state tax functions, and to hire workers for the organization. An EIN is obtained from the IRS (free of charge) by the business owner(s) after forming the corporation.
If you need help starting an LLC in Florida, you can post your legal need 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.