LLC Cost Florida: Everything You Need to Know
LLC cost Florida, or the cost of starting and maintaining a limited liability company in Florida, encompasses filing fees and tax rates, which can vary depending on your filing choices and what LLC form you elect to use. 4 min read
LLC cost Florida, or the cost of starting and maintaining a limited liability company in Florida, encompasses filing fees and tax rates, which can vary depending on your filing choices and what LLC form you elect to use.
In most cases though, forming a Florida LLC is both affordable and easy. Anyone interested in starting one will need to file the proper forms with the Florida Division of Corporations, meet the state’s LLC naming requirements, and pay all the associated fees. These fees are:
- The filing fee: $100.00
- The registered agent fee: $25.00
- The certified copy fee (optional): $30.00
- The certificate of status fee: $5.00
There are also annual fees associated with filing the state’s required annual report, and these are:
- The annual report fee (with supplemental fee): $138.75
- The annual report fee (after May 1st): $538.75
- The amended annual report fee: $50.00
Thus, to start a Florida LLC, the initial cost will range from $125 to $160,and the annual cost will range from $138.75 to $588.75, depending on date of filing and amendments. There are also additional fees for other optional filings,and all fees are subject to change, so one should check with the Florida Division of Corporations for any adjustments.
In addition to these fees, there are various specifications necessary for creating a Florida LLC, and these should be considered, as well. Understanding the entire scope of the LLC creation process will help you better decide if an LLC is right for you.
LLC Specifications Required in Florida
Florida has a number of specifications required for LLC formation. They are:
- Registration requirements.
- Articles of Organization must be filed with Florida Division of Corporations.
- Such articles must state the LLC’s address and name, the registered agent’s address and name, the member’s and/or manager’s addresses, names, and titles, and the LLC’s effective date if it differs from the filing date.
- Naming requirements.
- Each LLC must have its own unique name; no duplication is allowed.
- Use the Division of Corporations website to check to see if your desired LLC name is available.
- Formation requirements.
- Articles of Organization must be filed with the Florida Division of Corporations.
- Multi-member LLCs are recommended but not required to have an LLC operating agreement for their members.
- LLC operating agreements set out such details as the members’ roles and voting rights, the management structure, how adding and removal of members is handled, how the LLC may be dissolved, and how the operating agreement may be amended.
LLC Registration Process
There are a number of specific steps you must follow to register your LLC in Florida. They are:
- Choose a business name.
- Florida LLC names must end in “Limited Liability Company” or some variation thereof, like “L.L.C.,” “LLC,” or “Ltd. Co.”
- Some words are restricted, like “bank,” “attorney,” and “university,” and require special paperwork and a licensed individual, like a lawyer or doctor, to be in the LLC.
- Some words are prohibited, like “FBI,” “Secret Service,” and “Treasury.”
- Florida has no option for name reservation.
- It may be a good idea check if your desired LLC name has a similar web address (URL) or email address available. Even if you don’t want one now, you may want one in the future.
- Choose a registered agent.
- This is a person or corporation that accepts legal papers for the LLC. They must have a permanent Florida address.
- Get an employee identification number (EIN).
- If your LLC is multi-member, an EIN is required for tax purposes. These can be garnered from the IRS.
- Form an operating agreement.
- Florida LLCs do not have to have an operating agreement, but it is recommended if your LLC is multi-member.
- Such agreements are recognized by the State of Florida as governing documents.
- Get a Florida bank account.
- Florida LLCs must have a bank account in the state to operate.
- Get familiar with your legal obligations.
- Your LLCs annual report is of most importance here. Florida LLCs must file these to maintain their active status in the state. The filing window runs between January 1st and May 1st.
Florida Taxes for LLCs
Florida LLCs are considered either corporations, single-member LLCs, or limited liability partnerships for tax purposes and are thus subject to federal income tax classifications. Taxes for various LLC forms include the following:
- LLC treated as a limited liability partnership.
- These must file Form 1065 and show equal distribution of losses, profits, and credit on a Schedule K-1.
- LLC treated as a C corporation.
- These must file Form 8832 and elect to be treated as a corporation. They are then required to file Form 1120.
- LLC treated as an S corporation.
- These must file Form 1120S along with a report by each owner showing the equal distribution of losses, profits, and credit to the IRS.
- LLC treated as a sole proprietorship.
- These must report income and business expenses on the sole proprietor’s Schedule C 1040.
So along with your filing fees, LLC taxes will contribute to additional costs, but such costs will vary depending on your particular situation.
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