When starting an LLC in Florida, the first step is to file the necessary paperwork with the Florida Division of Corporations. You’re supposed to submit the Articles of Organization online, in-person, or by mail, and it costs $125. For online application, try out the MyFlorida Sunbiz website. This document officially sets up your Florida LLC, and you’re now good to go with your business.
Here are the five steps to follow when forming a Florida LLC. Read on!
- Select a Florida LLC Name
First and foremost, you need to have a company name that’s readily available when forming an LLC in Florida. Start by searching the name on the Sunbiz Florida website. It would be best if you also chose a name with a web domain available to obtain an URL that matches your company name.
After that, you must follow the naming rules listed below for a Florida LLC.
- A company name includes; Limited Liability Company, L.L.C., LLC, Company, Co, Limited, or Ltd.
- A name that doesn’t mention any government agency like the FBI, Treasury, etc.
- Some words such as Attorney, Bank, and University may require additional approvals from the state to be a part of your LLC name.
- Choose a Florida Registered Agent
Take advantage of using a Florida registered agent if you don’t want to make mistakes when forming your Florida LLC, which can land you into trouble with the state agency through paying for fines or other unforeseen penalties.
What is a Registered Agent? – A registered agent is a company or an individual that acts on behalf of a business entity to send and receive official and legal documents. And the registered agent must be a resident or have a physical address in Florida, with the authority to conduct business in the state.
Using a registered agent attracts a yearly cost, but that outweighs the benefits you will get.
- File the Articles of Organization for Your Florida LLC
The most crucial step is filing the Articles of Organization online at the MyFlorida Sunbiz website. Still, you can also do it in-person or by mail through registering with the Florida Division of Corporation. It’s also referred to as the Certificate of Formation or the Certificate of Organization in other states.
When filing through the Sunbiz website by mail, you should only list LLC managers.
The Florida Articles of Organization filing fee is $125 non-refundable and payable to the Florida Department of State. There are no extra charges when filing in-person or mail.
The information you must submit when filing the Articles of Organization include:
- Name of your LLC.
- A registered agent – name, address, and signature.
- List of services to offer
- How your LLC will be managed (either manager-managed or member-managed).
- Pay the state filing fee.
Once the Florida Articles of Organization is approved, it becomes a public record.
- Create an Operating Agreement for Your Florida LLC
The state of Florida advises businesses to create an Operating Agreement to set things straight in their organization.
What is an Operating Agreement? It’s a legal document outlining the ownership and the structure of an LLC. It limits problems arising in the future and ensures everyone is on the same page when forming an LLC.
What can you include in an Operating Agreement?
- The owner of the company.
- The investors and other members.
- How it will be managed.
- Day-to-day operations and who is responsible for managing them.
- How future problems or conflicts should be resolved.
- How profits are shared, etc.
- Apply for an EIN
An EIN (Employer Identification Number), or sometimes called FTIN (Federal Tax Identification Number) or FEIN (Federal Employer Identification Number) is a must if you want to form an LLC in Florida.
What is an EIN? – It’s a 9-digit number issued by the IRS (Internal Revenue System) that identifies a business entity and keeps track of its tax reporting. In other words, it can also be referred to as an SSN (social security number) for the company.
Some of the reasons why an EIN in critical:
- Open a business bank account.
- File both federal and state taxes for your business.
- Hire employees for the company.
You can request an EIN free of charge from the IRS by mail or online, which is must easier for your Florida LLC.
Benefits of Starting a Florida LLC
Apart from registering your business efficiently, starting an LLC in Florida has several benefits that you can reap in the long-run.
Here are some benefits:
- Business credibility.
- Personal asset protection.
- Pass-through taxation.
- Ease of maintenance.
- Flexible management structure.
- Easy access to business loans.
FAQ About Starting a Florida LLC
What is an LLC? – It stands for Limited Liability Company and has a simple business structure as compared to a traditional corporation.
Can I Be my Own Registered Agent? – Yes, it’s so direct, primarily when you reside in Florida, and you have a permanent physical address.
How Long is the Processing Time of Starting an LLC in Florida? – First come, first served in that order, and so the processing time can take up from 2 to 4 weeks.
Will I Be Filing an Operating Agreement with The Florida State? – The Florida state is not involved in the creation or filing of an Operating Agreement.
Do I Need an SSN to Get an EIN? – No. You can request an EIN by filing and submitting Form SS-4 with the IRS.
Florida ranks as the number 1 state in lowest income taxes, and therefore, it’s the best place to launch your business. Use the carefully explained five steps above to start an LLC in Florida and reap benefits that come from such a business formation.