How to Start An LLC In Florida
Learning about the process of starting an LLC in Florida helps entrepreneurs to both launch and maintain thriving businesses. If you don’t rush through the process of launching a Florida LLC, you can use the formation process to your company’s long-term advantage. For example, the name of your LLC can impact the strength of your branding efforts right from the start.
Read on to learn about the step-by-step process of forming a Sunshine State LLC. Florida offers a welcoming business climate for companies of all sizes, so you’ve chosen an excellent place to realize your entrepreneurial vision.
Step-by-Step LLC Formation
Forming an LLC comes down to following a few easy steps, outlined below.
Step One: Decide if an LLC Is the Right Business Structure
Want to know how to start an LLC in Florida? Before you can move through the steps of forming your LLC, it’s important to confirm that an LLC structure is the best option for your business. Although there are many benefits to starting an LLC in Florida, some companies are better served by other legal structures.
When considering your options you may want to think about the following:
- How you want to manage your business
- Your taxation preferences
- Whether you want to be burdened by significant reporting requirements
- The importance of personal liability protection
- Whether you plan to grow and expand your operations
Sole Proprietorships and Partnerships
Sole proprietorships are owned (and usually operated) by a single owner. Partnerships are owned by multiple parties. Each of these structures tends to be well-suited for small businesses that operate on a local basis. Although some partnerships are required to register with the state, sole proprietorships are not. Both structures are taxed personally, which means that owners report profits and losses on their personal tax returns.
Inside Scoop: These structures don’t afford owners personal liability protection, but they feature flexible management structures and are very easy to form.
Corporations
A corporate structure is the most rigidly regulated business option available to you. Corporations take a lot of work to register because they are governed by a strict management formation known as a board of directors. Instead of being owned solely by company visionaries, a corporation is owned by everyone who owns shares in the business.
Corporations are taxed as distinct entities and afford shareholders maximum personal liability protection. This structure is well-suited to larger-scale operations set to expand widely and rapidly.
Limited Liability Companies
Limited liability companies are often described as the “best of both worlds.” Like sole proprietorships and partnerships, they feature flexible management structures, are relatively easy to form and aren’t subject to broad mandatory reporting requirements. Like corporations, they feature personal liability protection for owners (called members).
A Florida LLC can be taxed on members’ personal tax returns or it can be taxed as a corporation. If you’re interested in insulating your personal assets from liability, and you like the flexibility and control associated with sole proprietorships and partnerships, forming an LLC may be your best option.
Inside Scoop: Florida doesn’t impose a state income tax on businesses, so an LLC may be more profitable than usual when operating in the Sunshine State.
Step Two: Pick a Name for Your Florida LLC
Before you can file registration paperwork with the state, you’ll need to choose a formal name for your LLC. You can also register a less formal title to serve as your “doing business as” (DBA) name, but this step is optional.
In Florida, formal business names are governed by a few legal requirements. For example, your LLC’s legal name must include the abbreviation “LLC” or “L.L.C.,” or the full descriptor “Limited Liability Company.” Also, your name must be distinct from all other business names currently used in Florida. This distinguishability requirement helps to protect company branding.
Before you choose a formal name (and a DBA name, too, if you like) for your LLC, complete a Florida LLC search and then run a nationwide trademark search. The first search will determine whether your preferred name is both available and distinguishable from those of other Florida companies. The second search will help you steer clear of using any names that are protected by similar companies located in other states.
Inside Scoop: Most states allow aspiring business owners to reserve company names for a few months to allow time for trademark searches. Florida doesn’t permit name reservations.
Step Three: Choose a Registered Agent for Your Business
Starting an LLC in Florida also involves naming a person or company as a registered agent for your business. A registered agent receives official government mail and documentation related to lawsuits on behalf of a business. If you choose an individual to act as your LLC’s registered agent, they must be a resident of Florida. If you choose a business, that company must be authorized to operate in Florida. In either case, your registered agent must maintain a physical Florida address.
Inside Scoop: Some states allow LLCs to act as their own registered agents. Florida doesn’t permit this arrangement.
Step Four: File Articles of Organization
This step is critical to starting an LLC in Florida because your business can’t lawfully operate in the Sunshine State until you’ve filed articles of organization for your company. This paperwork allows the state to formally recognize the existence of your business. Also, don’t forget your filing fee.
Before filling out this paperwork, you’ll need to gather the following information:
- The legal name of your Florida LLC
- The principal place of business address for your company
- Your company’s mailing address (if different than its principal place of business address)
- The name, address and signature of your LLC’s registered agent
- A statement addressing your LLC’s purpose
- The signature of someone acting as an authorized representative
- A name and email address for the purposes of future correspondence
Inside Scoop: Including the names and addresses of LLC managers or authorized representatives is an optional step. However, you may not be able to obtain Florida workers’ compensation coverage or open a business bank account if you don’t provide this information for the Department of State’s records.
Generally, the effective filing date is when the Division of Corporations receives your articles of organization. Florida will recognize an alternative effective filing date of no more than five business days before or 90 days after your articles of organization are received. You’ll need to specify the date of your choice if you need an alternative effective filing date.
If you need to amend your articles of organization for any reason, such as changing the address of your Florida LLC or adding a new member, you can complete an amendment form and pay a small filing fee.
Step Five: Obtain State and Federal Business ID Numbers
Once your business is formed you can apply for your LLC’s employer identification number (EIN). This tax ID number is like a Social Security number for your business and functions similarly.
When the government wants to verify your LLC’s unique identity for tax purposes, reporting and legal reasons, it will ask for this number. Similarly, creditors and vendors may ask for this number to research information pertaining to your company’s legal and financial history. You’ll also need it before you can hire employees, take out a business loan or open a business bank account.
Step Six: Execute an LLC Operating Agreement
An operating agreement isn’t required as part of the process of starting an LLC in Florida. But, even though it’s not mandated, it’s still a good idea.
A signed operating agreement functions as a legally-enforceable contract. In this document, you’ll outline your ownership responsibilities and other important understandings concerning operations of your Florida LLC. Taking time to draft this agreement now can save you from costly legal misunderstandings and infighting down the road.
When drafting your operating agreement, you may benefit from addressing the following subjects:
- How your LLC will be taxed
- The percentage of the LLC owned by each member
- Member, manager, and investor rights, responsibilities, duties and powers
- How and when meetings will be called
- How and when your LLC can be dissolved
- Voting procedures
- How distributions and losses will be divided
Step Seven: Get Ready to Open Your Doors
When you began dreaming of owning your own business in the Sunshine State, you may have wondered, How long does it take to form an LLC in Florida? While the process of forming your Florida LLC only takes a few steps, getting your business off the ground is another matter.
Starting an LLC in Florida (successfully!) involves important to-dos, such as marketing, funding, insurance, banking and more. Thankfully, Florida offers many online resources to get you started.
As you begin researching your next steps, work through these important considerations to gain some momentum for your new company.
Small Business Funding Opportunities
All too often, aspiring business owners are under the impression that securing a bank loan is the only way to fund their vision. Depending upon the size of your business, what goods or services you’ll be selling and your industry type, you may have several options to choose from.
From securing a small business loan to applying for state grants, you should consider all options available to you before committing to a funding plan. You might even qualify for the state’s microfinance or business credit initiatives. By researching diligently and leaving no stone unturned, you may be able to finance the launch of your Florida LLC far more easily than you’ve previously imagined.
Marketing and Branding
Marketing and branding can help you to cultivate awareness of your company and build customer loyalty. You’ll need to consider how every move you make when preparing to launch, from selecting a name and logo to advertising your grand opening, can affect the public’s perception of your operations.
Get creative and don’t forget to keep Florida’s uniqueness in mind when building a marketing and branding strategy. For example, you probably want to avoid launching a massive outdoor marketing campaign in beach towns at the height of hurricane season.
Everything you do may impact a client’s sense of whether your operations are professional, well-run and appealing. Use this as an opportunity to make an impression at every turn.
Insurance Matters
Choosing a Florida LLC business structure will largely protect your personal assets from seizure in the event of a lawsuit or another business-related financial liability. But, insulating your personal assets isn’t enough.
Whether you’re starting an LLC in Florida as a single member or as a multi-member team, you’ll need to get business insurance right away. Without insurance, a natural disaster, lawsuit, employee injury or a host of other unforeseen circumstances can wipe out everything you’ve worked so hard to build. Don’t take chances. Get insurance that will cover actual losses before you open your doors.
Build an Online Presence
When potential clients or customers want to know more about your Florida LLC or are searching generically for your goods and services, they’re almost certainly going to hop online. If you don’t reserve a memorable domain name, build a solid website and make your presence known on social media, you could miss out on valuable business opportunities.
Make sure to secure your formal and DBA names and conduct a nationwide trademark search for them before you choose a URL for your site. Otherwise, you may start building an online presence for a name that isn’t available for registration in Florida or is already associated with the name of a competitor located in another state.
Starting an LLC in Florida FAQ
Does Florida allow professionals to form PLLCs?
If your Florida LLC will be providing professional services, such as accounting or medical services, you may opt to file a professional limited liability company instead of starting an LLC in Florida.
To form a PLLC, you’ll need to take a few steps beyond those listed above:
- Your formal company name must include the phrase “professional limited liability company” or either of these abbreviations: “PLLC” or “P.L.L.C.”
- You must produce the professional license for each individual serving as a professional member of your LLC
- You should check with the relevant state licensing board for your profession to ensure that you’re in compliance with all of their business requirements
Is there anything else I need to do right away?
Florida requires new LLCs to comply with some requirements that are unique to the state’s process. For example, LLCs in Florida can’t begin conducting business until a business bank account has been opened in any given LLC’s name. To ensure compliance with Florida’s unique laws, make sure that you take all of the following steps that apply to your business as soon as they become applicable to your situation:
- Report the hiring of any employees to the Florida Department of Revenue within 20 days of their hire or rehire date
- Register with the Florida Department of Revenue if you’ll be selling taxable goods or services
- Purchase Florida workers’ compensation insurance as soon as you have more than three employees on your payroll
- Start paying the payroll tax Florida uses to fund state unemployment insurance
- Acquire a business license, if required by your industry or occupation
How do I register a foreign LLC in Florida?
If you’re not starting an LLC in Florida but want to do business in the state, you’ll need to register as a “foreign” LLC. You can submit a filing fee, a current certificate of good standing from your company’s home state and a Qualification of Foreign LLC form. You’ll also need to take several of the steps outlined above concerning the formation of new LLCs, but not all of them. The instructions for the form you’ll need to submit outline all of these actions in detail.
Ready to Put Your Knowledge of Starting an LLC in Florida into Action?
Online Florida LLC formation services help to streamline the process of registering an LLC with the state. If you’re ready to launch your LLC, using the best online LLC filing service will help to ensure that you don’t miss any steps.
Legal Disclaimer: This article contains general legal information but does not constitute professional legal advice for your particular situation and should not be interpreted as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.
