While it’s true that the sunshine state ranks on top for its pro-business tax policies, tracking Florida LLC fees can be overwhelming even for a small business owner. Besides incurring late fee penalties, non-compliance could put you at risk with state law. Fortunately, our trade experts curated this post dedicated solely to help you save money during your LLC formation.
Formation Costs for a Florida LLC
Business Name Reservation
It’s no secret that one of the first steps you should take when forming a limited liability company is to pick a unique LLC name to represent your business. Your chosen label shouldn’t be similar to existing businesses if you don’t want delays during the submission of the Florida Articles of Organization.
Our team advises searching through the state’s public database to ensure that no Florida LLCs have the same name as your business entity. Unlike other states, they don’t offer name reservations, so your chosen option will remain available until the official registration process.
Articles of Organization
Obviously, there are crucial requirements you need to submit to the Florida Secretary of State when you form an LLC. And before you can legally do business transactions, you have to file articles of organization inclusive of basic information such as company name, business address, mailing address, registered agent, etc.
After filling up, you may proceed to submit via mail at the New Filing Section, Division of Corporations. You can also file online on the Florida Department of State website with a $125 filing fee.
Certificate of Status
Another formation document you need upon forming an LLC in Florida is the Certificate of Status. When business entities open an LLC bank account, this certificate serves as proof of good standing. A Florida LLC may request this from the Secretary of State with a $5 filing fee.
Operating Agreement
Although operating agreements aren’t a mandatory internal document, curating one for your Florida LLC will help LLC’s managers to handle management decisions and business structure policies [1].
Drafting your own LLC operating agreement has no charges, but we highly recommend seeking a professional service to prevent legal lapses.
EIN Registration
After filing your LLC’s articles of organization to the Florida Division of Corporation, the next step is acquiring an employer identification number to be taxed accordingly or open a business bank account. This procedure doesn’t entail charges and could be filed online, but purchasing a premium service could incur processing expenses.
Business License
For an LLC in Florida to conduct business, there are permits and licenses you should acquire at the federal, state, and local levels. You can check the specific business licenses required by the government through the Division of Library and Information Services.
Registered Agent
Admit it or not, electing a reliable registered agent is essential to stay compliant. While you can be your own registered agent, missing state documents could incur penalties; that’s why we suggest hiring a professional registered agent service.
Not only are they experts, but registered agent services also allow you to use their mail address instead of your company’s physical street address in the public records. When you accept service from these companies, the annual registered agent fee ranges from $0- $300. Of course, it is a separate expense from the original LLC formation costs and fees you have to pay.
Foreign LLC Registration
Moving on from the registered agent fee, we have the foreign LLC registration procedures. Unlike a domestic Florida LLC, you’ll need to file an Application for Authorization with a $125 fee.
Other Taxes
Known for its pro-business tax policies, Florida doesn’t impose corporate tax returns, collect individual income tax, or require federal tax. Instead, expect sales tax fees if you sell merchandise or unemployment insurance taxes if you hire employees.
Your taxation requirements also depend on the status of your entity. If you’re a single-member LLC, you’ll be taxed as a sole-proprietorship company; the same rules apply for s-corporation and c-corporation.
(For less hassle LLC formation, you can also seek the help of a professional LLC formation providers here)
Florida LLC Annual Fees
Annual Report
Although Florida poses tax perks, you are still obliged to submit annual reports online every May 1 of the current year. The Florida annual report fee for this procedure amounts to $138.75, which you can pay every winter/spring.
Importance of Paying Annual Fees
Consistently paying annual Florida LLC fees not only maintains good standing with the state but also gives you liability protection perks. If you fail to settle your annual report fee or sustain a registered agent, expect hefty penalties and non-compliance risks.
(To get you through the formation process, you can check the top-notch online incorporation service providers here)
FAQ
What is the annual fee for an LLC in Florida?
The annual fee for an LLC in Florida is $138.75. These expenses include the processing fee incurred in filing your periodic report to the state. However, if you signed up for a statutory agent service provider, additional monthly or annual costs may incur on top of those fees.
Conclusion
Listing all these Florida LLC fees may be a bit overwhelming, but rest assured that as long as you remain consistent with your financial obligations, your business will surely operate smoothly. Also, as our trade experts would say, there’s no shame in seeking professional services if it means you can comply with the requirements efficiently.
For more options, you can also check out the LLC formation costs and yearly fees in the following states:
