Florida LLC Guide | A Comprehensive Write-up For Beginners

Filed in Business by on April 11, 2020 0 Comments

It’s quite unfortunate that a lot of people don’t do thorough research on things before starting. Making plans to start an LLC in any state needs a thorough finding because each state has its own requirements and fees.

Believe me; you can’t just wake up to start an LLC without knowing the necessary things. If I may ask; what do you know about LLC?

Do you know that forming an LLC is the simplest way of structuring your business to protect your personal assets in case your business is sued?

Now, you have an idea of why you should start an LLC in Florida.

Florida LLC Guide

A limited liability company (LLC) is a business entity that offers certain legal protections and rights to its owners. An LLC is either a corporation or a sole proprietorship/partnership.

1. Florida LLC Information

Limited liability companies (LLCs) in Florida are affordable and easy to form. And as with other states, the State of Florida has some unique, state-specific requirements.

Interested parties must register with the Florida Division of Corporations, by filing the necessary forms, paying the necessary fees and meeting all naming and formation requirements.

The specifications required of Michigan LLC are as follows:

  • Registration

File your Articles of Organization with the Florida Division of Corporations. The form must be accompanied by a cover letter, which has the applicant’s name, address, email, daytime number, and the LLC’s name.

Don’t forget to include with your submission the filing fee that is about $125. Fees can change, check with the Florida Division of Corporations for the most recent fees. You may submit the forms online or by mail. The forms must include the following information:

  • LLC name and address
  • Registered agent name, address, and signature
  • Name, address and title of members and/or managers
  • Effective date, if other than the date filed
  • Signature of an authorized representative or member

A letter of acknowledgment will be released to the applicant upon registration of the LLC.

  • Forms And Fees

LLC registrants are required to file Articles of Organization with the Florida Division of Corporations. All submissions must include the appropriate filing fee, which may be paid by check, money order or credit card.

  • Timeline

Processing time is usually between two to 14 business days, depending on the mode of payment for filing fees and other business documents.

  • Naming Requirements

LLC naming requirements can be confusing. However, the easiest way to make sure that your LLC name will be approved is to make sure that it is distinguishable from other LLCs and includes specific words required of LLCs. You may opt to have a preferred name checked for availability before filing your LLC formation documents with the Florida Division of Corporations.

  • Formation Requirements

To form an LLC, a registrant must first file the Articles of Organization with the Florida Division of Corporations. All submissions must be accompanied by the appropriate filing fee and may be done online or by mail.

Next, an LLC with more than one member is also strongly advised to have a limited liability company operating agreement among its members.

This operating agreement contains the terms entered into by the members of the LLC and governs such critical items as the roles of each member, voting rights, who manages the LLC, how members are admitted or removed, dissolution of the LLC and procedures for amending the LLC operating agreement itself.

2. Cost to Form an LLC in Florida

To form a new LLC in Florida, you need to file Articles of Organization with the Florida Secretary of State’s office and pay a $100 filing fee. If you need a certified copy of the Articles of Organization, there is a $30 fee.

There is a $5 fee for a Certificate of Status also called a certificate of good standing in some other states which is simply a written verification that your LLC is currently authorized to do business in Florida.

A Certificate of Status or a certified copy of the Articles of Organization is sometimes required for business transactions such as opening a business bank account or obtaining credit.

Your LLC must designate a registered agent in Florida. If your LLC meets the requirements for having a properly staffed office in the state, you may be able to have an owner or employee serve as the in-house registered agent.

Otherwise, you need to hire an outside registered agent, which usually costs between $50 to $500 per year. You must also pay a registered agent fee of $25 to the state, regardless of whether you have an in-house or outside registered agent.

3. How to Start LLC in Florida

  • Choose A Suitable Name For Your Business

You can choose any name as long as it ends with “Limited Liability Company” or any variation of its abbreviation—e.g., LLC, L.L.C. or Ltd. Co.

  • There Is No Name Reservation For Florida

However, a preferred name may be checked for availability by accessing the Division of Corporations website.

  • Assign An Agent For Service Of Process (Also Referred To As The Resident Agent)

Registered agents are individuals or corporations authorized to do business in the state and which have permanent addresses in Florida. Registered agents accept legal documents on behalf of the LLC and make sure its members are notified.

  • Get An Employer Identification Number (EIN) From The IRS

If there are two or more members in your LLC, your company will need to obtain an EIN from the IRS, for tax purposes.

  • Create An Operating Agreement

Although LLCs in Florida are not required to have a limited liability company operating agreement, it is wise to have one in place with other members should your LLC have more than one member. The State of Florida recognizes limited liability company operating agreements as governing documents.

  • Open A Florida Bank Account

LLCs in Florida are required to have a bank account in the state in order to begin conducting business.

  • Familiarize Yourself With The LLC’s Continuing Legal Obligations, Specifically Annual Reports

Annual reports are filed online between January 1 and May 1. All LLCs are required to file an annual report in order to maintain an active status in Florida. The filing fee for annual reports is about $138.75 and may be paid by credit card, debit card, check or money order.

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There is a late fee that is about $400 if you submit your report after May 1. Check with the Florida Division of Corporations to get the most current fees. Continuing legal obligations may include, but are not limited to, state taxes, annual reports and so on.

4. Florida LLC Annual Fee

It’s better to know the annual fee of how Florida LLC is being charged. This alone will make you budget for everything at a time which will help reduce the stress of thinking much.

Florida requires LLCs to file an annual report. Annual reports are filed online between January 1 and May 1 and the filing fee is about $138.75.

5. Where to Get Tax ID Number in Florida

An Employer Identification Number (EIN), also called a Tax Identification Number, is a nine-digit number that identifies a business entity. It is for tax filing purposes and acts as a Social Security number for business entities.

You need one if you have employees, have a partnership or corporation, withhold taxes on income and have a Keogh plan.

You can get an EIN from the Internal Revenue Service and it is free. The IRS provides several application methods.

You can complete each in less than 20 minutes. The amount of time necessary to receive your EIN depends on the application method you select.

I believe this informative article has answered most of your frequently asked questions about Florida LLC? If you still have any questions or contributions you can drop a comment below.

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