We create step by step guide on how to form an LLC in Florida. Many people face difficulty in starting an LLC in FL. We cover everything that you need to file for a Florida LLC.
Limited Liability Company (LLC) is a corporate structure in which the owners, as well as the members, are not liable for company debts in any case. The liability of this type of company is limited by the share of owners & members. Nobody will be liable to anything more than the sum they invested, and this is a sure perk for everyone.
There is only one way (stated in this article) to start a limited liability company in Florida. If anyone comes to you and shows an easier way, then he will probably bluff you, and you will end up losing your money. So it is better to follow the genuine listed procedure to open an LLC. Let us not waste any more time in the introduction and move further to the main subject.
How to Start an LLC in Florida?
Starting a limited liability company anywhere in the USA has a lengthy procedure, which includes filing documents and doing some other crucial steps.
Subject a Name to your LLC
Getting a name to your limited liability company is the first crucial thing to do to start a Florida LLC. Now, you need to find a catchy name for your company that also complies with the requirements of the Florida Department of State. As in all the other states of the US, the name of your LLC must include a “limited liability company” or its acronym. The name of your LLC should be commercial and not related to any government agencies.
There are thousands of companies setting up, and it is difficult for a person to come up with a unique name that is not taken by any other company. I recommend using [Online Tool] to check if the name you are looking for is available or not.
Find an Agent
Every LLC is required to have a registered state agent as their company to act as a legal entity on behalf of the company. There are hundreds of corporations to nominate as a registered agent in Florida. An individual or corporation with a business legal entity can be the registered agent of your limited liability company.
Note: You can also become a registered agent of your LLC, but you must be qualified for the requirement of being an agent.
Filing the Florida Articles of Organizations
The most important step to do to register an LLC in Florida is to file the “Florida Articles of Organizations.” You can file the documents both online or send by mail to the Filing Section Division of Corporation. The person filing the document is required to state the name and address of the individual or individuals responsible for managing the LLC. If you leave the managerial section blank, then it will be assumed that the company is managed by all its members. The cost of filing these documents to the FAO is $125, paid to Florida Department of State, and is non-refundable.
File the Florida Articles of Organizations online by visiting their official website.
Besides, you can download & fill the form and mail it to the address mentioned below:
New Filing Section Division of Corporations P.O. Box 6327 Tallahassee, FL 32314
Create a Florida LLC Operating Agreement
An LLC Operating Agreement is a document that has critical & private information about the company’s legal entity. It is not a public document but is accessible to the members of the company. The Operating Agreement depicts information like members, investments, allocation of profits, and much more. Although it is not mandatory to have an Operating Agreement in Florida, professional advice to surely have one as it has many perks of having an LLC Operating Agreement.
Getting Tax Number or EIN
It is very necessary to have a federal taxation number or EIN (Employees Identification Number) for your LLC. Without an EIN, you cannot hire employees or save money by tax returns. The bank also asks for the EIN to open the account in the name of your LLC. Unlike filing other documents, getting an EIN is absolutely free of charge. You can get EIN by requesting them online or applying for it by mail or fax.
Mail Address: Internal Revenue Service Attn: EIN Operation Cincinnati, OH 45999
Fax: (855) 641-6935
Other Relevant Information
To get an LLC in Florida and make it stable, you are required to do some other things than filing several documents.
LLC’s Bank Account
If you use your bank account for the transactions done for the LLC, then you might be risking your personal assets. Although the liability of the members/owners is limited to their investment, everything that is in the name of LLC is a sure asset of the company and can be used to clear out debts. Therefore, you are required to create a bank account in the name of the LLC. This will protect not only you but also the business you are running smoothly. Opening a bank account will differentiate your transactions with the company’s transactions, and it will make it easier to file tax and other legal documents of the LLC.
Just like getting a bank account, it is important to have a credit card in the name of the LLC. It will separate your expenses plus also build a company’s credit history and goodwill.
Insurance of the Company
There are various types of insurance you can opt to keep your limited liability company safe & secure. Choosing insurance for the company will save it from risks, and the managers can focus more on innovation and growth.
LLC Tax Requirements
Tax requirements certainly depend on the nature or type of the company you are setting up. I have listed some common taxes you are required to pay.
It is one of the most common taxes among all, as every LLC will certainly require employees in the company. If you are forming an LLC in Florida, then you are required to register for the Florida Reemployment tax. Every new employee in your company will need to pay a certain tax according to their salary, and it will be filed in the name of your limited liability company.
You are also entitled to pay sales tax if your company sells goods or products and also you will be required to have a seller’s permit. You are not required to pay any fee or charge to get seller’s permit, and you can apply for it online by clicking [HERE]
The seller’s permit will delegate you the authority to charge tax on the taxable sales from the buyer or consumer. Apart from physical products, a company is also entitled to file tax in the business exchange of services too.
Note: If the type of your business is different and involves more than the mentioned forms then you can check about Florida Taxes comprehensively [HERE]
Starting an LLC in FL is not everything; you are also responsible for the life of the company’s term, and for that, you will need to comply with the terms of the Florida Department of State. You are required to file an annual report of your limited liability company to the Florida Department of State. This process will cost an expense of $138, which is non-refundable.
You can file the annual report of your LLC online through the official website
Critical Sudden Dissolution
A limited liability company might go through sudden dissolution if it fails to file any document to the Florida Department of State. A good registered agent can stop issues like sudden dissolution from happening. A responsible agent will alarm you before the date of any filing or even file it on behalf of the limited liability company. The sudden dissolution of LLC might takeaway the limited liability protection of the company.
I can certainly understand the pain of getting all these complicated things done to start a limited liability company in Florida. But following the mentioned steps is the only way to set up an Florida LLC, and all the different methods are fake or not reliable. There are different agencies in Florida, who charge to do filing documents for you. But following the legit method by yourself is a lot better than wasting hundreds of dollars extra on getting it done by someone else.
Many people get confused about how to get an llc in their state. Our team decided to write a guide on LLC formation in different states. Check out our article on starting LLC in texas and LLC California.