Here are the key steps to take when setting up an LLC in Florida.
Have you ever wanted to start an LLC in Florida but didn’t know how? This handy guide about how to form a Florida LLC in five easy steps will help simplify the process. An LLC, or limited liability company is a business structure that has the benefit of shielding its owners from personal liability while doing business as a company. On the plus side, Florida does not typically tax LLCs.
We put together the fundamental steps to take when considering to set up a business in Florida.
1. To Name Your LLC company in Florida
When it comes to name your new company in Florida, there are a few requirements you have to meet. Remember your company will always include LLC after the registered name.
Your company name cannot be a replica of another existing company in the Florida registry, make sure it is unique.
There are a few words that need a licensure to be used in your company name, such as “bank”, “attorney”, “credit union” Etc.
The name of your company cannot refer to a governmental entity such as State Department, CIA, FBI etc.
In case of any doubt or special requirement you can always get in touch with us at firstname.lastname@example.org
2. To Appoint a Registered Agent
When setting up your business in Florida you will have to appoint a registered agent. The agent is authorized to receive tax forms, legal documents and service of process for your company. The registered agent could also be yourself, an employee or another company that offers a service of acting as a registered agent on behalf of your company.
The registered agent must:
- Be able to provide registered agent services
- Be able to provide services during regular business hours
- Have a physical Florida street address (PO Boxes are insufficient)
- Determine Whether You Need To Obtain a Florida Business License
Some industries require a business license to operate prior to starting an LLC in Florida. The Department of Business and Professional Regulation licenses professionals in various sectors, such as architecture and real estate. For a more complete listing of those professions that require licensure, visit the Florida Department of State licensure links.
3. Prepare and File Your Articles of Incorporation
One of the most important step is to fill your company’s articles of incorporation with the state’s Division of Corporations. Kelmer Miami will support you during this process. This is important as filling your articles of incorporation establishes your authority to do business as an LLC company in Florida.
These articles must include the following details:
- The street and mailing address of your LLC’s principal place of business
- The LLC’s registered agent’s name, address and signature
- The name and address of the LLC managers
- If different from the filing date, the effective date of the LLC
- An authorized representative or member’s signature
- Foreign LLCs, which are companies that want to do business in Florida but were incorporated in a different state, must file a form called Qualification of Foreign LLC. These companies must also pay a $125 filing fee before starting an LLC in Florida and must also receive a certificate of good standing from their original filing state.
Receive a Certificate from the State
Once the submitted documents will be officially approved, you will receive a notification from the State. This certificate will enable you to obtain an EIN which is an Employer Identification Number. Thanks to the EIN you will be able to open a bank account and to procure business licenses for your company.
Prepare Your Operating Agreement
The Operating Agreement states the ownership of your company and how you intend to conduct your business in the State of Florida. This is not a mandatory step, but it is a document that can come at hand.
4. Choose How You Want to be Taxed
A Limited Liability Company in Florida can file taxes either as a pass-through entity or as a corporation. A pass-through enables an LLC to pass its tax liability through the company to your personal taxes. As such, an LLC’s gains and losses will be reported on your personal income tax (keeping in mind that Florida has no state income tax).
Otherwise, if you file taxes as a corporation, you will need to pay 15.3% in self-employment tax among other taxable fees for your employees.
5. Remember To File Your Florida LLC Annual Reports
In order to maintain your active status with Florida as an LLC, you must e-file an annual report with the Division of Corporations. The filing fee for each report is $138.75 and is due between January 1 and May 1 every year to avoid late penalties. If you do not file by the third week in September every year, you could lose the ability to operate in Florida as an LLC.
If you are thinking of setting up your business in Florida, you can book a first introductory call with our consultants, emailing us at email@example.com or find more info on our office page