Starting an LLC in Florida is extremely easy. In fact, the state of Florida provides people with one of the easiest pathways to forming a limited liability company. It’s really convenient because it only takes 5 simple steps, and as long as you follow all of the tips that we provide you with here today, you should not have any problems.

For those people who don’t know, LLC stands for limited liability company. This is a specific type of business structure that is available in every state. What’s really beneficial about an LLC is that it protects the owners from personal and financial liability in the event that there are issues with the company.

Perhaps one of the biggest benefits is that limited liability company owners in Florida don’t have to pay state taxes on business profits, thus making this business format very cost effective in Florida. The state of Florida also has different management structures for limited liability companies.

Although there may be some regulatory and competitive challenges, in the grand scheme of things, Florida is one of the best states to have a limited liability company. Today, we are providing you with a step-by-step guide on how to start an LLC in Florida.

Step 1: Choose a Business Name

The first thing you need to do to form a limited liability company in the state of Florida is choose a business name. Interesting to note is that the state of Florida places many different restrictions and requirements on the name. The following are all things you need to consider when choosing a company name for your LLC in Florida.

  • Your company name must include Limited Liability Company, L.L.C., or LLC, in the name. This is a requirement.
  • The name can in no way imply that the business is organized for some kind of unauthorized or illegal purpose.
  • The name of your LLC cannot be related to a government agency, such as the FBI or CIA.
  • If you want to include certain words, such as credit union, lawyer, bank, or attorney, you require proper documentation and certification.
  • The name of your LLC in Florida must be totally unique. Other people have to be able to distinguish it from other businesses already registered in Florida. We recommend doing a Florida business name search to see if your business name is available or if you need ideas you can use our AI-powered business name generator for unique ideas.
    Pro tip here is that if your business name is already taken, you can always switch the order of the words. For example, you could change green balloons LLC to balloon green LLC.

Although these are the legal requirements, there are also other things you want to consider when choosing a name for your LLC in Florida. Of course, a name for your business should be easy to remember, catchy, and easily marketable.

Domain Name Availability Check

However, even more important is that the name of your business is also available online in the form of a domain.

Any good business worth its money nowadays needs to have a website, and of course, the website name or domain should be the same as your business name. Therefore, do a domain name search to see if the domain name in question is available. If it’s not, you may want to reconsider your business name. Our domain name generator can help you with an unlimited number of ideas according to your industry and also it can instantly check for a domain availability.

The other fact worth noting is that you can also register a fictitious company name that you can use to do business, which is also known as a DBA or doing business as name. Keep in mind that it costs $50 for you to register a DBA name in Florida. It is valid for five years, and you can do this by mail or online.

Step 2: Appoint a Registered Agent

For you to legally open an LLC in the state of Florida, you need to appoint what is known as a registered agent. A registered agent is a person or entity that is designated to perform service of process for your company, to receive legal documents, and to receive tax forms.

Interestingly enough, this can be an employee of the company, yourself, or even a company that is a third party which offers registered agent services.

With that being said, whether you choose to be the registered agent yourself or you want to hire a company to do so, the registered agent has to be available during regular business hours. The registered agent also has to have a physical address in Florida which is not a PO Box.

Interestingly enough, there are plenty of LLC formation services out there that may also offer registered agent services. If you are using an attorney or lawyer to form your limited liability company, you can always ask them if they will be your registered agent.

Step 3: File the LLC Formation Papers

Perhaps the most crucial step of all to form a limited liability company is to file the formation papers, otherwise known as the articles of organization. You absolutely cannot open a limited liability company if you do not have the articles of organization approved. There are many different pieces of information that you have to include on the articles of organization, including the following:

  • The registered agents address, signature, and name.
  • The mailing address and street address of the limited liability company’s place of business.
  • The address and name of all managers.
  • If the filing date is different from the effective date, then you must include the effective date of the limited liability company. The effective date may be up to 90 days after or five days before the filing date.
  • A member or authorized representative’s signature.
  • If you are a foreign LLC, you’ll also need to include the qualification of foreign LLC form, as well as a certificate of good standing from the state of original filing.

Mail your articles of organization to the Florida division of corporations, along with your $125 fee. Once the state of Florida approves your filing claim, you can then start doing business as a limited liability company.

Once you are approved, the state of Florida will send you an official notice that your limited liability company has been approved. At this point, you can then go get your EIN, which you’ll find out how to do in the next steps.

Step 4: Draft a Company Operating Agreement

Florida does not legally require you to have an operating agreement when you first start a limited liability company, it is beneficial for a variety of reasons.

First and foremost, having a company operating agreement provides you with some legal and financial protection in the event that the liability company gets into trouble. If you do not have one of these agreements, the state of Florida refers to its own state laws rather than doing what is best for the company.

Therefore, we strongly recommend creating an index company operating agreement with a variety of pieces of information included. The pieces of information that you should include in your company operating agreement are as follows:

  • The transfer of members.
  • New member initiation.
  • The management structure.
  • The distribution of debts and income.
  • Financial and accounting details.
  • Management details.
  • Responsibilities of owners, managers, and employees.
  • Dissolution information.

If you are having trouble figuring out what to put on your company operating agreement for your limited liability company, here is an operating agreement template that you can follow for the best results.

Step 5: Obtain Your EIN or Employer Identification Number

The final step so you can legally start a limited liability company in the state of Florida is to apply for your EIN. This is also known as the employer identification number. In some cases, this may also be referred to as the federal employer identification number or federal tax identification number. This is a 9-digit number that you require for your LLC to perform a variety of procedures.

For instance, you would need an employer identification number to hire employees, to make contracts with vendors, and to open a business bank account for your limited liability company. You can think of this as a Social Security number for your business. Without this number, you can’t file taxes, hire employees, or even get business loans from banking institutions.

The Cost of an LLC in Florida

Forming a limited liability company in the state of Florida may cost you anywhere between $125 and $200. This can include filing fees and attorney fees. In terms of the cost when compared to other states in America, this is fairly average. In some states, it can cost up to $800, whereas in others it can cost as little as $50.

Conclusion

When it comes down to it, the state of Florida has fairly favorable laws for individual people who want to start a limited liability company. What you get here is a good combination of affordable costs without having to sacrifice too many of the features that limited liability companies get in states that are very pro-business.