Florida is one of the shining states in the U.S to establish a Limited Liability Company (LLC).
The absence of state tax, minimal costs and great business infrastructure makes Florida an appealing choice for local and foreign investors.
This guide will provide you with detailed information to form an LLC in Florida, covering everything from naming your business to filing taxes which require annual compliance.
This guide can be useful for individual entrepreneurs, foreign business investors or for anyone looking to start a multi member company.
What Is an LLC?
An LLC, also known as Limited Liability Company, is a type of business structure that is legally recognized as one in the U.S which provides the owners, or members, with limited liability protection while also being easy to run and offer them tax advantages.
They tend to be popular because they incorporate the beneficial factors of Corporations and Sole proprietorships without being excessively regulated.
Key Features of an LLC:
- Limited Liability: Members do not need to share the burden of company debts or any lawsuits associated with the company.
- Pass-through taxation: Members will report profits and losses which can be directly passed on and included on personal tax filings unless corporation tax applies.
- Flexible ownership: LLCs can have one or multiple members and these members can be either individuals or businesses.
- Simple Compliance: Lower levels of formality along with lesser administrative burdens than those of corporations.
In Florida, LLCs are regulated under Chapter 605 of Florida’s Revised Limited Liability Company Act.
Why Form an LLC in Florida?
Your choice of a state to form an LLC is vital, and Florida certainly is one of the most welcoming states for entrepreneurs in America. Here’s why:
1. No State Income Tax
Florida stands out as one of the few states where personal income tax does not exist. This serves as a major advantage for single-member LLCs and partnerships, since income usually passes through to members.
2. Business-Friendly Climate
Florida performs well on studies evaluating a state’s business climate for reasons including:
- Low regulatory burden
- Routine filings are handled efficiently.
- Pro-business legal framework
3. Affordable Startup & Maintenance Costs
- Compared to New York and California, Florida has more affordable filing fees.
- Recurring report fees are reasonable and can be completed through an online portal.
4. Ideal for Foreign-Owned Businesses
For non-U.S. residents, Florida is easy to access:
- Lacks a residency or citizenship requirement
- EIN for foreigners is easy to apply for
- An international business hub, Miami has plenty!
5. Thriving Economy
As the 4th largest economy in the US, Florida leads in tourism, logistics, eCommerce, healthcare, real estate, and finance.
Step-by-Step Guide: Forming an LLC in Florida
Let’s dive into each step:
Step 1: Choose a Name for Your Florida LLC
The name of your business is the most important part of your brand. In the state of Florida, it must adhere to certain legal requirements.
Legal Requirements:
- Must contain “Limited Liability Company” or its abbreviations “LLC”, “L.L.C.” and others.
- Cannot suggest a partnership with government offices like the FBI, Treasury, and others.
- Restricted terms such as “bank,” “attorney,” or “insurance” require proper licensing to be used.
Name Availability:
Check desired name availability with the official Sunbiz name search tool.
💡 Tip: If you are not prepared to file, you can reserve your business name for up to 120 days by submitting a name reservation request.
Step 2: Appoint a Registered Agent in Florida
A Registered Agent can be an individual or business entity who will receive legal documents, tax notices, and other official mail on behalf of your LLC.
Florida Requirements:
- Must Be Located in Florida With a Physical Address (Not P.O Box Address)
- Must be available during normal business hours.
- Can be a member of the LLC, an employee, or a third-party service.
If you’re not physically located in Florida, it’s best to hire a professional registered agent service, which typically costs around $49–$150/year.
✅ Tip: Bizstartz offers Registered Agent services for non-residents and remote entrepreneurs.
Step 3: File Articles of Organization
This is the official document that created your LLC in Florida which can be filed online or by mail.
Information Needed:
- LLC name and principal office address
- Registered Agent’s: Name and Address
- Filer’s Name and Address
- Optional: Effective date and LLC duration
- Authorized representative’s signature.
Filing Options:
- Online Filing (Recommended): Sunbiz E-File Portal
- Mail Filing: Download and send to Division of Corporations, P.O. Box 6327, Tallahassee, FL 32314
Fees:
- $100 for Articles of Organization
- $25 for Registered Agent designation
- Total: $125
⏱ Processing Time:
- Online: 1–2 business days
- Mail: 5–10 business days
Step 4: Create an LLC Operating Agreement
Though not required by the state, an Operating Agreement is strongly recommended.
What It Includes:
- Equity ownership
- Member roles and responsibilities
- Voting rights and decision-making powers
- Distribution of profit and loss and financial indicators
- Processes to add or remove members
- Process of dissolution
Florida’s default Operating Agreement laws would give your business a set structure which might not be the most efficient for your corporation. Having a pre-agreed operating document outlines the terms strengthens liability protection.
Step 5: Get an EIN from the IRS
An EIN (Employer Identification Number) is like a Social Security Number for your business. It’s needed to:
- Open a U.S. business bank account
- File federal taxes
- Hire employees
- Apply for business licenses
Apply:
- U.S Citizens/Residents: Apply online instantly at IRS EIN Assistant.
- Non-Residents (No SSN): Via fax or mail Form SS-4. A U.S. phone number is helpful but not mandatory.
✅ Tip: Foreigners seeking support with applying for an EIN are assisted at bizstartz.
Step 6: Obtain Required Licenses & Permits
Operating legally may require obtaining certain licenses on a local, state, or even federal level.
Florida Business Licenses:
- Local Business Tax Receipt (city/county)
- Sales Tax Permit from Florida Department of Revenue
- Permits for health-related services (CPR Training).
- Professional licenses (real estate, law, medicine, etc.)
Visit the website to get more information and relevant Florida-specific data: floridabusiness.org
Step 7: Open a U.S. Business Bank Account
Segregating your financial records and documents is very crucial in business for the following reasons:
- Achieving personal liability protection
- Correct accounting and tax reporting
- Establishing business credit history
Required documents include:
- Approved Articles of Organization
- EIN letter from IRS
- Operating Agreement if multi member
- Valid ID (passport or U.S. ID)
You can open an account with:
- Traditional banks like Bank of America, Chase, or Wells Fargo
- Online banks like Mercury, Relay, or Bluevine
Foreigners: Some banks require a US presence or in person visit. Bank options that are remote friendly are offered by Bizstartz.
Florida LLC after formation
Set up ongoing obligations to ensure that the entity remains in good standing.
1. Annual report submission
Each Florida LLC is mandated to submit an Annual Report detailing the changes that have taken place within the business.
- Due Date: Every year from January 1 to May 1
- Fee: $138.75
- Late Fee: $400 (after May 1)
- File Online: Sunbiz Annual Report Portal
Reports must be filed regardless of whether there are any changes to the business.
2. Federal and State Taxes
Federal Taxes:
- Single-member LLCs, taxed as sole proprietors under Form 1040 Schedule C.
- Multi-member LLCs, taxed as partnerships under Form 1065.
- Optionally taxed as S-corp or C-corp for tax optimization.
Florida State Taxes:
- No personal income tax.
- Sales Tax (6%) applicable to retail or eCommerce shops.
- Reemployment tax applicable if you have employees.
Withholding obligations necessitate registration with the Florida Department of Revenue for LLCs that collect sales tax and have payroll obligations.
3. Renewal of Business Licenses
Maintain city, county, and specific industry licenses. Local licenses usually need to be renewed every year. Proof of tax compliance may be required when renewing the license.
Costs Breakdown: How Much Does It Cost to Start a Florida LLC?
Item | Cost |
Articles of Organization | $125 |
Registered Agent (optional) | $49–$150/year |
Operating Agreement (DIY or paid) | Free–$150 |
EIN from IRS | Free |
Annual Report (from 2nd year) | $138.75 |
Business Licenses | Varies by industry and location |
💡 Estimated startup cost: $125–$300+ depending on services used.
Can Non-U.S. Residents Create an LLC in Florida?
Of course! Florida allows non-residents to have full ownership and control of an LLC. You do not need to be a U.S. citizen or reside in the country.
What You Need to Have
- Registered Agent in Florida
- Business address for the LLC (can be virtual)
- EIN (can be obtained without SSN)
- Bank account in the USA (some options don’t require you to visit)
✅ Here at Bizstartz, we aid non-residents in forming Florida LLCs and open American bank accounts without having to visit the country.
Ready to Set Up a Florida LLC?
Here at Bizstartz, starting a Florida LLC is easy and stress free. We provide the following services:
- Check business name availability
- Filing of Articles of Organization
- Issuance of EIN for residents and non-residents
- Providing Registered Agent services
- Drafting of Operating Agreements
- Opening of business bank account in the US
- BOI (Beneficial Ownership Information) compliance
📲 Begin today at bizstartz.com
🎯 Claim your free consultation and layout your LLC formation strategy with us.
Concluding Remarks
Setting up an LLC in Florida gives you legal protections as well as tax and operational flexibilities. It is ideal whether you are running a local business, handling remote clients, or even establishing a global eCommerce brand.
From anywhere in the world, you can set up your U.S. presence in under a week with the proper tools and guidance.
Let Bizstartz assist you in starting your Florida LLC and expanding your business internationally.