Establishing an LLC in Florida starts at $125, but this just covers the filing fee. Find out what expenses you might encounter before launching your LLC.
Florida is a state with a lower tax burden than other states, which makes it attractive to small business owners. The lack of state income tax, in particular, makes it desirable for what are known as "pass-through entities," including LLCs and S corporations.
While these tax advantages are appealing, prospective Florida business owners must also consider the costs of establishing their LLC, starting with the $125 filing fee.
What is the total cost to start an LLC in Florida?
The Division of Corporations processes new LLC applications. These are the current Florida LLC fees to file all the necessary paperwork.
Immediate filing costs: $125 to $155
- Articles of organization (LLC formation) filing fee: $100
- Registered agent designation fee: $25
- Certified copy (optional): $30
- Certificate of status (optional): $5
After filing, you should plan for these expenses to formally establish and protect your Florida LLC.
Related costs of starting an LLC: $40 to $1,000 or more
- Operating agreement (optional): $0 to $700
- Registered agent services: $0 to $300 annually
- Business liability insurance: $40 to $300 or more monthly
These are just the basics, so we’ll explain what to expect for each Florida LLC cost in more detail below.
What to do before starting your Florida LLC
Before officially starting your LLC in Florida, consider these important steps:
- Choose and verify your business name. First, conduct a business name search to ensure your chosen name is unique and complies with Florida naming requirements. While optional, you can reserve the name by submitting a letter to the Secretary of State (SOS) and paying a $25 fee, which holds it for 120 days.
- Consider a fictitious name or DBA registration. Filing a fictitious name registration is not required to form a Florida LLC. However, you may choose to do so to establish your business' name. This costs $50 and requires you to publish at least one notice in a local newspaper.
- Decide on your LLC’s management structure. Determine if your LLC will be member-managed or manager-managed, as this affects how your business operates and what you include in your operating agreement. You can use a Florida LLC operating agreement template as your foundation and customize it to reflect your business's distinct characteristics. For an extra layer of assurance, consider collaborating with a legal professional or service to guarantee your document is both precise and effective.
- Gather the necessary information. The mailing address of the business does not have to be within the state of Florida, but you will need to select a county (or more than one county) within Florida as the principal place of business. You must provide the name of the owner or LLC owners of the business when registering.
With these considerations in mind, here’s a breakdown of the primary Florida LLC costs you’ll encounter when starting yours.
How much is the Florida LLC formation filing fee?
- Total cost: $100 to $130Articles of organization: $100
- Registered agent designation fee: $25
- Certified copy (optional): $30
- Certificate of status (optional): $5
The first step to form an LLC in Florida is similar to that of many other states: You must file articles of organization with the Division of Corporations and pay the initial Florida LLC filing fee, which includes $100 for the articles or organization and the $25 registered agent appointment fee.
Although your Florida LLC articles of organization may differ slightly depending on the industry in which you plan to do business, they will contain basic information about your business, such as the Florida LLC name, physical address, industry, the date your LLC in Florida will start, and any information about your own Florida registered agent. They will also include details about any members of the Florida LLC, such as managers and officers.
How much does a registered agent cost in Florida?
- Total cost: $25 to $325Registered agent designation fee: $25
- Registered agent services annual cost: $0 to $300 annually
Every LLC in the state of Florida is required to name its own registered agent. This person or legal entity must be available at all times to receive official legal documents and notices on behalf of the Florida LLC.
While many LLCs choose to have the owner or an employee serve as the registered agent, others choose to contract a third-party registered agent service to perform these duties, particularly if the owner is not available during normal business hours. On average, a third-party Florida registered agent fee is between $50-$300 annually.
Another option is to partner with LegalZoom. Whether you’re looking for a registered agent or assistance with the entire formation process, we offer packages to meet your needs and budget.
How much does a Florida seller’s permit cost?
- Total cost: $0
Florida doesn’t have an official “seller’s permit” as some other states do. Instead, businesses that sell taxable goods or services must register with the Florida Department of Revenue by submitting a tax application or using the online registration system.
While the registration itself is typically free, you’ll be responsible for collecting and paying the appropriate sales tax on your transactions (once you’re registered and actively selling taxable products).
How much do local business licenses cost in Florida?
- Total cost: $40 to $300 or more, depending on your county and industry
The cost of any associated business permit or business license will vary greatly based on your geographical location as well as the nature of your business. You can check the Florida Department of State’s website to determine which local, city, or state registrations you’ll need for your business.
For example, if you are establishing a barbershop, you will need to obtain all related licensure, including certificates of training, which have their own cost depending on the specific government entity issuing the license. These business licenses and training expenses should be factored into any operating budget for your business, and many may be ongoing fees as opposed to one-time business expenses.
How much is the annual LLC fee in Florida?
- Total cost: $138.75 (or $538.75 if received after May 1)
LLCs are required to file and pay a Florida annual report fee to maintain active status. The first report is due the year following the initial registration of the Florida LLC and must be filed between Jan. 1 and May 1. If the online filing of the report occurs after May 1, a $400 late service fee is added to the overall cost of the report, although nonprofit corporations benefit from having the late fee waived.
LLCs should be aware that paying via check or money order will take longer and, therefore, should be sent in plenty of time to avoid any late fees or dissolution. If you do not file the Florida LLC annual report and your LLC is revoked, all associated fees must be paid in addition to filing a reinstatement application and paying a reinstatement fee of $100.
How much does business insurance cost in Florida?
- Total cost: $40 to $300 or more per month
Generally, business insurance costs depend on your industry, the number of employees, and the type of coverage you need. According to Progressive, these are the average monthly costs for common types of business insurance.
- General liability: $80
- Professional liability: $64
- Workers’ compensation: $119
In the state of Florida, LLCs with more than one employee must carry workers' compensation insurance. However, keep in mind that exact costs depend on your business, so it’s best to research quotes for your particular industry.
Other Florida fees and business costs you might encounter
Small businesses looking to establish an LLC in the state of Florida should also consider the potential for additional costs as they plan their operating budget. In addition to these fees, any LLC in Florida should include the cost of professional consultations with lawyers and financial planners should they be warranted.
Creating a Florida LLC operating agreement
- Total cost: $0 (if you write it yourself or use a free service) to $700 (if you hire an attorney)
Although Florida does not legally require an LLC to create and follow an operating agreement, doing so is highly recommended by most business professionals. The purposes of an operating agreement are to:
- Protect LLC members and their personal assets against personal liability.
- Clarify all verbal agreements by putting them into writing.
- Enforce and protect your agreement.
Once all members have signed the Florida LLC operating agreement, it is considered legally binding.
Since LLCs are not required to create an operating agreement, there is no need to file this agreement with the state. Instead, it should be kept with your business paperwork. An LLC may consider contracting an outside adviser, such as a business attorney, to create their operating agreement. Better yet, we can help you create an operating agreement for a flat rate or connect with an attorney for personalized advice.
Changing your registered agent
- Total cost: $25
There are several reasons why during the life of your LLC, you might change your registered agent. Whether your registered agent is no longer a good fit or you've decided to hire an outside company to act as your registered agent, changing the registered agent with the state takes little effort and a modest fee. Anytime you wish to change the registered agent for your LLC for any reason, you will need to pay a $25 fee to do so.
Filing amendments
- Total cost: $25
Similar to changing the registered agent for your LLC, if you need to make any amendments to your business registration, such as the articles of organization, a principal address, or any other new information regarding members of your LLC, you will need to pay an amendment fee of $25.
Requesting copies of documentation
- Certificate of status: $5
- Certified copies: $30
There are times during the lifecycle of your business when you may be required to provide a Florida certificate of status, which states that you are authorized to transact business in Florida. Some reasons may include: expanding your business into another state, selling your business, or even as part of legal proceedings related to your business.
Likewise, there may be occasions when a business will need to provide official copies of business documentation to the bank or other entities, and that documentation will need to be certified.
How much are LLC taxes in Florida?
Florida is typically considered a "tax-friendly state" for LLCs. Still, for any tax-related concerns or questions regarding your LLC, consulting with a tax professional such as an attorney or accountant is highly recommended, particularly to remain compliant with the Internal Revenue Service.
Federal taxes
Because LLCs are classified as pass-through entities, they do not owe any federal taxes, including federal income tax. However, the individual members of the LLC must still report any earnings on their personal tax returns.
State taxes
LLCs are tax-exempt in the state of Florida. While an LLC doesn’t need to pay income taxes, if the LLC is classified as a corporation, Florida's corporate income/franchise tax fee of 5.5% will apply.
Reemployment tax
If an LLC has employees, it will need to pay state reemployment taxes, which start at a rate of 2.7% for the first 10 quarters of the LLC. After the first 10 quarters, the rate will depend on the size of the company's payroll, although there is a rate cap of 5.4%.
Sales tax
If an LLC sells a product, it can collect sales tax and will need to pay state sales tax. In Florida, the sales tax rate is 6% for most goods and services, with the exceptions being:
- Retail sales of new mobile homes
- Amusement machine receipts
- Rental, lease, or license of commercial property
- Electricity
There are additional local sales taxes in several Florida counties known as sales surtax. These surtaxes range between 0.5% and 1.5%, although not all Florida counties have surtaxes. Check with your local government authorities for any applicable surtaxes.
Industry-related taxes
Within the state of Florida, there are several industry-related taxes including asphalt use tax, communication services tax, municipal public service taxes, oil and gas severance taxes, as well as fuel and pollutant taxes.
For businesses that offer merchandise or services, proof of payment in the form of a Florida LLC tax receipt is necessary to have on hand. Tax professionals can advise LLCs regarding these and any other industry-specific taxes.
Breakdown of LLC-related fees
- Filing fee: $100
- Registered agent fee: $25
- Total fee for new/foreign LLC: $125
- Annual report: $138.75
- Late fee for annual report: $400
- Amended annual report: $50
- Articles of organization: $100
- Certificate of conversion: $25
- Reinstatement fee: $100
- Amendment fee: $25
- Certificate of merger: $25
- Certified copies $30
How to start your Florida LLC with LegalZoom
As you can see, starting an LLC in Florida involves several costs and budgeting considerations. Instead of juggling multiple fees, tasks, and legal documents, why not work with the leader in small business formation and take care of everything in one place?
From filing your articles of organization to creating an operating agreement, we’re here to help you get off to the right start for as low as $0 + the $125 filing fee. We can also help you get in touch with an experienced Florida business attorney for ongoing support—all for a flat and predictable rate.
FAQs
Does it cost more to register a foreign LLC in Florida?
No, the fees to register a foreign LLC are the same as registering a new Florida LLC ($125 for the filing and registration combined). You must appoint a Florida-based registered agent, and when filing for your foreign LLC, you must provide a Certificate of Existence from your home state that is dated no longer than 90 days prior.
Can you get grants to help cover the cost of starting a business in Florida?
Yes, it’s possible to receive grants to cover LLC startup costs in Florida. For instance, the National Association for the Self-Employed (NASE) offers grants of up to $4,000 for small businesses nationwide. Some areas in Florida also have specific grant programs, such as the City of Orlando Business Assistance Program.
What's the cheapest way to start an LLC in Florida?
The most cost-effective way to start an LLC in Florida is to handle the process yourself. Simply file the articles of organization directly with the Florida Division of Corporations and pay the filing fees ($125). However, be sure to consider potential long-term costs, annual fees, and risks of errors when starting an LLC independently.
What is the Florida franchise tax?
The Florida franchise tax (also known as corporate income/franchise tax) is imposed on certain businesses operating in the state. It applies to corporations and LLCs taxed as C corporations (based on their federal income). However, as pass-through entities, most standard LLCs are typically exempt from this tax.
Does it cost anything to open a business bank account in Florida?
Although you may be able to negotiate low or no banking fees associated with your bank account, many banking institutions charge monthly fees for businesses to open a business bank account. Spend some time shopping around for the best fit for your specific LLC's banking needs, including finding a bank account with low or no fees.
Jenn Morson contributed to this article.
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