Florida is a tax-friendly state that doesn’t impose a state income tax on LLCs. In addition, the IRS treats LLCs as pass-through entities so that owners pay only federal taxes on profits.
However, Florida does have some fees that you may need to pay for legal business registration and ongoing compliance. These fees can be difficult to understand, so we’ve put together this article to help you learn more about them.
Annual Report
The annual report is a required filing that must be completed by every Florida LLC. It keeps your company’s information up to date with the State of Florida and allows creditors and other interested parties to look up your business address.
It’s a straightforward process that can be done online using Sunbiz. Simply login with your 12-digit document number and begin filling out the report.
If you have any questions or need help, our team of experts is here to answer your queries.
The filing fee for an LLC in Florida is $400, but you can avoid the late payment penalty by making sure your annual report is filed before May 1. If you fail to do so, you’ll be charged a late payment fee of $480.
Registered Agent Fee
Besides the annual LLC fee, there are a few other fees that may come up throughout the life of your business. Most of these are one-time fees that you’ll have to pay once, but there are some recurring ones as well.
Florida has a requirement that all limited liability companies have a registered agent. This person or company will receive legal mail on behalf of the company and accept service of process if it is ever sued.
A registered agent can be you, a friend, or a professional company. The person or company will have their own physical address in Florida and be available during typical business hours.
In addition, they will also serve as a point of contact for receiving documents like tax notices, payment reminders, and more. Using a registered agent is an excellent option for those who want to keep their privacy while still staying in compliance with state law.
EIN Fee
Florida LLCs are required to pay an annual fee when filing their Articles of Organization. This fee covers the cost of a state EIN, which is a number that can be used for tax purposes.
Having an EIN adds credibility to your business and tells clients you’re a legitimate business. It also makes it easier to file taxes and open bank accounts under your business name.
There are several ways to obtain an EIN for your Florida LLC. The quickest method is to apply online. You can also submit form SS-4 by mail or fax.
When you apply for an EIN, you will receive an official confirmation letter from the IRS. This letter will contain your EIN, which can be incorporated into all future business documents.
Certificate of Good Standing
A Florida Certificate of Good Standing (also called a status, existence, or compliance certificate) is an official document that proves your business is in good standing with the state. It’s a key piece of documentation when expanding your business into another state or when you’re applying for a loan or credit line.
It also shows that your business is up to date on filings and fees, including franchise taxes. The cost of a good standing certificate varies by state, with the fee in Florida being $5 for LLCs and $8.75 for corporations and partnerships.
Getting a certificate of good standing ahead of time can help you avoid a lot of hassle down the road. Many banks and insurance companies request proof of your good standing in order to do business with you, so it’s important to have it on hand when you need it.