When you start a business, you can expect to pay a variety of startup costs. Starting an LLC is no exception.
Luckily, there are ways to reduce your startup costs. One way is to use a formation service. These companies help entrepreneurs form their business quickly and easily. They also provide state law expertise and forms.
The $125 filing fee
The $125 filing fee for an LLC in Florida covers the initial state fees associated with forming your company. However, you can incur additional costs as your business grows.
Your first step is to choose a name for your LLC. This is a critical step as it must meet all legal requirements.
The registered agent fee
The registered agent fee is a fee that you have to pay when you form an LLC in Florida. The registered agent is the person or business that is responsible for receiving state filings and paperwork on behalf of your business.
The registered agent must be a Florida resident or a corporation with a Florida address. This helps ensure that your LLC receives legal notices and service of process in the event of a lawsuit.
The annual report fee
An LLC is a business structure that offers protection from personal liability for company debts. In addition, it allows pass-through taxation where the members pay taxes on their share of the profits of the business.
Like corporations, LLCs must file an annual report with the state to keep their information up to date. Failure to do so will result in late fees and fines.
The certificate of status fee
The certificate of status fee is a fee for the Division of Corporations to issue your LLC a document called a “certificate of good standing.” This certificate will show lenders and other business entities that you are compliant with state rules.
The Florida Department of State offers expedited filing for an additional $100 per filing. You can also request certified copies of your articles of organization for $30.
The certificate of good standing fee
The certificate of good standing is a document that verifies your business is registered with the Florida Division of Corporations. It’s often required by lenders and banks to verify that your LLC is legitimate.
You can order a certificate of status online from the Florida Division of Corporations, or request a paper copy by mail. Both methods take one to two days to process.
The reservation of a business name
Unlike most states, the state of Florida does not allow a business to reserve a name before filing its articles of organization.
Therefore, you must do a preliminary search on the state’s Division of Corporations website to check for availability.
This is necessary because if a company with the same name as yours already exists, you can’t register your LLC with that name. Instead, you must file for a fictitious name, or DBA.
The fictitious name fee
Florida law requires your LLC to have a name that is “distinguishable upon the records.” This means it must be different from the names of other businesses that are already on file with the Division of Corporations.
In order to register your business name in Florida, you must first establish a fictitious name (also known as a DBA, or doing business as). There is an online form to complete, and the fee is $50.
The operating agreement fee
A Florida LLC operating agreement is one of the most important documents a new LLC should have. It details profit distribution, ownership and management rules.
This document can be drafted by the owners, but it’s also possible to have it drafted by an attorney. This would cost a few hundred dollars, but it’s worth it to ensure the right information is included.
The name change fee
The first step to changing the name of your LLC is to file an amendment form with the Florida Department of State. This process can be completed in person or by mail, with a $25 filing fee included.
Your LLC name must be unique and distinguishable on the state records. This is important for protecting your business from potential lawsuits.
The certified copy of documents fee
The state of Florida requires LLCs to file articles of organization with the Florida Division of Corporations. The filing fee is $125, and these forms can be filed online or by mail.
Getting an LLC’s Federal Tax ID Number (EIN) is also necessary for banking and other business needs, but it’s free. An EIN is similar to your Social Security number in that it identifies your business and its owners with the IRS.