A limited liability company (LLC) is a business structure that offers the flexibility of a partnership with the limited liability of a corporation.
Depending on your company’s specific needs, there are several steps to take to start an LLC online in Florida. Our guide walks you through the process from choosing a name to filing your annual report.
1. Choose a name
The limited liability company (LLC) is the most popular business structure for small businesses in Florida. This is because it offers liability protection and tax advantages, among other benefits.
Choosing an LLC name is one of the most important steps in starting your business. It can influence the first impression your customers have of your brand, and it can also help customers find you in a search.
You should choose a name that’s unique, easy to remember, and distinguishable from any other business entity in your state. You should also consider the naming requirements for your state’s laws.
Some states restrict the use of certain words in your LLC’s name, such as those referencing banks, financial institutions or agencies of the federal government. You should also avoid using language that implies your LLC is organized for a purpose it’s not authorized to do.
2. Write an operating agreement
Although not required by Florida law, an LLC operating agreement is a good idea for any business. It helps ensure that the company functions according to its own rules and avoids disagreements among members.
A well-drafted LLC operating agreement should set out the members’ relations and responsibilities, the management structure and the general operating procedures of the LLC. It should also define each member’s contributions of value to the LLC and ownership interest percentages.
A properly drafted LLC operating agreement should deny voting rights to involuntary transferees, and provide appropriate provisions to comply with S-corp taxation rules where appropriate. These features, and others, can help an LLC be an effective asset protection tool.
3. Apply for an EIN
If you’re starting a business in Florida, you need to apply for an EIN (Employer Identification Number). This number is similar to your personal Social Security number and identifies your company with the IRS.
The application process is easy and free. Once you complete it, you’ll have a valid EIN that you can use for your LLC, tax filings and more.
Obtaining an EIN is also a necessary step in opening a business bank account. Your EIN proves that you’re banking on behalf of your LLC and demonstrates that you have separate business finances from your personal finances.
You can do this yourself or you can hire an EIN service provider. The service provider will complete the entire application process for you and take care of all the paperwork on your behalf. They’ll also provide you with a confirmation email after you submit your EIN.
4. Get a business bank account
A business bank account is a good way to separate your personal and business finances. It can also help you establish business credit, accept various forms of payment and show professionalism.
To open a business bank account, you will need your LLC’s EIN number and other documents. Some banks may require extra documentation, so it is a good idea to call ahead.
Your bank will then provide you with a business debit card and credit cards. Some banks will give you these immediately, while others will mail them out in a few days.
It is important to find a bank that offers low fees, valuable perks and other features your LLC needs. You should also look for a bank that is FDIC-insured.
5. Get a registered agent
Getting an LLC registered in Florida is important to ensure your business maintains a good standing with the state. This can help you secure loans, business contracts and other forms of financing.
It’s also a smart way to limit your exposure to junk mail and other abuses of public communication. Many unscrupulous marketers and mailing list compilers may be able to use your name and address without your permission.
A registered agent is a legal entity that can receive notices and service of process on behalf of your LLC, such as official government notifications, tax forms, and lawsuits. They need to have a physical address in Florida and be available during normal business hours.
You can be your own registered agent, or hire a company to do the job for you. You can also ask a friend or family member to act as your registered agent.