Whether you are starting a new business or simply want to grow your existing business, establishing an LLC in Florida is a great way to protect your personal assets and avoid double taxation.
The process to set up your LLC in Florida can be fast and easy if you use an online service like Incfile. Our easy-to-use software makes it quick to choose a name, register your LLC, and obtain an EIN.
Choosing a business name
The name of your business plays a big role in the way people remember it. You want to choose a name that is easy for potential customers to remember and that also conveys the message you want to communicate.
Florida state naming rules require that your LLC or corporation’s name be unique from other registered business names in the state. In addition, a business name cannot include words that imply the company is a bank or financial institution. Similarly, it can’t include words that imply an affiliation with a government agency.
Registering your LLC
Whether you’re an established business looking to expand your presence or a newcomer wanting to launch a limited liability company (LLC), registering your LLC in Florida is quick and easy. Forming an LLC legally establishes your business, limits your personal liability, and offers tax flexibility.
Once you’ve chosen a name for your LLC, it’s time to prepare the Articles of Organization and file them with the state. This can be done online or by mail.
Getting an EIN
Once you’ve formed your LLC, you’ll need to get an EIN or Employer Identification Number. This nine-digit number is similar to a Social Security number and helps tax authorities identify your business.
You can get an EIN online or by filling out a paper form and mailing it to your state’s service center. It usually takes four to six weeks for the IRS to fax or mail your EIN back.
You can also hire a third party to do the EIN application for you. Companies such as Incfile provide affordable packages that will take care of all the paperwork for you, saving you valuable time.
Creating an operating agreement
Every LLC should have an operating agreement to ensure that all parties involved know what their roles are and how profits are divided. It can also provide a legal foundation for future disputes.
It should include a provision that states the LLC will cease operations upon the death of a Member or Members. This will avoid any potential legal issues down the line.
It is not legally required by state law to create an LLC operating agreement, but it is recommended to have one. Rocket Lawyer offers a variety of free templates for Florida LLC operating agreements, which you can easily customize to fit your needs.
Getting a business license
When you set up your LLC in Florida, you may need to get a business license. These can be state or federal licenses or permits.
However, most small businesses only need a business tax receipt (also called a general business license) from their local county and maybe their city.
If you’re unsure of the exact requirements for your business, check this SBA guide or contact your state government agency. They will have a comprehensive list of licensing and permit requirements for each type of business.
Getting insurance
As a business owner, getting insurance is a necessary part of your job. It protects you from liability risks that can arise when your business is operating, and helps pay for damages that occur as a result of your negligence.
The amount of insurance you need varies depending on your business and the industry you’re in. Generally, you need at least a $1 million limit on general liability insurance.
For additional protection, consider a business owners policy (BOP), which bundles general liability with commercial property and business interruption insurance. You can also buy a separate umbrella policy that sits on top of your general liability and covers extra expenses in case you reach your limits.