There are a number of expenses to consider when you decide to open an LLC in Florida. Some are one-time fees while others require ongoing maintenance.
Generally, it costs $100 to file Articles of Organization with the state. This document establishes your business and ensures you’re on record with the state.
1. Articles of Organization
A Florida LLC is formed by filing articles of organization. These are available online or by mail through the Florida Secretary of State.
When completing these documents, make sure you document your business name, registered agent information, and other important details. Also, note your company’s purpose and duration.
Once your Florida LLC is formed, you will need to maintain it by filing an annual report. The fee for this is usually around $130, and it’s due between January 1st and May 1st every year after your Articles of Organization become effective.
In addition, you will need to maintain your registered agent’s information and file any necessary tax forms with the IRS. This will help you comply with state and federal laws.
2. EIN Registration
Once you’ve formed an LLC in Florida, the next step is to register for a federal tax identification number (EIN). This nine-digit code is similar to your personal social security number, and it’s needed when filing taxes, applying for business licenses and permits, and opening a business bank account.
You can apply for an EIN online, by fax, or mail. It’s free and takes a few minutes to complete.
During the startup process, it’s important to keep your finances organized and in one place. That’s where ZenBusiness Money comes in handy – an on-the-go business finance solution that lets you create invoices, receive payments, and transfer money.
In addition to the state fees, you’ll need to pay for insurance if your business will operate in Florida, as well as some other legal costs. Fortunately, most of these fees are tax-deductible.
3. Registered Agent
LLCs are popular business entities because they offer a lot of flexibility along with liability protection and pass-through taxation. They’re also relatively inexpensive to form and operate.
One of the first steps in forming an LLC is to appoint a registered agent. This is a crucial role that ensures you receive important legal paperwork and notifications from the state.
Many LLCs hire a registered agent service, like Northwest, to handle this responsibility for them. It’s a cost-effective alternative to renting an office, and can be especially useful if you live out of state.
4. Reserved Business Name
Besides the state filing fees and EIN registration, you’ll also need to reserve your business name. This is important to protect your right to the name you choose, preventing other incorporated businesses from claiming it until you’ve formed your LLC and filed your incorporation documents.
You’ll need to check name availability first, and many states will let you do this online. Having a registered business name is an important part of your company’s branding.
You should also consult an attorney before forming your LLC. They can help you select the best type of entity for your business and give you expert advice on how to set up your LLC. They can also provide professional filing assistance.
5. Annual Reports
When you start your LLC in Florida, you will have to pay a fee to register it with the state. This includes filing articles of organization, registering your EIN number and choosing a registered agent.
You will also have to file an annual report every year. If you miss this deadline, you will be charged a $400 penalty.
Aside from this, you will have to pay for business insurance. This will vary depending on the type of business you run.
Lastly, you will need to apply for a business credit card and get loans to finance your company. Some financial institutions require personal guarantees on these loans, so it is important to shop around.