If you’re ready to start a business, there are many things to consider. Among them are taxes, fees, permits and licenses.
Forming an LLC is the easiest and fastest way to create a legal entity in Florida. It provides the benefits of a corporation, such as liability protection, but with fewer rules and regulations.
Taxes
An LLC is a business structure that offers tax advantages to its owners. It’s also an excellent way to protect personal assets.
Florida is one of the few states that doesn’t impose state income taxes on LLCs. This is a great advantage for small businesses.
Depending on the tax status of your LLC, you may be eligible for other benefits such as pass-through taxation. This allows you to avoid double taxation of your company’s profits by transferring them directly to the members of the LLC.
The LLC tax status you choose will have a direct impact on the amount of federal and state taxes you pay, as well as your tax liability.
In addition to the federal and state taxes you owe, your business will need to register for various fees and licenses. These vary by type of business and can cost as little as $50 or as much as a few thousand dollars.
Registered agent
In the state of Florida, LLCs are required to have a registered agent. This person or company must have a physical address in Florida and be available to receive legal communications on behalf of the business.
A registered agent’s role is to receive official government notifications, tax forms and other important notices on behalf of a business. They also handle service of process and keep the business’s name and address up to date on the public records.
There are a few options for serving as a registered agent in Florida. You can be the registered agent yourself, or hire a company to serve as your agent on your behalf.
Harbor Compliance offers a full suite of registered agent services for $99 per state, per year. This includes a Florida business address, mail forwarding, service of process notifications and compliance alerts.
Business plan
The limited liability company (LLC) is the most popular type of business entity in Florida. They offer tax flexibility and legal protection, and are easier to start and maintain than other types of business entities.
In order to get your LLC up and running, you’ll need to name it, form an operating agreement, file Articles of Organization with the state, and establish a registered agent. You can choose to do it all yourself, or you can hire a service like BizFilings that handles these steps for you.
A registered agent is someone or a company you appoint to receive and forward important legal and tax information. A friend or family member can be your Florida LLC’s registered agent, but many business owners opt to use a registered agent service.
An operating agreement is a private document that outlines the rules and structure of your Florida LLC. It’s not required, but it can help you avoid misunderstandings and disputes between members and make it easier to wind up your business.
Owners
The owners of a Florida LLC have many rights and responsibilities. They can choose their tax status, appoint a registered agent, and open a bank account.
They also have to ensure that they have all the necessary federal, state, and local business licenses and permits. These are all important to keep your small business in compliance with Florida law.
In addition, you will need to carry workers’ compensation insurance. The type of insurance you need will depend on your industry and the number of employees you have.
Choosing a company name is also an important step when starting your LLC in Florida. You can search for available names on the Division of Corporations website.