If you’re looking to start a business in Florida, one of the best options is an LLC. These business entities offer liability protection and tax benefits at the federal level.
However, forming an LLC in Florida requires careful planning. You’ll need to choose the right name, establish a registered agent and get your business bank account in place.
Establishing the entity
When you want to open an LLC in Florida, there are several steps you need to follow. Those steps include filing the Articles of Organization and getting an EIN.
A Florida LLC offers a lot of benefits to its owners. These include asset protection and management flexibility, among others.
For example, an LLC can have members who handle day-to-day business operations or have a manager hired. It also does not limit the number of owners, allows for different kinds of distributions of profits and has fewer formal requirements than other business entities.
In addition, it offers some protection against personal liability. This is because your personal assets like your car or bank account cannot be used to cover business debts.
The registered agent for an LLC in Florida must be a legal service firm or an individual with a physical address in the state (P.O. boxes are not acceptable). The agent must be at least 18 years old and a resident of the state.
Filing the Articles of Organization
When you want to open an LLC in Florida, there are many steps to take. One of the most important is to file the articles of organization, a legal document that establishes your business.
You can file your Articles of Organization in person or online at the Florida Division of Corporations website. You’ll need to pay a $125 filing fee.
An LLC is an attractive business structure because it offers pass-through taxation, meaning your profits are taxed at the state level as well as the federal level. In addition, it can be managed by members or managers and offers strong liability protection.
Your Articles of Organization should include basic information about your business, such as the name, address and purpose of the company. They should also list the names and addresses of all members and managers. The document should also specify an effective date. This is the date your LLC will begin operating.
Obtaining an EIN
When you open an LLC in Florida, you need to obtain an EIN, which is a federal tax ID number that is nine-digits long. You may need this number to apply for a business license, file taxes and open a business bank account.
You can get an EIN for your LLC online, which takes a few minutes. When you’re done, you can either download your EIN or print it.
To get an EIN, you’ll need to provide basic information about your company, including the legal name of the entity and your registered address in Florida. You’ll also need to identify a contact person for the entity.
An EIN adds credibility to your business, which helps you attract clients. It also keeps personal and business finances separate, which is helpful for money management and identity theft prevention.
Getting a business bank account
Once you’ve created your LLC, you need to establish a bank account for it. This may be a business checking or savings account or a merchant services account, which allows you to accept credit card payments from customers.
Opening a bank account will help you manage your finances and streamline invoicing, which will give your business a more professional image. Additionally, it can help you simplify tax filing.
The IRS requires businesses with a legal structure, such as an LLC, to have a business bank account. This requirement applies to both incorporated and unincorporated businesses.
A business bank account can protect your personal assets and your credit score from being negatively affected if you experience a financial crisis or setback in your business. It also helps you stay organized and more easily track expenses, monitor spending and avoid commingling your business transactions with your personal ones.