An LLC, or limited liability company, is a popular business structure that offers personal asset protection for its owners, known as members. In Florida, forming an LLC is a relatively simple process, but it’s important to understand the costs involved before moving forward.
One of the main advantages of an LLC is that it limits the personal liability of its members. This means that members are not held personally responsible for the debts or liabilities of the LLC. Additionally, Florida LLCs are not subject to state income tax.
However, there are costs associated with forming and maintaining an LLC in Florida. These include state filing fees, registered agent fees, legal and professional fees, and ongoing expenses. Understanding these costs is essential to making informed decisions about your business structure.
Failing to budget for these costs can lead to financial difficulties down the road and cause disruptions to your business operations. By being aware of the costs associated with forming an LLC in Florida, you can make an informed decision about whether it is the right business structure for you and plan accordingly.
State Filing Fees
One of the first costs you will encounter is the state filing fee for articles of organization. As of 2021, the cost to file articles of organization in Florida is $125. This fee must be paid to the Florida Department of State, Division of Corporations at the time of filing.
It’s important to note that there may be additional fees required by the state depending on your LLC’s specific circumstances. For example, if you wish to form a professional LLC (PLLC), there is an additional fee of $50. Additionally, if you wish to expedite the processing of your articles of organization, there is an additional fee of $400.
Additionally, Florida charges an annual fee for LLCs, which is $138.75, this fee is due every year on the anniversary of the LLCs formation date. If not paid on time, a late fee of $400 will be added.
It’s also worth noting that there may be additional fees associated with obtaining a fictitious name for your LLC. In Florida, if you wish to conduct business under a name that is different from the name listed on your articles of organization, you must file a fictitious name registration with the state. This can cost anywhere from $50 to $150, depending on the county where you file.
Registered Agent Fees
You are required to appoint a registered agent, also known as a statutory agent. A registered agent is a person or entity that is responsible for receiving legal documents, such as service of process, on behalf of your LLC.
The cost of a registered agent can vary depending on the service you choose. Some companies charge a flat fee for their services, while others charge an annual fee. If you choose to use an individual as your registered agent, you may not have to pay any fees, but you will need to ensure that the person is reliable, available during business hours and has a physical street address in Florida.
There are also companies that offer registered agent services for a nominal fee, usually around $50 to $200 per year. Some of these companies may also include additional services such as mail forwarding and compliance reminders.
It’s important to note that if you choose to act as your own registered agent, you will be responsible for being available during business hours to accept legal documents. If you’re unable to do so, your LLC may be in violation of state regulations and could face penalties.
Legal and Professional Fees
You have the option to hire an attorney or use an online LLC formation service to handle the process. Both options have their own costs associated with them.
The cost of hiring an attorney to form an LLC in Florida can vary depending on the attorney’s experience, location and the complexity of your LLC. On average, attorney fees for LLC formation can range from $500 to $2,000. Hiring an attorney can provide you with legal advice and guidance throughout the formation process, as well as help you navigate the paperwork and regulations.
On the other hand, using an online LLC formation service is typically less expensive than hiring an attorney. These services can range in cost from around $50 to $500, depending on the level of service and support offered. Online LLC formation services typically provide step-by-step instructions, a variety of LLC formation packages and customer support, but may not provide legal advice or representation in case of any legal issues.
It’s important to keep in mind that if you choose to use an online LLC formation service, you will still be responsible for ensuring that all the required documents are filed correctly and on time. In addition, you’ll still have to pay the state filing fees and the annual fees that come with maintaining an LLC in Florida.
Ongoing Costs of Maintaining an LLC
Forming an LLC in Florida is just the first step, maintaining it requires paying ongoing costs. These costs include annual report filing fees, annual state fees, and other expenses that may arise.
One of the most important ongoing costs associated with maintaining an LLC is the annual report filing fee. In Florida, LLCs are required to file an annual report every year. The cost of this report is $138.75, and it must be filed with the Florida Department of State, Division of Corporations on the anniversary of the LLC’s formation date. Failure to file the annual report can result in fines and penalties, and could even lead to the dissolution of your LLC.
In addition to the annual report filing fee, Florida LLCs are also required to pay an annual state fee of $138.75. This fee is due on the anniversary of the LLC’s formation date. If not paid on time, a late fee of $400 will be added.
Other ongoing expenses to consider include maintaining a registered agent, obtaining necessary licenses and permits, and ongoing legal or professional fees. For example, if you choose to hire an attorney to handle ongoing legal matters, there may be additional costs associated with their services. Additionally, if you choose to use an online LLC formation service, you may need to pay an ongoing fee for their services.
Conclusion
In conclusion, forming and maintaining an LLC in Florida involves a number of costs, including state filing fees, registered agent fees, legal and professional fees, and ongoing expenses. It’s important to understand these costs and budget accordingly before forming an LLC.
To form an LLC, the state filing fee for articles of organization is $125, and there may be additional fees required by the state depending on your LLC’s specific circumstances. Additionally, Florida charges an annual fee for LLCs, which is $138.75, this fee is due every year on the anniversary of the LLCs formation date.
To maintain an LLC, the ongoing costs include annual report filing fee of $138.75, annual state fee of $138.75, maintaining a registered agent, obtaining necessary licenses and permits, and ongoing legal or professional fees.
While these costs may seem daunting, there are ways to keep them low while still complying with all legal requirements. One tip is to act as your own registered agent, which can save you the cost of hiring a registered agent service. Additionally, using an online LLC formation service can be less expensive than hiring an attorney.
In summary, understanding the costs associated with forming and maintaining an LLC in Florida is crucial to making informed decisions about your business structure. While there are costs associated with LLC formation and maintenance, there are also ways to keep them low while still complying with all legal requirements. It’s important to budget for these costs and stay current on all filings and fees to keep your LLC in good standing.