Florida is one of the best states to set up a limited liability company (LLC). It offers notable tax advantages and liability protection for business owners.
In order to legally operate as an LLC, you must first file Articles of Organization with the state. This can be done online or by mail. The process usually takes about a week to process online and a couple of weeks for mailed articles.
Articles of Organization
An LLC needs to file articles of organization with its state before it can become a legal entity. These documents outline the powers, duties and obligations of the company at the state level.
The filing process varies by state, but most states offer an online business portal to complete the process. Some also provide paper forms to be filed by mail, fax or in person.
If the LLC is a professional company, it might need to include a purpose statement in its Articles of Organization. This is important because it can help clarify your business goals and operations.
An LLC must have a business name that is unique and not already in use by another company. You can find out if your business name is available by searching the name on your state’s online search tool.
Operating Agreement
An LLC Operating Agreement explains the rules and regulations that govern the internal operations of your business. These include the ownership structure, management, voting rights, capital contributions, and dissolution procedures.
While it is not a requirement, an Operating Agreement is recommended because it can help you avoid future disputes with other members of your business and protect you from potential legal issues. If you are not a business lawyer, there are several templates available online to help you draft an Operating Agreement for your Florida LLC.
It is also important to note that an Operating Agreement should be updated regularly. Laws can change, and you don’t want to risk including provisions that are no longer enforceable.
Registered Agent
If you want to establish a business in Florida, one of the first things you need is a registered agent. This person is responsible for receiving important papers and official state documents from the state on behalf of your LLC.
Your registered agent also receives any service papers or legal notices sent to your company. If a process server (the person who serves court documents and notices of lawsuits) cannot reach your listed registered agent, a lawsuit could proceed in their absence and you could end up getting a judgment against your business.
Using a professional registered agent can save your business time and money. They can help you stay on top of state requirements and avoid penalties, like late reports or fees. They can also provide additional services that you might not be able to handle yourself, like annual report reminders and tax notifications.
EIN
An EIN (Employer Identification Number) is a federal tax ID that your LLC in Florida needs to do business. It is required if your LLC wants to open a bank account or hire employees, and can be useful for many other reasons.
In addition to the IRS, your EIN will also be necessary if you want to pay a variety of state business taxes in Florida. For example, businesses that sell products and services may need to register for a sales tax number with the Florida Department of Revenue.
The EIN application process is fast and simple. Simply choose the type of business entity you have, enter your address and select the party responsible for your business, then click “Continue”. Then, you’ll be prompted to choose how you wish to receive your EIN confirmation letter online or by mail.