Whether you’re looking to protect yourself from liability or gain tax advantages, there are a few things that you must do in order to set up an LLC in Florida.
The first thing you must do is choose a business name that is unique and distinguishable from existing businesses in the state. You can do this by conducting a name search on the Florida Secretary of State’s website.
Taxes
Unlike other states, Florida does not tax LLCs. Instead, their owners (the members) pay taxes on the income that they receive from the business.
You can register your LLC with the state by filing Articles of Organization. It’s a relatively simple process that will take a few minutes.
Then, you will need to obtain an EIN (employer identification number), which functions like a Social Security Number for your business. It’s required by the IRS and can be obtained on your own or with the help of a professional service firm.
You will also need to collect sales tax in Florida on your sales of goods and services. This is administered by the Florida Department of Revenue.
Members
The Florida LLC is a flexible business entity that offers some of the benefits of a C corporation without the high tax burden. There are no minimum ownership requirements and members can choose the type of distribution of profits that best suits their needs.
Depending on the management style you prefer, you can either manage your LLC yourself or hire a manager. In either case, it is a good idea to have a detailed operating agreement that spells out the roles and responsibilities of the managers.
An operating agreement can also serve as a guide for how to run your LLC and prevent disagreements among your members. It can also provide a place to record capital contributions and appoint officers. It should be reviewed by an attorney before it is adopted by your company and should be stored with other business records.
Officers
An LLC must have at least one officer or director. These officers must be at least 18 years old. They must be residents of Florida or be foreign citizens who have a residence in Florida.
A Florida LLC must also have a registered agent to receive legal mail. This is a critical service that helps keep your business in compliance with state law by receiving tax notices, reminders for ongoing legal requirements, and other important documents.
You can hire a professional to form your LLC or choose from a wide selection of reliable registered agents for your Florida company. Some firms offer this service free for the first year with their LLC formation package.
Registered agent
An LLC needs a registered agent to receive legal notices on its behalf, including lawsuit-related paperwork. This is a critical component of an LLC’s liability protection, so it’s important to choose an experienced Florida registered agent when you form your LLC.
A Florida LLC’s registered agent can be an individual or a business, and must have a physical address in Florida (PO Boxes are not allowed). They must be available during normal business hours to accept official mail and legal service of process from courts and state agencies on behalf of the LLC.
Many LLCs default to choosing one of their own employees or managers as the registered agent. This can lead to a number of problems, including reliability and privacy.
Annual report
A Florida LLC annual report is a document that the state requires every business entity to file each year. It contains information such as management or membership details, addresses and registered agent information.
The report can also be used to update your company’s name and address if it has changed. It is essential that you complete it and submit it by the due date, as failure to do so will result in a late fee and possible administrative dissolution of your company.
It is easy to file your Florida LLC annual report online by logging into Sunbiz with your 12-digit document number and credit card. If you have forgotten your document number or want to make changes to it, you can look it up on the state’s records.