6 Steps to Forming a Florida LLC

Florida is a great place to start a business. A combination of a rich culture, beautiful cities like Miami, Orlando or Tampa Bay, and access to the world’s transport networks makes the state home to some of the biggest businesses in the U.S. Headquarters of companies like Publix, Tupperware, Burger King and more are proud to call Florida home. One of the world’s largest entertainment companies, Disney, is famous for its Disney World theme park in Orlando.

If you want to start your own business in Florida, one of the best ways to do so is by forming an LLC. Limited Liability Companies (LLCs) are a business entity designed for startups, and small- and medium-sized businesses. Florida makes forming an LLC easy and inexpensive. LLCs are great for small businesses because they give you many of the protections and advantages of larger corporations — without all the rules, regulations and compliance issues common to larger business entities. Let’s start by looking at the advantages of forming a Florida LLC.

Advantages of Forming a Florida LLC

LLCs in Florida have many benefits...

• Starting a Florida LLC is very quick and easy — you can complete all the necessary forms and actions online in an hour or less.
• An LLC limits your personal liability — any debts, obligations and other liabilities your business has are separate from you as the business owner or founder.
• Florida LLCs are easy to maintain — there’s no need for boards of directors, complex rules and regulations, or formal annual meetings.
• LLCs are very easy to manage and you can add and amend members and make other changes with just a little paperwork.
• Florida is also a great place to do business because it’s one of the few states that do not have state income tax and do not tax corporations or LLCs. The annual fee is for filing is very reasonable at only $150.
• Taxes are simple — any income you earn through your Florida LLC is reported on your personal tax return. This means you won’t run into “double taxation” issues common with larger corporations.

Setting up your Florida LLC in Six Quick Steps

1. Name Your Florida LLC

• You will need a distinctive, original name for your Florida LLC that’s not used by another business in Florida.
• To find out if another company is using your choice of business name, carry out a Florida business entity name search.
• The name should not be confusable with the name of another Florida business.
• The name of your business must end with “Limited Liability Company” or the abbreviation “LLC.” “Limited” and “Company” can be abbreviated to “Ltd.” and “Co.”
• For example: “Tampa Bay Luxury Rentals LLC” or “Miami Miracles Cupcake Factory, Limited Liability Company.”

2. Provide the Address for Your New Florida LLC

A Florida LLC must have a designated street address. That could be your home address (if you’re running the company from your residence), where your office is located, or any physical address of your preference — even outside of Florida. It cannot be a P.O. Box.

3. Assign a Registered Agent for Your Florida LLC

Every Florida LLC must have a "registered agent". That could be you, the managing director, owner or a dedicated registered agent service. The registered agent in Florida is someone who receives official legal and tax correspondence and has responsibility for filing reports with the Florida Secretary of State.

At Incfile, all of our packages include a "Registered Agent" service free for the first year and $99 per year thereafter. We also have a dashboard you can login to and easily view any document your registered agent has received on your behalf. Here are a few reasons you might want to appoint Incfile as their registered agent service...

• The Registered Agent must have a physical street address in the state where you are forming the company. Some people establish companies outside of the state they live in and will need to use a Registered Agent service to provide the address.
• You always need to have someone on hand to receive important documents for your business during business hours (typically 9 AM to 5 PM Monday to Friday). Therefore, person must always be available to sign for legal correspondence.
• The Registered Agent’s name and address is part of the public record and available through the Florida Secretary of State's website. If you would prefer your name and address isn’t published, this is a reason to choose a Registered Agent service.
• If you change your Florida business address or move out of state, you don’t need to file additional documentation with the secretary of state for the new address of your Registered Agent. You will need to setup a new registered agent service in the new state.

There are more considerations, but this should help you with your decision to use a Registered Agent service.

4. Provide the Names and Addresses of Florida LLC Members

Your Florida LLC members are the people who own and run the business. They will be the individuals who withdraw profits from the business to pay themselves. Florida requires you to list the names and addresses of all managers or members when you register the LLC. You can register these addresses as street addresses or P.O. boxes.

5. File the Articles of Organization with the Florida Secretary of State

Once you've gathered all the information together for your LLC, you’ll need to file formal documents with the Florida Secretary of State. You can do this online, download a PDF, fill it out and mail it in or have Incfile do this on your behalf.

6. Put your Florida LLC Operating Agreement Together

Florida LLCs aren’t required to have an operating agreement, but they are extremely useful for several reasons. Your operating agreement covers how the business will be run, how managers and members are chosen, rights and duties of members and several other key areas. Here’s how to create your Operating Agreement. If you’re interested in having your Operating Agreement created for you, Incfile will draft a general Operating Agreement within most of our online business formation packages. It can also be selected as an add-on option in our Silver package. This Operating Agreement will be a basic template that you can make changes to anytime you see fit.

You can find lots more useful information on how to form an LLC here. It answers questions like:

• Who can form an LLC?
• Where should you form an LLC?
• When should you form an LLC?
• What are the ongoing responsibilities for an LLC?

Useful Resources for Starting Your Florida LLC

• Florida Secretary of State website
• General information from the Secretary of State on starting a business
• Checking name availability for your Florida LLC

How to Form a Florida LLC without Breaking the Bank

Incfile provides a cost-effective service to help you create your LLC. We guide you through the process and handle most of the administrative steps, such as filing the articles of organization on your behalf. Our basic package also provides a free registered agent service for the first year. If you're looking for help to start an LLC, our comprehensive services provide outstanding value.

*Note that some types of businesses cannot be formed as LLCs in Florida so you will need to choose a different business structure if you are one of these types of businesses.