How Much Does an LLC Cost in Florida
From the standard $125 filing fee to a range of other expenses, read on to ensure you're financially prepared before creating an LLC in Florida.
Here are the following costs to consider:
- Domestic LLC Formation Fee: $125
- Foreign LLC Formation Fee: $125
- Annual Report Fee: $138.75
- Business Permits and Licenses Fees: $0 to $500+
- Business Taxes: 5.5% and 6%
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional Fees: $0 to $3,000+
Despite common misconceptions, the total cost of forming an LLC in Florida goes beyond the $125 LLC formation filing fee.
LLCs in Florida must also pay a $138.75 annual report fee and set aside money for business permits, among other charges. This comprehensive checklist of Florida LLC fees will help you prepare a more accurate budget.
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No. All LLCs in Florida must pay the LLC formation filing fee. This costs $125 for domestic and foreign LLCs.[1]
Florida Domestic LLC Formation Filing Fee
Cost: $125[1]
To form an LLC in Florida, you must submit the Articles of Organization to the Secretary of State. Once the documents are approved, your LLC will be recognized as legally separate from you.
The Articles of Organization should contain the following details:
- LLC business name and address
- Business purpose/description
- Registered agent's name and address
- Management structure (member or manager-managed)
- Names of the LLC's members or managers
Florida Foreign LLC Formation Filing Fee
Cost: $125[1]
If your LLC is already established in a different state and you want to expand your business to Florida, you need to register it as a foreign LLC.
In Florida, establishing an LLC requires a $100 fee, plus a $25 fee for appointing a registered agent. Even if you don't hire a registered agent service, you still need to pay a total of $125 to the Florida Secretary of State.[2]
Series LLCs are not legally recognized in Florida. If your LLC in another state is a series LLC, you'll need to create a separate foreign LLC in Florida. This involves filing a Certificate of Authorization.
Florida LLC Annual Report Fee
Cost: $138.75[1]
In Florida, LLCs must submit an annual report to the Florida Division of Corporations. It can be filed online anytime between January 1st and May 1st of each year.[3]
An annual report updates the state about any changes to your LLC's information in the past year. It includes details like the LLC's name, address, and names of members or managers.
Florida Business Permits and Licenses Fees
Cost: $0 - $500+
Florida does not have a state business license. However, city or county licenses are often required. Some are as affordable as $50, but some permits and licenses may cost more.
Depending on your LLC's industry, you might also need a special business license. Construction businesses will need a building and zoning permit. Meanwhile, accountants and interior designers will need respective professional licenses.
Generally, you need to renew your business license every year. The renewal fee usually costs the same amount as the initial license fee. Check Florida's Department of Business and Professional Regulation (DBPR) to know what permits your LLC needs and how frequently you need to renew them.
Florida Business Taxes
Cost: 6% (Sales Tax) | At least 15.3% (Federal Taxes)
By default, LLCs in Florida are treated as pass-through entities for tax purposes. This means profits and losses are passed directly to members and reported on their personal tax returns.
That said, all LLC members must pay self-employment taxes on their share of the profits. The current combined self-employment tax rate is 15.3%, with 12.4% going to Social Security and 2.9% to Medicare.[4]
Fortunately, Florida is one of the few states that doesn't have a state income tax. However, you still have to pay the federal income tax, which ranges between 10% to 37% of your taxable income.[5]
If your LLC in Florida sells products, you must collect a 6% sales tax.[6] Some counties in Florida impose additional local taxes known as "Sales Surtax", which vary between 0.5% and 1.5%.[7]
No. There is no franchise tax fee in Florida. However, you must submit an annual report to keep your company in good standing with the state.
The annual report fee in Florida is $138.75. If you submit the report late, there is a $400 penalty fee.
Optional Fees for LLCs in Florida
While the Florida LLC fees below are optional, you may need to pay for some of them depending on your business needs. For example, obtaining a Certificate of Good Standing is often necessary when opening a business bank account.
As you plan your budget for your new Florida LLC, remember to account for these potential additional expenses:
Florida LLC Optional Fees | Cost |
---|---|
Florida LLC Registered Agent Fee | $0 - $300+ |
Florida LLC Operating Agreement Fee | $0 - $500+ |
Florida Employer Identification Number (EIN) | $0 to $99 |
Beneficial Ownership Information Report | $0 - $149 |
Florida LLC Name Reservation Fee | $25 |
Florida LLC Fictitious Name Fee | $50 |
Florida LLC Articles of Correction Fee | $25 |
Florida LLC Articles of Amendment Fee | $25 |
Florida LLC Change of Registered Agent Fee | $25 - $85 |
Florida LLC Certified Document Copy Fee | $30 |
Florida LLC Certificate of Status Fee | $5 |
Florida Business Website Domain Fee | $10 - $20 |
Florida Business Insurance Premiums | $ - $$$ |
Florida LLC Registered Agent Fee
Annual Cost: $0, or $100-$300/yr
In Florida, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Florida. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
Registered Agent Service - $125/year
- Business address included
- Free mail forwarding
- Lifetime guide service with business experts
- Never sell your data. Ever.
Registered Agent - $249/Year
- Includes unlimited cloud storage for your business documents
- Includes a Compliance Calendar (valued at $69) for critical tax and annual report deadlines
- Renews automatically each year. Renewal rate is subject to change.
- Cancel your service plan online or by calling (877) 808-8977
Registered Agent - $199/Year
- Get a registered agent for LLCs and corporations
- Available in 50 states
- Get notifications via mail of important legal notices
- Find important documents scanned and uploaded to your dashboard
Yes, you need to get your registered agent's consent before appointing them in Florida. This is because a registered agent is accepting a legal responsibility to accept service of process on behalf of your business.
Florida LLC Operating Agreement Fee
Cost: $0, or up to $500+
LLCs in Florida are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Florida. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Florida Employer Identification Number (EIN)
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Florida don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
BOI Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.[8]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Florida LLC Name Reservation Fee
Cost: $25[1]
Before you register a business in Florida, check whether the business name you want is still available. This is a free service offered by the Florida Secretary of State. If your preferred business name is available, you can use it in your Articles of Organization.
If you're not ready to file the Articles of Organization but want to secure your desired name, you can pay for a name reservation. This reservation holds the name exclusively for you for 120 days. If you need more time than that, you can pay $25 again.[9]
Don't forget to review Florida's detailed list of naming regulations to prevent your Articles of Organization from getting rejected.
Florida LLC Fictitious Name Fee
Cost: $50[10]
A Fictitious Business Name (FBN) allows your LLC to operate under a name different from its legal name registered with the state. Some LLCs in Florida use an FBN for branding purposes. It's also ideal if you want to use a name that doesn't have an "LLC" at the end.
An alternate name for businesses in Florida is valid for up to 5 years. You will need to renew it for $50 so that your LLC's trade name can be retained.[11]
Florida LLC Articles of Correction Fee
Cost: $25[1]
After your Florida LLC application is approved, your next focus should be on maintaining its good standing over the long term.
Get a copy of the approved Articles of Organization and review all the details carefully. If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing the Articles of Correction.
Florida LLC Articles of Amendment Fee
Cost: $25[1]
Your Florida LLC's Articles of Organization contain specific details about your business. Should these details change, you must submit the Articles of Amendment to the Secretary of State.
File the Articles of Amendment if you:
- Add, remove, or change an LLC member or manager
- Update your LLC's business address
- Modify your LLC's stated business activities
The Articles of Correction are for fixing mistakes in initial filings. Meanwhile, the Articles of Amendment are for updating or changing key details as the LLC evolves.
Florida LLC Change of Registered Agent Fee
Cost: $25 - $85[1]
An LLC can change its registered agent's details anytime. Depending on the situation, you must pay either of the two corresponding fees:[13]
- $25 - This fee is charged when an LLC decides to change its registered agent's name or address.
- $85 - This fee is applicable when the current registered agent of an active LLC decides to resign from their position.
The Articles of Amendment are used to change the business name, business purpose, and other details. The Statement of Change is focused solely on changes regarding the registered agent.
Florida LLC Certified Document Copy Fee
Cost: $30
Certified Copies of Florida business documents obtained from the state validate that the documents are true and correct.
You often need certified copies of your LLC's documents to open new bank accounts, apply for loans, or prove to investors that your LLC is legitimate and properly managed.
Florida LLC Certificate of Status Fee
Cost: $5[1]
If your LLC is applying for a loan or a credit card, you might need a Certificate of Status to demonstrate that your LLC is up-to-date with taxes and state reports. This certificate also confirms that your LLC is officially registered and legally authorized to do business in Florida.
Florida Business Website Domain Fee
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Florida Business Insurance Premiums
Cost: $ - $$$
All LLCs in Florida with one or more employees are required to get workers' compensation insurance.[14] As an LLC member, you have the option to include yourself in the insurance coverage.
Florida has a state fund for workers' compensation insurance.[15] Alternatively, you can find a private insurance company that has been approved by Florida's Office of Insurance Regulation.
Additionally, you may need to pay for liability insurance if the nature of your LLC's business purpose has a high risk of being sued. The cost of business insurance depends on your business's risk level and the amount of coverage you want.
Bottom Line
In summary, the Articles of Organization filing fee for an LLC in Florida costs $125, and the annual report is $138.75. If you file the annual report after May 1st, Florida will charge you a $400 penalty fee.
The cost will increase depending on what additional services, documents, and licenses your LLC needs to operate. Ultimately, it's never a bad idea to set aside an extra budget for unexpected costs.
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References
- ^ Florida Department of State. LLC Fees, Retrieved 01/22/2024
- ^ Florida Department of State. Sunbiz Forms & Fees, Retrieved 10/15/2024
- ^ Florida Department of State. E-File Annual Report, Retrieved 10/15/2024
- ^ Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 02/15/2024
- ^ Internal Revenue Service. Federal income tax rates and brackets, Retrieved 02/15/2024
- ^ Florida Department of Revenue. Florida Sales and Use Tax, Retrieved 02/11/2024
- ^ Florida Department of Revenue. Discretionary Sales Surtax Information for Calendar Year 2024, Retrieved 02/11/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ Florida Department of State. LLC Fees, Retrieved 10/15/2024
- ^ Florida Department of State. Florida Fictitious Name Registration, Retrieved 02/11/2024
- ^ Florida Department of State. Fictitious Name Renewal, Retrieved 02/11/2024
- ^ Sacramento County Department of Finance. Fictitious Business Name FAQs, Retrieved 10/15/2024
- ^ Florida Department of State. Forms & Fees, Retrieved 10/15/2024
- ^ Florida Department of Financial Services. Workers' Compensation - Coverage Requirements, Retrieved 10/15/2024
- ^ WorkCompOne. Florida Workers' Compensation Insurance, Retrieved 10/15/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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