Perhaps you are hoping to form a Florida LLC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Florida.
On this page, you’ll learn about the following:
Florida LLC Cost of Filing
Here are the costs involved in forming an LLC in Florida.
Cost of Filing Formation Certificates
The Florida Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Florida Secretary of State.
Florida Domestic LLC
- Online Filing Fee costs $100.00
- Registered Agent Fee $25.00
- Certified Copy (optional) costs $30.00
- Certificate of Status (optional) costs $5.00
- Annual Report Fee costs $138.75
- Fine on late report costs $400
- By Mail: Fill out the application form, and sent it to New Filing Section, Division of Corporations, P.O.Box 6327, Tallahassee, Florida 32314. Costs $125
Florida Foreign LLC
- Online Application Filing Fee $100.00
- Designation of Registered Agent $25.00
- Certified Copy (optional) $30.00
- Certificate of Status $5.00
By Mail: Fill out the application form, and sent it to the Division of Corporations, Registration Section, P.O.Box 6327, Tallahassee, Florida 32314. Costs $125
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Florida LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Florida, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Florida Department of Revenue for regulatory boards or agencies requiring licensing.
Florida LLC Taxes to be Paid
Florida is a tax-friendly state and provides numerous exemptions and low rates of taxes to business entities conducting their operations in the State.
Personal Income Tax
Florida does not impose any local county income tax on businesses and corporations.
Federal Income Tax
The Federal Income tax in the State of Florida varies between 10% to 39.6%.
State Business Tax
The Corporation income tax in Florida is generally at the rate of 5.5% of federal taxable income.
The State imposes the sales tax at a standard rate of 6%. After the addition of local taxes, the general rate of sales is considered to be 7.01%.
The State imposes a tax at the rate of 0.98% on property.
Cost Comparison Among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Florida, read the table below:
|State||Filing Fee||Annual Fee/Biennial Fee||Sales Tax|
|Florida LLC||$125||$138.75 (Annual)||6%|
|Georgia LLC||$100||$50 (Annual)||4%|
|Delaware LLC||$90||$300 (Annual)||no sales tax|
|Tennessee LLC||$300||$300 (Annual)||7%|
|North Carolina LLC||$125||$200 (Annual)||4.75%|
Florida’s economy is listed among the world’s largest economies. The five significant sectors in Florida are transportation and utilities, trade, professional business services, education and health services, and hospitality. It is one of the States with a very little tax burden.
- Florida Name Reservation: $35
- Doing Business As (DBA): $50 for online filling or filing by mail
- Certified Document Copies: $30
- Certifificate of Good Standing: $5
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Florida LLC: $25
How Much Does It Cost to Maintain an LLC in Florida
To maintain an LLC in Florida you will need to pay an annual fee of $138.75 along with sales tax, state business tax and federal taxes.
While the fee structure for setting up an LLC varies from state to state, the process of maintaining your Florida LLC is fairly straightforward. There are some annual fees and other ongoing costs. These fees and costs are necessary to remain compliant and maintain your company’s legitimacy. Read on for more information about these fees and other associated costs. In addition, be sure to understand how to handle them to avoid a big surprise when you need to pay them.
When setting up your Florida LLC, you must ensure that all owners are on the same page. A comprehensive operating agreement will ensure everyone is on the same page and reduce the chances of conflict. For more information, read this Florida LLC operating agreement guide. Another important document that is required for all businesses is an EIN, or Employer Identification Number. This nine-digit number is issued by the Internal Revenue Service, and acts as the company’s Social Security number. You can get an EIN from the IRS for free.
Another important aspect of maintaining an LLC is keeping thorough records of all transactions. A Certificate of Good Standing reveals that an LLC is legally constituted and can operate. This document is helpful in obtaining loans, acquiring funds, and registering in another state. You’ll need this document to obtain additional licenses and permits for your business. Obtaining a certificate of status in Florida will cost you approximately $8.75.
While there are no federal income taxes for LLCs in Florida, you may be required to pay employment taxes. The state also requires you to pay sales and employment taxes. If your LLC employs workers, you’ll also owe unemployment insurance taxes. You may also be required to pay sales and use taxes. For more information on these taxes, visit the Florida Department of Revenue. This department is the best source for this information.
In addition to paying a $100 annual fee to maintain an LLC in Florida, you’ll also need to choose a registered agent. This person must be at least 18 years of age and a Florida resident. The registered agent can be a family member or another business. Choosing the same person to act as the registered agent comes with additional responsibilities and expenses. The best way to make the right decision is to hire the right person to serve as your registered agent.
Filing an application for a Florida LLC is not hard to do online. However, filing your application by mail is a better option if you’re unsure of the exact requirements. If you’re filing an application for an LLC in another state, you will need to pay a foreign qualification fee of $125. This fee will vary according to the type of business, so be sure to check the requirements in your city or state.
Once your Florida LLC is established, you must hire a registered agent. It’s free to do so, but there are risks that you must consider. To make the registration process easier, you can hire a third-party registered agent service. A third-party registered agent service can cost between $50 and $100 per year. For the first year, you can hire IncNow to act as your registered agent.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Florida is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.