Florida LLC Fees
Limited liability companies (LLCs) are business structures in the United States where owners are provided limited liability from their company. This means that the owners, referred to as members, will not be liable for the company's debts or liabilities.
This business structure provides the opportunity to take advantage of the characteristics of a corporation with those of a partnership or sole proprietorship. Although there are many benefits of forming an LLC, there are also fees that go along with those benefits.
Benefits of Creating an LLC
One of the primary benefits of joining an LLC is limited liability. The members (owners) of the LLC are protected from personal liability for whatever happens within the LLC. This means that homes of the LLC members, along with other assets such as savings accounts, can never be accessed in order to pay off business debts.
Forming an LLC provides a sole proprietorship or partnership with a more credible business. Rather than looking like a few people offering a service, it becomes a real business entity that is able to obtain loans, business credit cards, and operate on its own.
Although corporations and LLCs seem similar, LLCs are also a lot more flexible in how they operate. Corporations have specific laws in place, but members of an LLC can be individuals, partnerships, trusts, or corporations. There is never a limit on the members, and a management group can govern the LLC.
Another positive aspect of an LLC is that LLCs do not pay taxes themselves. Instead, all income passes through the corporation and is paid on their personal income tax returns. This is known as “pass-through” taxation, and can usually provide the opportunity to pay less in taxes.
How Much Does it Cost to Start an LLC in Florida?
Every state has different fees, but in general, LLC state filing fees range between $40 and $500. As of 2020, the average filing fee for an LLC in the United States is $132.
In the state of Florida, the cost to set up an LLC is $100 for the filing fee and $25 for the registered agent fee. There is also an annual report fee of $138.75. Besides the state's filing fees, there are other costs to consider when setting up your LLC as well.
Florida LLC Expenses and Fees
Before you start an LLC you should know about all the different expenses and fees you will have to pay.
Starting Cost to form an LLC
Creating an LLC costs money. There are many different fees you have to pay when you start an LLC. Here is a list of the Florida LLC fees you will have to pay.
- Filing Articles of Organization: These are used to legally establish your LLC. The LLC filing fee is a one-time fee that is paid to the state to form your LLC. In the state of Florida, this is $100, with another $25 for the registered agent fee.
- Reserving an LLC Name: When choosing your name you will need to either reserve it ahead of time or simply choose the name. The only reason you may want to reserve it is before you officially file your articles of organization, so no other business can choose the name beforehand. This will cost $25 in Florida.
- Filing a Fictitious Business Name Application: If you do not want to operate your LLC under the legal name, you can do so under a fictitious business name, assumed name, or DBA (for “doing business as”). If you choose to use a fictitious business name, you must file an application and pay a filing fee. This will also cost $25.
- Obtaining a Business License: You will typically need to obtain a business license for your business in Florida. The cost is usually $50 to $100 and depends on the industry you work in.
What are the Annual Fees Associated with an LLC in Florida?
The LLC annual fee is an ongoing fee paid to the state to keep your LLC in compliance and in good standing. It is paid every 1 or 2 years. In Florida, it is $138.75 every year. If your annual report is received after May 1st, you will need to pay a penalty fee of $400 more, bringing your total up to $548.75.
Is Florida a Good State to Create an LLC?
Florida is one of the best states to start an LLC. In fact, Florida is the 4th best state to start an LLC only behind Wyoming, Alaska, and South Dakota. But those states do not have the nice warm weather or beaches that Florida has.
What makes Florida a great place to start an LLC is its low tax rates.
Florida Tax Rates
- Corporate tax rate: 5.5%
- Individual income tax rate: 0%
- Sales tax rate: 6%
- Average effective property tax rate: 1.02%
- Unemployment: 3.8%
Florida is one of the only states that have an individual income tax rate of 0 percent. This makes it a great place to start an LLC. Yes, there are fees to start an LLC in Florida, but there are in every state. The low Florida LLC fees make it a great opportunity to start and grow your business.
If you are wondering what the best states are to start an LLC, here is a list of the top 10 states to start an LLC with the low tax rates and LCC fees.
- South Dakota
- New Hampshire
LLC fees will vary depending on the state that the LLC is formed in. Florida fortunately, has very competitive LLC fees with a market for almost any business. Starting an LLC can be overwhelming, especially when you are trying to calculate costs and keep track of fees. An experienced business law attorney can help. We specialize in forming Florida LLCs and can help you create your company. To find out how much you will have to pay in Florida LLC fees, contact a professional today, we are happy to help!