How to form an LLC in Florida.
Florida is a excellent place to form a new LLC.
The Sunshine State has the lowest income taxes
in the country, and is number one
in economic growth prospects.
Every state has slightly different requirements
for forming an LLC.
Follow along closely to learn the required steps
for creating your own limited liability company
in the State of Florida.
There are two ways to form an LLC in Florida.
You can form one yourself,
or you can hire a service to do it for you.
Let's start by looking at the five basic requirements
to form an LLC in Florida on your own.
You can also find these steps in more detail
on our website, linked in the description below.
One, name your LLC.
Every state has its own rules
about what kind of names are allowed for LLCs.
In general, you will need
to observe these naming guidelines.
Your name must include the phrase,
Limited Liability Company, or one of its abbreviations,
LLC or L.L.C. with a period following each letter.
Restricted words, such as bank, attorney, law office,
et cetera, may require additional paperwork
and may also need a licensed professional
to be part of the LLC.
Your name cannot include words that could confuse your LLC
with a government agency,
such as FBI, Treasury, State Department, et cetera.
You cannot use a name that has already been registered.
To see if your name is available in your state,
you'll need to do a name search.
This free service is available
on your state Secretary of State website.
Check out our free guide
for finding the direct link to your state.
We also recommend that you check to see
if your business name is available as a web domain.
Even if you don't plan to make a business website today,
you may want to buy the URL
in order to prevent others from acquiring it.
Two, choose a registered agent.
Florida requires that you nominate
a registered agent for your LLC,
who is the business' point of contact with the state.
The registered agent can be an individual
within the company, including yourself,
or you can hire a professional service
authorized to do business in Florida.
They will send and receive legal papers on your behalf.
These documents include official correspondence,
like legal summons and document filings,
which your registered agent will receive and forward to you.
Your registered agent will help remind you
to file the necessary reports.
Failure to properly maintain your LLC can result in fines
and dissolution, so this assistance is valuable.
Three, file the Articles of Organization.
To register your LLC, you will need
to file the Articles of Organization
with the State of Florida.
This can be done online
at the MyFlorida Sunbiz website, or by mail.
When filing, you will need
to consider the management structure of your LLC.
We recommend learning more about member-managed
versus manager-managed LLCs before you file.
In Section IV of the Articles of Organization,
you will be asked about your LLC's management structure.
This section can be left blank.
However, if you plan to open a business banking account,
the bank may require you to list the name
of at least one authorized representative.
This can be a manager or member
in your Articles of Organization.
Since it's important to open a separate bank account
for your LLC, most people add the name of the person
who will open the account.
You do not need to list every member.
Four, create an Operating Agreement.
Although not every state requires it,
you should also create an operating agreement
to establish ownership terms and member roles for your LLC.
This foundational document is the core of your LLC,
and will help you maintain your organization,
as well as further establish your LLC
as a separate legal entity.
There are six main sections of an operating agreement.
Organization outlines when and where
the company was created,
who the members are, and how the ownership is structured.
Management and Voting addresses how the company is managed,
as well as how the members vote.
Capital Contributions covers which members
financially support the LLC,
and how more funds will be raised in the future.
Distributions outlines how the company's profits
and losses are shared among members.
Membership Changes describes the process for adding
or removing members, as well as if, and when,
members can transfer their ownership shares.
And Dissolution, which explains the circumstances
in which the LLC may be dissolved.
An operating agreement is an internal document.
It does not need to be filed with the state.
However, it should be updated every time
there's a change in membership or management at the company.
You can download a free sample operating agreement
or create a custom one,
using our free operating agreement tool
at HowToStartAnLLC.com.
Five, obtain an EIN.
Lastly, you'll need to get
an Employer Identification Number, or EIN, from the IRS.
Also known as a Federal Tax Identification Number,
your EIN is like a social security number for your LLC,
and is how the IRS tracks your business for tax purposes.
And the EIN is also necessary
to open a business banking account
and legally hire employees.
EIN's are free of charge, and can be obtained
from the IRS online or through the mail.
And with that, you'll have formed a Florida LLC on your own.
Option two, hire a professional service.
The second way to create a Florida LLC
is to hire a professional service
to create your LLC for you.
Hiring a professional service to file your forms
and act as your registered agent for the LLC
will cost you an additional 50 to $150.
However, there are several benefits to working with a pro.
A hired registered agent helps with getting your reports
filed on time, helps you stay organized
by keeping your business mail separate,
and is available at all regular business hours
to accept official mail and legal papers
on your LLC's behalf.
A final and important additional benefit
of using a service is privacy.
A professional service will provide a level of privacy
by withholding your personal name and home address
from the LLC's contact information.
There are many reasons
you might not want your personal information
easily accessible and associated with your business.
Hiring a professional LLC formation service
is an easy way to accomplish this.
Now that you have seen the different requirements and ways
you can form an LLC in Florida, visit our site
and take some time to research your options
and establish a solid foundation
for your business activities.
Click on the links in the description below
to research the top five professional formation services,
or get more information
on how to form a Florida LLC on your own.
Now you know all the steps to form an LLC in your state.
For a more detailed guide, go to HowToStartAnLLC.com.
You can also create an operating agreement
and use our business plan tool free of charge.
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And if you have questions or encounter any roadblocks,
leave a comment below.
Good luck in starting your small business.
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