Are you thinking about starting your own business in sunny Florida? If you’re leaning toward setting up a Limited Liability Company (LLC), you’re on the right track! An LLC is essential because they’re easy to set up and offers legal protection. Don’t worry if you’re new to this; we’re here to guide you through the steps to get your LLC up and running in Florida.
Here are the steps you need to follow to form a Florida LLC:
Step 1: Picking the Name for Your Florida LLC
First things first, your LLC needs a name. Florida has rules about what your name should include, like “Limited Liability Company” or “LLC.” Ensure your name stands out and isn’t too similar to others, especially in your industry. Avoid using official terms like “FBI” or “Treasury” – those are no-nos. You can do a quick, free name check online to see if your chosen name is available.
Think about getting a website name that matches your business name. You can find good deals for your website domain names on Namecheap.
Step 2: Appointing a Registered Agent in Florida
Your LLC needs a Registered Agent in Florida. This person or company will handle all your essential paperwork. They must have a Florida address and be available during business hours. Remember that while someone in your LLC can be the Registered Agent, their address will be public. Alternatively, you can use a legal service specializing in this area; services like Bizee or Northwest Registered Agent can help you.
Check out our blog: ‘Is a Registered Agent Necessary? Your Guide to Finding an Affordable Option‘
Step 3: Filing Your Florida LLC Articles of Organization
Next up, it’s time to file your Articles of Organization. This step is essential in Florida to officially make your business an LLC. Take advantage of this step; your business must still be an LLC.
Here’s what you need to include in your Articles of Organization:
- LLC Name: Write the full legal name of your LLC. Don’t forget to add “LLC” or “Limited Liability Company” at the end.
- Mailing Address: If you get mail somewhere different from where your business is, put that address here.
- Registered Agent: This is the person who will get all the official papers for your LLC. Write down their full name, company name, address, and phone number. Make sure they agree in writing to be your Registered Agent.
- Management Structure:
- Tell if your LLC will be run by its members (you and any partners) or the managers you pick.
- List their names and addresses.
- Remember, this info will be public so you can use a PO box for addresses.
- Purpose: Write a short description of what your business will do.
- LLC Organizer: This person or company fills out and sends in your LLC’s paperwork. They’re essential for setting up your LLC right.
- Formation Date: When will your LLC officially start? It can be right when you file this form or choose a date (up to 90 days later).
- Signing: After you double-check everything, sign and date the form. Make sure your Registered Agent has agreed to their role.
Filing costs $100 plus $25 for your Registered Agent. You can also get an official certificate for $5 to prove your LLC exists. Remember to file annual reports to keep your LLC in good standing – missing this can lead to trouble!
Step 4: Make Your LLC Operating Agreement
Let’s talk about setting up some ground rules for your business. This is where an Operating Agreement comes in. Think of it like a handbook that explains how your business runs. It’s important because it helps everyone understand their role and what’s expected in your LLC.
Here’s what an Operating Agreement usually includes:
- Ownership: This part talks about who owns what percentage of the business.
- Member’s Rights and Responsibilities: Here, you’ll write down what each person in the LLC can and cannot do and what they’re responsible for. It’s like a job description for each member.
- Joining & Leaving: This section is all about how new people can enter your business and what happens if someone decides to leave. It’s good to have this figured out so there are no surprises later.
- Dissolution: This might sound a bit gloomy, but it’s practical. It’s about how to close down the LLC if you ever need to. It includes the steps to take and how to handle everything when wrapping up the business.
Creating an Operating Agreement is a smart move. It keeps things clear and organized so everyone knows what to expect. It can save you a lot of headaches down the road!
Step 5: Getting Your Florida EIN
Your business needs a number called an EIN from the IRS. It’s like an ID number for your business. This number will help you as an identification number when getting bank accounts and credit accounts, filing taxes, and hiring employees.
It’s free, and you can get it from the IRS website at https://www.irs.gov/businesses/small.
Step 6: Securing Your Florida Annual Resale Certificate for Sales Tax
Last, let’s talk about obtaining your Annual Resale Certificate for Sales Tax, also known as the Seller’s Permit. This is the most common business license you’ll need in Florida, especially if you plan to sell goods or services that are taxed. Here’s the lowdown:
- You can get this certificate through Bizee for $99.
- It’s a must-have if you’re doing business in Florida and selling taxable items.
- The certificate expires every year on December 31, but don’t sweat it – the Department of Revenue automatically renews it for you.
Remember to check with your local government office for any other necessary licenses.
Understanding Your Florida LLC’s Taxes
Your LLC will face various taxes at both state and federal levels. Depending on the situation, these taxes might be paid directly by your LLC or by individual members. Here’s a quick rundown:
- Florida Reemployment Tax: If you have employees, you need to know about this. You’ll be paying unemployment tax, which you can set up through the Florida Department of Revenue. New employers pay a 2.7% tax on the first $7,000 paid to each employee. Keep in mind that specific industries might have additional state taxes.
- Federal Licensing: Not every LLC needs this, but if your business falls under federal regulation (think alcohol, agriculture, TV broadcasting, nuclear energy, etc.), you’ll need a federal license.
- Federal Tax Filing Requirements: All LLCs must report their income to the IRS annually. If you’re a multi-member LLC, use Form 1065. For single-member LLCs, it’s usually Form 1040 Schedule C.
- Florida LLC Annual Report: Every year, your LLC must file an annual report with the Florida Department of State. You can do this online, and it costs $138.75. The due date is May 1 of each year. The first report is due the next calendar year after your LLC was formed, between January 1 and May 1. Take advantage of the deadline, or you’ll face a $400 late fee. And if you don’t file by the third week of September, your LLC could be dissolved.
With your Annual Resale Certificate and a handle on your tax responsibilities, you’re all set to make your Florida LLC a success. Remember, staying on top of these details is critical to running your business smoothly.
Understanding the New BOI Reporting in 2024 for Florida LLCs
What’s New and When Does It Start?
Starting January 1, 2024, all LLCs, including those in Florida and other States, must comply with new federal reporting requirements. These are designed to enhance transparency and ensure everyone knows who’s running the show in businesses.
Important Dates and What They Mean for You
- Effective Date: Mark your calendars – these rules take effect from January 1, 2024.
- Reporting Deadline for Existing LLCs: If your LLC was set up before 2024, you have until January 1, 2025, to submit your first report.
- New LLCs: For those starting an LLC in 2024, your first report is due within 90 days of forming your company.
Who Needs to Report:
- Domestic LLCs: If your business is based in the US, these rules apply to you.
- Foreign Entities: Foreign registered companies in Florida are also included.
Are There Exceptions?
Yes, there are certain exceptions. Detailed info is in the Beneficial Ownership Information Reporting Regulations at 31 CFR § 1010.380(c)(2).
What Do You Need to Report?
In a nutshell, you’ll need to report details about who owns and controls your LLC. Think of it as the who’s who of your business. For the nitty-gritty details, check out the compliance guide.
How to File Your Reports and Avoid Penalties
- Filing Your BOI Report
- When to File: All reports must be filed electronically starting January 1, 2024. Remember, filing before this date isn’t allowed.
- Accuracy is Crucial: You must certify that the information in your report is accurate. Double-checking is your friend here!
The Consequences of Getting It Wrong
- False Information Penalties: Mistakes or misinformation can lead to a fine of up to $10,000 or up to 2 years in prison.
- Focus on Education: The Financial Crimes Enforcement Network (FinCEN) emphasizes helping businesses understand and comply with these rules.
- Have you got It Wrong? Fix It Fast: If you realize a mistake in your report, you have 90 days to correct it without penalties.
- If you need more information or specific guidance, please visit the FinCEN website for all the details.
What to Do After You’ve Started an LLC
Open a Separate Business Bank Account: Keeping your personal and business money apart is super important. Mixing them up can cause significant problems, like losing the protection of having an LLC. This mix-up is sometimes called “piercing the corporate veil,” it can put your personal stuff, like your car or house, at risk if your business runs into trouble. To open a business bank account, you’ll need:
- Your LLC’s Articles of Organization.
- Your Operating Agreement.
- Your Employer Identification Number (EIN).
When picking a bank for your business, consider the fees, minimum deposits, and the benefits (like earning interest) they offer. Look for features that help your business, like using a debit card to pay for things.
Get a Business Credit Card
A business credit card is an excellent tool for handling business purchases and can help build your company’s credit history. Just like with personal credit, a good business credit score can make it easier to get loans and may qualify you for better terms. Visit our website to see our favorite business cards review.
Check out our blog: Novo Review: The Best Business Banking Account in 2024?
Set Up Your Finances Right: Use good habits to track your money. This means not mixing your cash with your business’s. Good record-keeping makes tax time less stressful and helps avoid problems with the rules. You should use a program like QuickBooks to track your money, inventory, payroll, and sales. Talking to professionals like accountants or business lawyers is also intelligent, especially in understanding Florida’s tax rules. Find experts who know a lot about the area where your business is.
Create a Professional Website: Having a website makes your business look legit. WordPress is a great tool to build your site. You can check out SiteGround or Hostinger for web hosting. They’re both good options to get your site up and running.
Announce Your Business with a Press Release: Tell the world about your new business with a press release. It’s an excellent way to get the word out and attract customers.
Starting a business in Florida can be fun and easy. Remember, you can take it step by step. If you need help, Bizee will help you set up your Florida LLC. We recommend the gold package to 99% of you guys out there! Don’t go cheap and get the free one because you’ll still need your EIN, operating agreement, and much more they can do for you. This will save you a ton of time as an entrepreneur so that you can focus on other things that will move the needle forward in your business.
Bizee Overview
Bizee LLC handles the paperwork and legal stuff needed to get your business. Think of it as having a personal assistant for your business setup, ensuring you don’t trip over any legal hurdles or paperwork nightmares.
Why Choose Bizee?
Now, you might wonder, “Why go with Bizee?” First off, they save you a ton of time. We all know how precious time is, especially when you’re trying to get your business rolling. Bizee takes care of the tedious and complex stuff, like filing documents with the state, so you can focus on the fun parts of running your business.
Another big plus is how they help you avoid mistakes. Let’s be honest: filling out government forms can be confusing, and one small error can set you back big time. Bizee knows their way around these forms like the back of their hand, ensuring everything is done right the first time.
Bizee Core Services
- Business Formation: They’ll help you officially start your business by filing it with the state. This includes setting up LLCs, corporations, and more.
- Compliance: Bizee ensures your business stays in good standing with the state by managing annual reports and other legal requirements.
These services are the backbone of Bizee, ensuring your business is set up correctly and remains compliant with state laws.
Bizee Additional Services
- Registered Agent Service: This is a must-have for keeping your business legit. Bizee will be your official contact for legal documents, ensuring you get all the necessary info.
- EIN Acquisition: Think of an EIN as a social security number for your business. Bizee can get this number for you, which you’ll need for opening bank accounts and hiring employees.
Starting a business is exciting, but the paperwork and legal stuff can drag. That’s where Bizee LLC takes the hassle out of the equation. We recommend getting the gold/platinum plan for 99% of business owners. It’s the one we’ve used many times in the past, and it saves you so much time and ensures that there are no filing mistakes when it comes to your business. Trust me, it’s a game-changer for anyone looking to start their business on the right foot.
