How to create a LLC in Florida

The quickest and easiest way to formalize a business in the United States, especially a Florida limited liability company (LLC), is through an LLC. For this reason, Hispanos Emprendedores guides you on how to create an LLC in Florida. The popularity of forming a Florida LLC comes from its benefits for business owners, offering flexibility in profit sharing and simplifying the filing process with the Division of Corporations.

Who Should Consider Creating a Florida Limited Liability Company?

This model is suitable if you want a business and at the same time limit your personal liability for business debts, loans, and possible related lawsuits, offering limited liability protection.

Remember, an LLC is a business structure that provides limited liability protection by limiting exposure strictly to the company’s assets. Thus, it protects the owner’s assets from being claimed in the event of business liabilities. This separation helps safeguard personal assets from business debts and lawsuits, embodying the essence of the corporate veil. In case of problems, only the company’s assets can be targeted.

How to File Articles to Create an LLC in Florida

Registering an LLC in the USA, and therefore in Florida, is a short and easy process. First, you need to choose a name. It must include the words “limited company” or “limited liability company.”

Check if the name already exists in the commercial database available from the Department of State. If you want to use a so-called fictitious trade name (DBA or Doing Business As), you must register it with the State’s Division of Corporations.

The second step is to appoint a legal representative or agent, known as a registered agent, for the registration. This can be a commercial entity or a person, or a business entity. They will be responsible for receiving important legal documents on behalf of the business, such as tax forms, legal notices, and other government correspondences. The person or company must reside or operate in the state. Considering the option of being your own registered agent is crucial, as it involves understanding the responsibilities and qualifications required. Hiring a registered agent service can be beneficial for handling legal documents and ensuring compliance with state laws. It's also important to be aware that the online filing for the Articles of Organization might be rejected, and knowing the steps to correct a rejected online filing is essential for a smooth registration process.

Then, file articles of organization with the Florida Division of Corporations on the MyFlorida Sunbiz website. This requires including the principal business address in the Articles of Organization, the street name and mailing address of the LLC’s main office, the name, signature, and address of the legal representative, as well as the names and addresses of the managers, the effective date of the LLC, and the signature of a company member or the legal representative.

It is recommended to prepare an operating agreement

To demonstrate that the business is separate from your capital. It is useful in case of a lawsuit or if it has active debts at the time of its dissolution.

Florida may require additional requirements to complete the registration. One of these is the federal employer identification number (FEIN) from the Internal Revenue Service (IRS) if the LLC has more than one member.

It is required even if the company has no employees. But if it has a single member, you must process the FEIN when you are going to hire workers. To apply, just enter the IRS website.

Other Requirements to Create an LLC in Florida, Including Registered Agent

They may also require business licenses depending on the type of business and its location in the state. Data on the most common licenses can be found on the MyFlorida.com website. Additionally, setting up business bank accounts is crucial for managing finances and receiving payments efficiently.

When the company has employees or is going to sell goods that generate sales tax, it must register with the Florida Department of Revenue (DOR). The form can be completed online or by sending the DR-1 by mail. This registration not only complies with sales tax requirements but also opens the door to potential tax benefits, including avoiding double taxation, which is a significant advantage of forming an LLC.

Furthermore, obtaining a Federal Employer Identification Number (FEIN), also known as a federal tax identification number, is essential for identifying your business entity. It functions similarly to a social security number but for your company.

In Florida, all LLCs must submit an annual report to demonstrate that it is active. The first is sent one year after the business is formed. It is done online during the period from January 1 to May 1.

What is a Sole Proprietorship Business Structure

A sole proprietorship is a very simple business structure and offers no protection against personal liability. However, it is easy to create and maintain, and there are no ongoing fees like with other types of businesses.

Another advantage of a sole proprietorship is that the profits are taxed on an individual level, so the taxes are not as complicated as they might be with other types of businesses.

There are also no restrictions on who can own a sole proprietorship, making it an ideal option for family businesses.

A sole proprietorship is the simplest and most common structure chosen to start a business.

It is an unincorporated business owned and operated by an individual without distinction between the business and the owner.

Sole proprietorships, when not operating under the legal name of the owner, must register a fictitious name with the Division of Corporations.

Contact a lawyer or accountant to determine if this structure works for you.

How to Create a Sole Proprietorship in Florida

To create a sole proprietorship in Florida, you must do the following:

- File the business documentation in the state of Florida

- Register your business name with the Division of Corporations

- Obtain a tax identification number from the IRS

You can find more information at the Florida Department of Business and Professional Regulation CLICK HERE