Florida is one of the most attractive states for starting a business in the United States, and there's a compelling reason: it doesn't charge a state income tax on personal income . What you earn as the owner of your business (when your LLC is taxed as a pass-through entity) is not subject to state income tax. Add to that a low incorporation cost ($125) and procedures that can be completed online. In this guide, we explain, step by step and with real figures from 2026, everything you need to open your business in Florida.
This is a general guide; fees and rules may change. Before submitting any paperwork, please confirm the amounts on the official websites linked at each step.
Is registering a business the same as getting a license?
No, they are different things and many people confuse them:
- Register the business = create the legal entity (for example, an LLC) before the Florida Division of Corporations (System Sunbiz).
- Obtain the local license = the county and/or city permit where you operate, called in Florida Local Business Tax Receipt (formerly "occupational license").
- Tax Register = register with the Florida Department of Revenue (Florida Department of Revenue) for sales tax if you sell taxable products or services.
These are all separate procedures. Below you will find them in order.
Step 1 — Choose your legal structure and register the business
The most common structure for a Hispanic entrepreneur starting out is the LLC (Limited Liability Company) , because it separates your personal assets from business debts.
How much does it cost to form an LLC in Florida? The fee to file the Articles of Organization is $125 total : $100 for the articles plus a mandatory $25 fee to appoint your registered agent . Every LLC in Florida must have a registered agent with a physical address in the state.
- It is presented online at the official Sunbiz portal (efile.sunbiz.org).
- Mandatory annual report: each year you must submit the Annual report. Cost $138,75 and wins May 1th (at 11:59 pm ET).
- If you pay late there is an automatic fine of $400 (the total rises to $538,75).
- If you do not submit the report by the third Friday of September, the state administratively dissolves your LLC.
Official source: Florida Department of State — Division of Corporations (dos.fl.gov/sunbiz).
If you're operating as a sole proprietor , you don't pay this registration fee, but you don't have limited liability protection. For most businesses with customers or employees, an LLC is worthwhile.
Step 2 — Get your EIN (it's free)
The EIN (Employer Identification Number) is your business's "social security number." You need it to open a bank account, hire employees, and file taxes.
It's 100% free and you get it directly from the IRS website (irs.gov), usually in minutes. Don't pay third parties who charge to "process" it: it's a free service from the federal government.
Step 3 — Understand Florida state taxes
Here's Florida's big advantage:
- There is no state personal income tax. If your LLC is taxed as a pass-through entity (sole proprietorship, partnership, or S-corp), the profits that pass through to you are not subject to state income tax. You only pay federal income tax.
- There is no "franchise tax" nor an annual privilege tax on wealth like in other states.
- Corporate income tax of 5,5%: only applies to C corporations and LLCs that choose taxed as a C corporation, and is calculated after an exemption of the first $50.000 of use. Most aspiring entrepreneurs don't fall into this category.
Official source: Florida Department of Revenue (floridarevenue.com).
Step 4 — Obtain your local business license (Local Business Tax Receipt)
Florida does not have a general state license to operate a business. The license is local : issued by the county and, in some cases, the city. It is called a Local Business Tax Receipt and is obtained from the county Tax Collector 's office.
Local example — Tallahassee/Leon County: Here's an important detail that many people are unaware of. The City of Tallahassee eliminated its Business Tax Certificate requirement on June 30, 2017 ; you no longer need the city's permit to operate within city limits. However, Leon County still requires its Local Business Tax Receipt , so confirm your case with the county Tax Collector.
- Leon County Tax Collector — 1276 Metropolitan Blvd., Suite 102, Tallahassee, FL 32312.
- Phone: (850) 606-4700.
If your business is located in another county (such as Miami-Dade, Orange, or Hillsborough), most counties do require a Local Business Tax Receipt. Search for " [your county] tax collector local business tax receipt " to find the appropriate office and fee.
Step 5 — If you sell products: register the Sales Tax
Florida charges a 6% state sales tax , plus a county surcharge (discretionary surcharge) of 0,5% to 2% , resulting in a combined rate of between 6% and 8% depending on the county. That county surcharge only applies to the first $5.000 of a single tangible item.
In 2026, there were changes to the county surcharge; for example, Palm Beach County lowered its surcharge from 1% to 0,5% (its combined rate remained at 6,5%). If you sell physical goods or certain taxable services, you must register for a sales tax permit with the Florida Department of Revenue (form DR-1). Online registration is free ; then you collect the tax from the customer and remit it to the state.
Summary of costs to get started in Florida
| Concept | Cost |
|---|---|
| LLC Registration (Articles of Organization, incl. registered agent) | $125 |
| LLC Annual Report | $138,75 / year |
| EIN (IRS) | Free |
| Sales tax permit (Florida Dept. of Revenue) | Free |
| State tax on personal income | $0 (does not exist) |
| Penalty for late annual report | $400 |
Free resources for Hispanic entrepreneurs in Florida
You don't have to do it alone. There is free advice available, and in many cases, it's in Spanish.
- Florida SBDC (Small Business Development Center): Free advice for business plans, financing and procedures.
- Florida Department of Revenue for online sales tax registration and payment.
- Corporations Division (Sunbiz) to create and maintain your entity.
- Leon County Tax Collector (and your county Tax Collector) for the local license.
Keep learning (related guides)
- How to start a business in Texas: steps, costs and real procedures
- How to start a business in Tennessee: steps, costs, and real procedures
FAQ
How much does it cost to open an LLC in Florida?
$125 to file the Articles of Organization (includes the registered agent), plus $138,75 each year for the annual report. The EIN and sales tax permit are free.
Does Florida have income tax?
There is no state personal income tax. LLCs do not pay state income tax; only C corporations (or LLCs that elect to be taxed as C corporations) pay 5,5% corporate income tax after a $50.000 exemption.
Do I need a local license in Tallahassee?
The City of Tallahassee discontinued its business tax certificate on June 30, 2017, but Leon County still issues the Local Business Tax Receipt. Confirm this with the Leon County Tax Collector: (850) 606-4700.
When is my LLC's annual report due?
May 1st. If you pay late there is a $400 penalty, and if you don't file by the third Friday of September, the state will dissolve your LLC.
