How much does it cost to form a Florida LLC or Corporation?

Florida is one of the top economies in the nation and is also experiencing unprecedented growth levels in several business and industrial sectors. Entrepreneurs prefer to form a new business in Florida owing to several benefits and the wide variety of business structures to choose from. The cost to form an LLC in Florida or a corporation is quite less as compared to other states. This guide has been created to provide an insight into various aspects of LLC formation and incorporation in Florida including choosing a business entity or structure, new business formation costs, and Florida LLC maintenance cost.

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Florida LLC or Corporation

Florida, also known as the Sunshine State, is home to some of the most innovative startups with more and more entrepreneurs gearing up to become a part of the ever growing economy. There are different types of business structures that you can choose to form in a wide variety of industries. The cost to form a Florida Corporation or an LLC makes the state a first choice for first time business owners and then there are business incentives that play a key role in bringing down the overall cost of doing business in the state. It is important to note that the annual Florida Corporation maintenance cost is different from that of a Limited Liability Company and so is the process of formation or incorporation.

Which business entity should I choose for a Florida business?

People have ideas and these ideas require a platform to launch and then a small business or a startup is born. When starting a new business in Florida, you can choose a wide variety of structures like a limited-liability company or professional service corporations or even a sole proprietorship depending on your requirement. There are several aspects to consider like the cost to form a business, the documentation and the annual maintenance or the Florida LLC annual fee. Let’s look at the factors to consider when choosing a business structure.

Startup & Operating Cost – One of the most important factors determining the type of business structure is the startup and operating costs. For example, the cost to form a Florida Corporation is less than the cost to form an LLC in the state. The startup and operational cost not only includes the business registration or incorporation fee but also certain other costs like:
- Name reservation or registration
- Business licenses and permits
- Insurance
- Employee wages
- Office supplies
- Rent or lease payment
- Marketing and Promotion
- Utilities
Liability Protection – The cost to form a Florida LLC or corporation may be an important factor but so is liability protection. Traditionally, liability protection is a benefit that can be enjoyed by formal legal business structures like a limited liability company or a corporation.
Pass-through entity – If you form a Florida LLC then it will be considered as a pass through entity. This simply refers to the fact that such an entity will not face double taxation like in the case of a corporation. In a limited liability company, the taxes will pass through to the owner instead of the business and hence the owner will file the tax returns.
Perpetuity – The term perpetual existence refers to a business that will remain in existence even if the owners quit, retire, or even pass away. If you form a Florida LLC then this type of business doesn’t enjoy perpetuity but if you form a corporation in Florida then the benefit of perpetual existence also known as perpetual succession will hold true.

Florida LLC Cost

A limited liability company is quite a popular form of business especially from the tax perspective. Also the cost to form a Florida LLC is lower than many other states. One of the important aspects of a limited liability company is that it can be treated by the Internal Revenue Service (IRS) as a corporation or a partnership depending on the number of members. You can even form a Florida LLC that is a single-member LLC and choose not to be treated as a corporation. In such a scenario, it will be treated as a disregarded entity.

Cost for forming an LLC in Florida

The cost to form an LLC in Florida is an important component that will help in determining your startup budget. It will be different from the formation costs of other types of business structures and includes a one-time new business registration fee and other important new business application fee.The Florida LLC formation costs initially would take into consideration the following:

In order to form an LLC in Florida, you have to file Articles of Organization along with a filing fee of $100
You have to reserve a business name prior to filing Florida LLC formation documents and the fee is $25
You will be required to pay a “Registered Agent” fee upfront with the formation documents and it is $25
If you require a Certified Copy of the articles then there is a fee of $30
If you require a Certificate of Status then there is a fee of $5

In the state of Florida, the LLC formation costs are the same for both domestic and foreign entities.

Annual maintenance cost for a Florida LLC

If you are planning to form a limited-liability company in Florida then there is the initial cost and then there is the annual Florida LLC maintenance cost. The maintenance cost is minimal and only associated with the operational aspect of the business. There are different types of Florida LLC annual fees that you may be required to file to ensure active status. The annual maintenance expenses are:

Once you have formed a limited liability company in Florida, you will have to apply for and obtain relevant business licenses and permits. The type of license and the fee will depend on the type of business activity. You may also require multiple licenses. These licenses or permits have to be renewed on a yearly basis and hence is an integral part of the Florida LLC annual fee.
Once you have formed your new business, one of the most important Florida LLC maintenance costs is the annual report. The annual report fee is $138.75 and if you miss the due date then there will be a penalty of $400. Hence, any annual report filed after May 1 will have a fee of $538.75. The annual report has to be filed each year.
Taxes are also an integral part of Florida LLC maintenance costs and tax returns have to be filed annually. There are different types of taxes that may be applicable like state sales tax and electricity tax among others.

There are different aspects of new business formation and costs including Florida LLC annual fee and other associated costs and documentation. We, at IncParadise can help you to register your LLC in Florida as we have the experience, expertise, and knowledge related to new business formation.

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Florida Corporation Cost

The Florida Statutes enables the formation of different types of domestic and foreign corporations in the state. The laws are extremely flexible and friendly and along with a pro-business environment, strong infrastructure, and easy access to capital; Florida has become one of the top destinations for modern day entrepreneurs. If you incorporate in Florida, you will be able to benefit from several other benefits the state offers like low corporate income tax as compared to other states and a wide variety of business incentive programs and grants. These grants and incentives can help you to even offset the overall cost to form a Florida Corporation.

Cost of forming a Florida Corporation

The cost to form a Florida Corporation is an important aspect of new business formation as it will help you to determine the budget required to launch your company and make it operational. There is a one-time new business incorporation fee and then there are costs attached to various other aspects like marketing, staff recruitment, commercial space, and even office supplies. The annual cost for a Florida corporation can be categorized as under:

You have to file Profit Articles of Incorporation and the filing fee is the same for both domestic and foreign corporations. The filing fee is $35 and is a one-time cost to form a Florida Corporation.
You have to reserve a business name prior to file application to incorporate in Florida and the fee is $35.
You will be required to file “Registered Agent Designation” application along with the articles and the fee for that is $35
If you require a Certified Copy of the articles then there is a fee of $8.75
If you require a Certificate of Status then there is a fee of $8.75

Annual maintenance cost for Florida Corporation

A for-profit business corporation is one of the widely chosen business structures in the state and the initial cost to form a Florida Corporation includes filing of articles, registered agent designation, and business name reservation or registration. There is also a Florida Corporation maintenance cost, which is basically a form of annual cost incurred by the company towards ensuring that the said company meets all state requirements. The different annual maintenance expenses are:

Once you incorporate in Florida, you will have to apply for and obtain business licenses as well as permits. The type of licenses and the fees will depend on the type of business activity. You may also require zoning permits and county licenses depending on where your business is located. Business licenses have to be renewed on a yearly basis.
Once you have formed your new business, one of the most important costs to form a Florida Corporation and maintain it is the annual report. If you miss the due date then there will be a penalty – any annual report filed after May 1 will have a penalty fee of $400.
Once you incorporate in Florida, your company may be subjected to a variety of taxes and returns have to be filed annually.

There is a variety of documentation required by any new business including a corporation when it comes to new business formation and the process may seem quite complex. We, at IncParadise can help you to register a Florida Corporation with ease and also provide guidance towards various documentation and information required by you during the incorporation process.

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Need any Assistance in Forming Your Florida LLC or Corporation?

The cost to form a Florida LLC or a business corporation is an aspect that you need to consider prior to the incorporation or new business formation process itself. This will help you to plan your expenses or finances in a better way. You have to also take into consideration different incorporation and compliance requirements as specified by the Florida Statutes. We, at IncParadise can provide meaningful assistance if you are planning to incorporate in Florida or form an LLC and thus ensure you can start your business without any hiccups.

IncParadise is one of the leading business incorporation experts and Florida registered agent service providers, and have helped thousands of companies to start their business in this state. We also provide additional services to small businesses like acquiring a tax id, foreign qualification, and S corporation status, among others.

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