Starting a Company in Florida

Florida is home to 2.5 million small businesses that have a major contribution in the state’s GDP of $1.1 trillion. There are several reasons why small and medium sized companies are thriving in the state and this includes a strong infrastructure, second-largest foreign trade zone (FTZ) network in the country, creating the right platform for becoming a global trade hub, $55.89 billion dollar manufacturing industry, a strong and growing innovation ecosystem, and last but not the least; several types of business incentive programs. These factors contribute greatly towards helping non-residents and foreigners to start businesses in Florida.

Florida small business/startup environment

The Florida business environment has grown in leaps and bounds thus taking Florida from being the ‘sunshine state’ to becoming the ‘startup state’. Florida has a developing business landscape and its business environment has gone through a critical shift in several areas including creating higher access to capital, a flexible tax law, and embracing emerging technology. There are different elements that are entwined to create a business environment where you can start a company in Florida as a foreigner. Some of those elements are:

• Business or startup environment – One of the top reasons to start a company in Florida as a foreigner is that it is a knowledge driven and innovation based economy. Florida is slowly transforming into a state that has brought together capital, technology, investors, and innovation creating a seamless and successful startup environment. The state is also home to several incubators, labs as well as accelerators including 500 Startups and Dreamit, which are the leading accelerators globally. The Florida business environment has been further strengthened with the growth of Miami as a top tech ecosystem in the country with venture-backed companies raising more than $950 million in 2020.
• Florida Small Business Incentive Programs – When you start a company in Florida as a foreigner, one of the aspects that will benefit you and your company is the small business incentive programs offered by the state. The primary objective of these incentive programs is to ensure startups achieve bottom-line advantages, which further leads to long-term profitability. The incentive programs also play an integral role in creating the right Florida business environment. Some of the top programs include Corporate Income Tax Credit, Capital Investment Tax Credits (CITC), Tax Exemption for Machinery and Equipment Used for Research and Development, Quick Response Training (QRT) grant, and Brownfield Redevelopment Bonus among others.
• Foreign Trade Zones – When you start a business in Florida as a non-resident or a foreigner, you may provide goods and services locally as well as globally. The trade industry is considered as one of the fastest growing industries in the state with several small business owners starting their new business as an exporter or importer. Florida imports up until August 2021 were $8,352 million while exports were $4,532 million. This is simply an indicator of the unprecedented growth the industry has been witnessing. When you register a Florida business as a foreigner, you can choose to make it operational within a designated Foreign Trade Zone (FTZ). There are 21 designated FTZ’s in Florida with three zones in Miami itself.

Steps to Form a Florida Company as a Foreigner

If you are wondering if it is possible for you to start a company in Florida as a foreigner or non-resident then the answer is yes, most definitely. There is a specific process that you would have to follow in order to form a startup. You will also be required to be compliant with all federal and state laws pertaining to starting a company. Let’s take a look at how to start a business in Florida as a foreigner and make it operational.

1.Prepare your Florida business plan

One of the most important aspects to consider before you start a company in Florida as a foreigner is creating a strong business plan. The objective of a business plan is to help create an operational roadmap that outlines the requirements, resources available, strategies, risks, opportunities and competition. If you want to register a Florida business as a non-resident or foreigner then your business plan should include the following:

• Business objectives and mission statement
• Business Overview
• Operations Plan
• Market Analysis
• Competitive Analysis
• SWOT Analysis
• Financial Projections and Funding
• Management and Organization
• Products and Services
• Marketing Plan and Sales Strategy

2. Secure your business funding

If you plan to start a company in Florida as a foreigner or a non-resident then there will be initial costs and annual costs. These costs include new business formation, rental or lease of commercial space, cost of purchasing or renting equipment, marketing and promotion of business, and obtaining business license and permits among others. If you feel that your initial budget is not enough to begin operations and sustain it then you will need to secure funding through other available sources in the state. Funding is an important aspect of how to start a business in Florida as a foreigner and before you apply for funding, it is important to determine your requirements. Some of the available funding opportunities are:

• Bootstrapping or Self-funding
• Crowdfunding
• Florida Small business grants
• Small Business Loans in Florida
• Angel Investment
• Venture capital from private investors
• Government’s Recovery Loan Scheme (RLS)
• Micro-loan organizations
• Small Business Administration investment programs
• Funding from Incubators & Accelerators

3. Choose a company name

A company name is an aspect that provides an identity to the business. A good choice of name can create a brand and a poor choice can kill the brand even before it takes off. Hence, you need to consider several aspects when creating a company name. You will also need to ensure the business name is in compliance with the Florida state laws, so that you can start a business in Florida. The important aspects to consider are:

• The name should be catchy, short, and easy to pronounce
• The chosen name should be SEO friendly
• Since the name will be used to register a Florida business, it needs to be unique
• The name should reflect your product or services and brand personality
• Always check for trademark issues prior to reserving the name
• Follow state statutes for choosing a name like a corporate name should have words like “corporation,” “company,” or “incorporated”
• You can also use abbreviations like “Inc”, “Co.”, or “Corp” pursuant to FL Stat § 607.0401 (2019)
• It should not contain any language that implies or states that the company is connected with a federal or state government agency

4. Choose a business entity

If you have decided to start a business in Florida as a foreigner then one of the primary considerations to make is the business structure. You can form different types of entities in Florida like:

• For-Profit Corporation
• Limited Liability Company
• Not for profit Corporation
• Foreign Unincorporated Associations
• Sole Proprietorship
• General Partnership
• Limited Partnership
• Limited Liability Partnership
• Limited Liability Limited Partnership

5. Choose a Registered Agent

One of the important and mandatory requirements governed by the Florida business statutes is that of a registered agent. If you want to start a business in Florida then it is mandatory to designate a registered agent for the service of process.

6. Register your company

If you want to start a company in Florida as a foreigner then there is a specific process for registration of an entity. The new business formation process will depend on the type of entity or business structure. Since you are a non-resident or a foreigner, you will have to go through the process of foreign qualification. Hence, in order to register a Florida business, you will need to file an Authority of foreign business to transact in the state.

Form your business in Florida today!

7. Get EIN

If you are a non-resident or a foreign citizen and are planning to start a business in Florida then you will have to apply for and obtain an EIN or employer identification number. It is a unique 9-digit identification number that is issued by the IRS to different forms of domestic and foreign businesses. An EIN is most commonly used by businesses for filing annual tax returns.

8. Open a bank account for your business

If you are wondering how to start a business in Florida as a foreigner then it is important to remember that having a business bank account can be quite helpful. Although, it may seem that your existing personal banking account may be good enough, that is not the case, simply because mixing personal and business expenditures and earnings can cause accounting issues. A business bank account is primarily used for business transactions like accepting payments, purchasing business equipment, and paying employees among others. If you want to start a company in Florida as a foreigner then here are some of the top benefits of a business bank account:

• You can be assured of financial protection for yourself as well as your company
• It will help in keeping personal finances separate from your business expenses and income
• It enables organized handling of business finances
• With a business bank account, you can track your business expenses and monitor spending
• It makes tax audit and filing of tax returns accurate and easy.

9. Obtain the necessary business licenses and permits

Florida has a strong economy that supports all forms of businesses and different types of industries. You can start a business in Florida in any industry including tourism, aerospace, cleantech, logistics, information technology, and manufacturing. Your business will be formed under the law when you submit registration documents but your business will not be operational till you have obtained the necessary business licenses and permits. It is important to understand that there are primarily two types of business licenses in Florida and they are:

• General business license known as a business tax receipt in the state
• License and permits for specific industries or professions.

10.Know about the annual and ongoing state filing requirements

Once you start a business in Florida as a foreigner or a non-US resident; you will be required to maintain it and ensure your business is compliant with all annual requirements. This will help in ensuring your business enjoys active status. Compliance with annual and ongoing state filing requirements will help you to avoid any penalties or fines related to late filings. Different forms of business entities will have different annual as well as ongoing requirements. The annual requirements are:

• Name reservation or registration renewal
• Renewal of Florida business licenses or permits
• Annual report
• Florida Corporate Tax
• Florida Sales and Use Tax

Know more about Forming a Florida Company as a Non-Resident

If you are planning to start a business in Florida, especially as a non-US resident or a foreigner then you may have several queries regarding how to start a business in Florida as a foreigner. We have created this section of “Frequently Asked Questions” to address some of the most common queries that you may have pertaining to types of business entities that you can register, documents required for registration,visa requirements if any, and getting an EIN as a non-U.S. resident among others.

Can a foreigner open a company in Florida?

Yes. It is possible to start a company in Florida as a foreigner or non-US resident and the process for company registration will be quite similar to that of a domestic or foreign entity formation. If you are thinking of forming a legal entity in the state then you are not required to be a resident of the state to register such an entity.

What types of business entities can a non-US resident start in Florida?

You can register a Florida business with ease even as a foreigner but it is important to note that you will be allowed to form only legal business entities in the state. Legal entity denotes those entities that are governed by Florida statutes and hence, you will be able to form a Limited Liability Company (LLC) or a Professional Corporation(C Corp) in the state.

What documents do I need to submit to form my Florida business?

In order to start a company in Florida as a foreigner or a Non-US resident, you will need to file specific registration related documents. The type of registration application will depend on the business Structure.

For example: If you register a Florida business as a limited-liability company then you will need to file Articles of Organization along with a cover letter and designation of Registered Agent. The application has to be filed with the Division of Corporations and follow the process of formation of a domestic LLC. You will also have to file for name reservation and submit an annual report as governed by Florida statutes.

What Visa requirements are required for a non-US resident to start a business in the US?

As a foreigner, you may wonder whether you need to obtain a visa to start a business in Florida. A visa is not a mandatory requirement for operating a business in the state but it will be required if you want to reside in Florida or anywhere in the USA. There are two main visa options that you have and they are:

• E-2 Visa: This visa is meant for those foreign entrepreneurs who are citizens of countries with whom the US has the Treaty of Navigation, Commerce or Friendship. Hence, the E2 visa holders are also known as E-2 Treaty Investors and will be allowed to register a Florida business. Check if you belong to a Treaty Country.
• EB-5 Visa: The EB-5 Visa is issued under the “Immigrant Investor Program” by United States Citizenship and Immigration Services (USCIS). It is targeted at specifically foreign investors interested in making a capital investment with a Minimum Investment Amount of $1,800,000.

What’s the easiest way to get an EIN as a non-U.S. resident?

If you are a foreign citizen and want to register a Florida business then first you will need to obtain a federal Employer Identification Number (EIN). An EIN is mandatory for most forms of businesses in the USA and is used primarily for filing business tax returns. Since, a foreign resident planning to start a business in Florida does not have a Social Security Number (SSN), the easiest way to get an EIN would be by applying for an Individual Taxpayer Identification Number (ITIN) first.

How do I pay taxes as a non-US resident for my Florida business?

If you start a company in Florida as a foreigner, you will still be required to file taxes. The type of taxes you need to file will depend on the business structure although it is important to note that non-residents or foreign citizens are not allowed to become members of an S-corporation. If you form a corporation as a non-resident then you will have to file corporate taxes like domestic entities. If you register a Florida business as a limited liability company then the profits of the said non-resident run LLC will be taxed at 30%.

Can I open a bank account for my US business if I’m not a US resident?

If you are thinking of forming a startup in Florida or the USA; you will have to eventually look for business banking options. You can open a bank account in the US as a non-resident or a foreign citizen although the process is more complex with stringent rules and requirements as compared to resident entrepreneurs or US citizens. When applying for a US business bank account, you will need to furnish the bank with documents for verification of name, date of birth, and physical address. You can use a valid passport or other government-issued identification from your home country, or even Individual Taxpayer Identification Number (ITIN).

Looking to Start a Company in Florida?

If you are planning to start a company in Florida as a foreigner or a non-US resident then a leading registered agent service like IncParadise can help you with the formation or incorporation of your new business. IncParadise is one of the top registered agents in Florida and have helped thousands of companies to register their new business or startup in the US.

Doing Business As or DBA in Florida

Florida is considered by entrepreneurs and small business owners as a favorable state for starting a small business. The state is home to 2.8 million small businesses leveraging a growing economy, robust infrastructure, and high accessibility to local, national, and global markets. Now, if you register a startup in the state then one of the first aspects to consider is a fictitious business name in Florida. There are several benefits of filing a DBA in Florida including privacy protection, enhanced value, and increased flexibility.

How does a DBA work in Florida?

If you want to start a business in Florida and are looking for a distinctive name that identifies your business then filing a DBA in Florida will be a good option. When you register a DBA or ‘Doing Business As’ then it allows you to conduct business in the state under a fictitious business name instead of your real name. There are many reasons why a new business owner would want a DBA. Some of these reasons are if your company is planning to inaugurate a new service or product line, which is currently not being reflected under the existing name. In such a scenario, you can file a DBA online in Florida to start this new product or service.

For example:: A small business owner, Joseph Lang starts a golf store business named Joseph Lang Golf Outlet. This type of business or business name will not require you to file a DBA online in Florida. However, if he changes the name to Lang Golf Outlet or Lang Golf & other sports outlets then it will be considered as a DBA or ‘doing business as’ name. This will require filing a DBA in Florida under the new name.

When do you need a DBA in Florida?

A DBA is often known as an assumed name, trade name or fictitious name. A fictitious business name Florida increases credibility and increases visibility for marketing and promotion of a business and hence it is quite popular. It is also important to understand that every business does not require filing a DBA in Florida as its requirement is based on several factors including a business owner’s preference. There are several reasons why a business owner would want to conduct their business under a DBA (Doing Business As) and the reasons can be different for different businesses. Some of the most popular reasons for using a DBA are:

• Business Structure – If you opt to go with unincorporated business structures like a sole proprietorship or a general partnership then filing a DBA in Florida may be required if you plan to operate your company under a name that is not your own name or your business partner’s legal name. If you plan to form other legal entities like a Florida LLC, limited partnerships or a corporation then you are not required to file a fictitious business name in Florida. Although, you don’t need to file a DBA as a franchise owner, filing it can help in establishing your identity as a local Florida business.
• Multiple businesses – You are already offering a specific product or service through your existing business but plan to diversify into other unrelated or new products or services through multiple businesses. In such a scenario, a DBA or fictitious business name in Florida will help you to keep each business separate without the need to register several companies.
• Bank Requirement – There are times when your chosen bank may require a DBA (doing business as) for opening a business bank account. This is especially true for sole proprietorship businesses and general partnerships.

Filing a DBA in Florida

In order to conduct business under a DBA, you will be required to complete appropriate DBA forms and file a DBA online in Florida or even through mail. There is a filing fee and it would be required to fulfill any requirements pursuant to the 2020 Florida Statutes, chapter 865.09 – Fictitious Name Registration. Let us look in detail at the important steps towards filing a DBA in Florida successfully.

Do a name search

One of the first steps towards registering a fictitious name is conducting a DBA Florida search. In order to conduct a search for ‘doing business as’ names, you will need to identify or create a name for your company. Once you have created a business name, you can conduct a fictitious name search in the Search Records Section (Sunbiz) of the Florida Division of Corporations. This search will help you to find out if your chosen DBA is available or not while highlighting whether the name is similar to any other fictitious or business name in the Florida Department of State records.

Publish notice of your Florida DBA

Once you have conducted a DBA Florida search to find out the availability of a name, the next step is to publish a notice of intention. This simply means that before you file a DBA online in Florida, you will need to advertise the chosen DBA name at least once in a local newspaper or a newspaper located in the same county as your principal business address pursuant to 2021 Florida Statutes, Chapter 50.031.

For Example:: If your business is situated in Palm Beach County, FL then you need to publish in a local newspaper like the Palm Beach Post, Town-Crier, Sun-Sentinel etc.

Register DBA

Once you have advertised or published your fictitious business name in Florida in the local newspaper, you can proceed towards the registration of your DBA. The ‘doing business as’ name registration in Florida is governed by Florida Statutes, FL Stat § 865.09 (2020). The sole purpose of filing a DBA in Florida is to inform Florida residents about the business entity or individual who is conducting the business under the specific name. It is important to consider the following:

• Your chosen fictitious name or DBA should not contain any suffix or indicator of a legal business entity like Corporation, Incorporated, Limited Liability Company, Corp, L.L.C., L.P., and P.A., among others especially if it is a sole proprietorship.
• According to the Section 655.922 of the Florida Statutes, if your business is not a financial institution then it is prohibited by law to use specific words like “bank,” “banco,” “banker,” “savings bank,” “trust company,” or “credit union,” in your DBA name.

• Send your application through mail to Fictitious Name Registration, PO Box 6327, Tallahassee, FL 32314-1300
• File a DBA online in Florida through the Sunbiz Portal
• You can order a DBA through IncParadise thus saving valuable time and you can use this time to manage other aspects of the new business

Do you want to file a DBA in Florida?

Managing Florida DBA

Filing a DBA in Florida doesn’t mean that the work or process is complete as you will need to keep renewing it as long as you want to keep the fictitious name. The fictitious business name in Florida has to be managed depending on the specific requirements of the business including cancelling the DBA permanently or changing the assumed name. Let us look at the various aspects integral to managing a Florida DBA.

Renew a Florida DBA

One of the important aspects to consider after filing a DBA in Florida is to renew it each year, so that the name doesn’t expire or it is not reserved by some other company. Different states have different renewal periods for a DBA and in Florida, a fictitious name registered under FL Stat § 865.09 (2020) will be valid for a period of 5 years. The 5-year period begins on the date you file a DBA online in Florida and expires on December 31 of the 5th calendar year after that date.

Example: If you register your fictitious business name in Florida on June 12, 2021 then it will expire on December 31, 2026. Hence, you will need to renew it on or before December 31 of the expiration year. Renewal on time will ensure the validity of the DBA for a period of another 5 years.

Change a Florida DBA

Once you have registered a Florida DBA, you can conduct your business under the said name. Now, if you want to alter or change the fictitious name then what? Yes, it is possible and you need to start by conducting a DBA in Florida search to ensure your altered or new fictitious name is available. The next step is to download the “Application for Registration of Fictitious Name” and use it to simultaneously cancel the existing DBA and re-register the new DBA. The fee for re-registration of a fictitious business name in Florida is $50.

Cancel a Florida DBA

After filing a DBA in Florida, you may decide to keep the name for a period of 5 years, change it, or even cancel it. The cancellation of DBA can be due to any professional or personal reasons. According to FL Stat § 865.09 (2020), if you cease to operate and transact your business under the registered DBA then you will need to file a cancellation with the Florida division of corporations within 30 days after the business operations have stopped. In order to cancel your fictitious business name in Florida, you will have to download the DBA registration form or “Application for Registration of Fictitious Name” and fill out Section 4 of the application only. The fee for cancellation is $50.

Need Any Assistance in Filing a DBA?

The process for filing a DBA in Florida may require you to provide accurate information for proper registration of the fictitious name. You will also be required to publish your fictitious business name in Florida in local newspapers prior to the registration process. If all this sounds like a daunting process, then IncParadise is here to assist. We have expertise and knowledge regarding the DBA laws and can help you to set your Florida DBA.

Doing Business in Florida

Florida is favored as one of the best places to form a startup as compared to several other states. There are 2.5 million small businesses thriving in the state and making a valuable contribution to the $1 Trillion economy. The state has a strong entrepreneurial ecosystem, which helps in increasing the overall success rate of a startup while ensuring both short-term and long-term economic as well as business growth. Apart from the pro-business climate and availability of Florida startup grants, one of the benefits of doing business in Florida is access to an ever-growing international trade platform. Today, small or medium-sized enterprises (SME’s) form 96 percent of Florida’s exporters and have been instrumental towards helping Florida become a leading state in the increasing number of new business applications.

Why do startups and small businesses prefer doing business in Florida?

The first thing that comes to mind when you think of Florida is a vast coastline, beaches, Walt Disney World, and Universal Studios among others. These are indeed integral drivers of the Florida hospitality and tourism industry, which is considered one of the largest as it was responsible for generating $27.6 billion in tax receipts. There are several other industries where startups and small businesses prefer to start their new business in. This is not all; there are business incentive programs, small business grants in Florida, and several factors and advantages that will aid in business growth and expansion. Some of these advantages or factors are:

• Favorable Tax Climate – One of the top advantages of doing business in Florida is the favorable tax climate it has. Florida is ranked #4 in the list of best states for business tax climate in a report by the Tax Foundation and this is because of its well structured tax system. If you are operating a sole proprietorship or a limited liability company then you will not be required to file a state income tax. Florida does have a corporate tax although it is lower than many other states. There are several incentives in the form of tax credits available with the Florida corporate income tax.
• Easy Access to Business Capital – One of the benefits of forming a new business in Florida is the ease of access to finance or capital for a small business including enterprise Florida grants. There are different forms of investments available through angel investors and venture capitalists that can assist a startup in the initial stages of their operations. Start-up financing is also available for different stages of a business like product development, market research, and initial marketing among others. Apart from private funding, businesses can also apply for new small business grants in Florida, government funding programs, and seed funds among others.
• Thriving Innovation Ecosystem – The state of Florida has a thriving innovation ecosystem that plays an integral role towards facilitating overall growth of entrepreneurs and small business owners in the state. These state-of-the-art ecosystems attract innovators as well as entrepreneurs by offering access to key resources like mentors, best practices startup events, seed funding, office space, Florida startup grants, networking opportunities and social investment programs.

Small Business/Startup Grants in Florida

When you form a small business in Florida, one of the advantages that you will enjoy is that there are a variety of Florida startup grants and incentive programs to choose from. These grants provide crucial funding to help cover startup costs, expand operations, or invest in necessary business tools like a small business POS system. Grants are available in different forms and the most common types include:

• Small business grants
• Federal grants
• State grants
• County grants
• Local grants
• Grants offered by private agencies

Enterprise Florida grants

The enterprise Florida grants are one of the most popular grants for businesses in the trade sector. These are most commonly known as trade grants whose objective is to support a business in exporting goods as well as diversifying into new international markets. The trade grants are offered by Enterprise Florida, Inc. (EFI) through their Florida Export Diversification & Expansion program. The new small business grants in Florida can be divided into three categories, which are:

• Grants for Virtual Options like the Virtual Business Matchmaking Grants
• Grants for Traditional Travel Options like the Target Sector Trade Show Grants and Gold Key/Business Matchmaker Grants
• Grants for International Business Development like Export Marketing Plans and Florida Online Global – Website Localization Grants.

Form your startup and leverage Florida Business Advantages!

Prospera Small Business Grants

Prospera small business grants in Florida are targeted towards assisting existing small businesses and startups to strive towards professional business development. Prospera is a non-profit entity that promotes economic development that also provides other services like empowerment for entrepreneurs through training and access to capital through micro-loans and commercial bank loans.

Florida High Tech Corridor Grant

The Florida High Tech Corridor Council Program provides small business grants in Florida to help businesses to accelerate their technical expertise and commercial accomplishments. These new small business grants in Florida have been designed primarily to target high-tech companies and are available in 23 counties. The grant amount can vary from $10,000 to $150,000 although the maximum amount can be $250,000 annually per project.

Amber Grant

This is one of the top Florida startup grants targeted towards women entrepreneurs in the state. The grant is awarded by the Amber Grant Foundation to women small business owners and the grant amount can vary from $10,000 (each month) to $25,000 (year-end grant). The primary objective of this Florida small business relief grant program is to help women entrepreneurs establish their business or startups in the initial and operational stages.

National Association for the Self-Employed Grant

The National Association for the Self-Employed (NASE) provides small business grants in Florida to startups so that they can make their businesses operational, grow and expand. The grant amount is $4,000 and they have been responsible for awarding more than $1 million in grants to startups since the program began in 2006.

Small Business Research Grants

There are different types of small business grants in Florida that a business or entrepreneur can benefit from. You have to qualify to be awarded a grant and one of the popular areas is the business research and development grants. This type of grant is available under federal and state grant programs with the most common being the Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program. Depending on the type of new small business grants in Florida you choose, the grant amount can vary from $5,000 for small business entrepreneurs to $1,730,751 for Small Business Innovation Research (SBIR) programs.

USDA Rural Business Development Grants

The rural business development grants are managed by the United States Department of Agriculture (USDA) and hence are considered as federal grants. If you are searching for a Florida startup grant then this is a good grant to start with. There is no maximum grant amount or specific grant amount although smaller amounts get higher priority. This type of new small business grant in Florida can be used for a variety of purposes including:

• Technology-based economic development
• Business strategic planning on long-term basis
• Entrepreneur and leadership training
• Purchasing and setting up business related machinery or equipment
• Market research and feasibility studies

Other Recent Funding Opportunities Published in the Local State

There are several grant opportunities available for small businesses in Florida and since the covid 19 pandemic several new small business grants Florida have been published and made available to business owners and entrepreneurs. There are in excess of $31,979 million available in grants with an additional $22,686 million through Florida government funding. Some of the recent state funding opportunities and small business grants in Florida that you can opt for include:

• Conservation Innovation Grants FY 2021- Florida administered by the Department of Agriculture, Natural Resources Conservation Service
• Orange County CARES Small Business Grant approved by the Orange County Board of County Commissioners
• Indian River County Small Business Recovery Grant program
• St. Lucie Recovery Small Business Assistance grant program
• Head Start or Early Head Start Grant – Martin County, Florida
• Gulf of Mexico Program Reduction and Prevention of Trash, Florida
• Florida Urban and Community Forestry Grants
• Entrepreneurship Education and Training (EET) Grant

Ready to Start Business in Florida?

Whether you are a startup or an existing business; the need for capital is paramount and funding opportunities like enterprise Florida grants and micro-loans can be quite beneficial in the short to long-term. You can take advantage of various Florida small business relief grant programs and other funding options only when you have formed your business in the state. This is where IncParadise can assist you as we are an expert incorporation service provider in Florida.

Florida Business Tax

As a new business owner or budding entrepreneur; there are several facets of a business that you need to understand and one of such is the Florida business tax. At the same time, it is also important to identify the federal, state, and local business tax requirements. The type of taxes varies from one state to another although sales taxes, corporate taxes, and income taxes are common amongst most states. The Florida tax rate will also be different for different types of taxes. For example, the sales tax rate could be different from the use tax or property tax rate.

What taxes do businesses pay in Florida?

One of the important obligations of any new or existing business is to file tax returns and this could be for federal or state taxes. Each state in the USA has some form of taxes and business taxes can vary from one state to another. In some states, income tax is levied and in others there are no corporate taxes. A business in Florida may be subjected to different forms of Florida income tax and corporate taxes. Some of the other taxes that are common in this state include Communications Services Tax, Reemployment Tax, Discretionary Sales Surtax, Sales and Use Tax, Insurance Taxes, Beverage Tax, Documentary Stamp Tax, Corporate Income and Emergency Excise Tax, pollutant taxes, and Gross Receipts Tax among others. The Florida business tax rate for each category of taxes will be different.

Corporate Tax

The Florida corporate tax is also known as the corporate income tax or the franchise tax. It is a privilege tax imposed on specific businesses like professional corporations or for-profit corporations, which exist in Florida. The taxes are imposed on conducting business, or generating income through sales or service. The corporate tax is computed using several aspects of taxation like federal taxable income, additions, and subtractions, and Florida adjustments to arrive at an adjusted federal income. The Florida business tax rate for franchise tax or corporate tax is currently 3.535%, which has been reduced from 5.5% in 2019.

Sales tax

Sales tax in Florida is also known as the “sales and use tax” and is applicable on each sale by any business and also on storage and rental in the state. The Florida tax rate for sales tax is a flat 6% although it can vary in certain cases like the following:

• Sales tax on amusement machine receipts is 4%
• Sales tax on the license or lease of commercial real property is 5.5%
• Sales tax on electricity is 6.95%

How are Florida Businesses taxed?

If you are planning to start a new business in Florida then it is important to focus on the tax status of different forms of businesses. This simply denotes that a limited liability company will be taxed differently as compared to a sole proprietorship or a limited partnership. Some entities may be required to file some form of Florida income tax while other entities may be subjected to two or more taxes with the Florida business tax rate being different for each type of tax. Let’s look at the different types of Florida entities and their taxation.

LLC

If you form an LLC (Limited Liability Company) in Florida then you will be able to benefit from the fact that this type of entity is treated as a pass-through entity. This simply means that owners are not subjected to Florida income tax on the incomes that is passed on to them through the business. If the limited liability company is into selling of goods or services then it may be subjected to sales and use tax. The Florida business tax rate for sales and use tax is 6%. A limited liability company may also be subjected to the discretionary sales surtax depending on the county it is operating from. The surtax rate ranges from .5% to 2.5% although there are some counties where this tax is not imposed at all.

C Corporations

A professional corporation or C-Corp planning to conduct business in the state or is currently earning income in Florida, will be subjected to Florida corporate tax. This corporate income tax is also known as franchise tax and is imposed on the federal taxable income. The Florida corporation tax rate was 5.5% in 2019 and has been reduced to 3.535% in 2021. A C corporation has to report the corporate tax using the Florida Corporate Income/Franchise Tax Return (F-1120) and the due date is based on the tax year of the said corporation.

• Retail sales of taxable items
• Tangible personal property repairs
• Manufacturing or production for retail
• Sale of service warranty contracts
• Operating amusement or vending machines
• Provide taxable service

S Corporation

An S Corporation is also known as S Subchapter and it is a type of corporation that enjoys pass through taxation similar to a limited liability company. Small business owners elect S corporations in Florida as it offers legal protection similar to C corporations but are not subjected to the Florida corporate tax. These types of businesses and their owners are shielded from paying any state income tax on their individual income or the business income. The owners of an S corporation will be subjected to federal income tax on the income received from the business since this is a pass through entity. Apart from this, if an S Corporation qualifies for sales and use tax then the Florida corporation tax rate for the same would be 6%.

Sole proprietorships

A sole proprietorship is a type of unincorporated business where there is a single owner who is subjected to personal income tax on any profits they earn from the business. It is also known as a sole trader and Florida considers income earned through the business as ordinary personal income. Hence, it is not subjected to Florida income tax although the owner or sole proprietor will be assessed for federal tax at the ordinary income tax rate, which varies from 10% to 37%. There are 7 tax brackets each having a different Florida business tax rate and the rate is decided on based on the income cutoffs. For example: the rate is 10% for income of up to $9,950 and 32% for income between $164,926 and $209,425 annually.

Partnerships

Partnerships are a specific business structure where there is a formal arrangement between two or more owners or parties for management and operations of the said business as well as sharing of profits. There are different forms of partnerships that you can form. Some examples are: general partnerships (GP), limited partnership (LP) and limited liability partnerships (LLP). Since the income from a partnership business is distributed to the partners, they will be subjected to federal income tax at the standard Florida income tax rates. You will be required to file the Return of Partnership Income (Form-1065).

Ready to Register your Florida Company?

Whether you are planning to form a limited liability company (LLC), corporation or a partnership firm in Florida, the new business formation process can be quite a comprehensive and time consuming exercise. We at IncParadise are an expert incorporation service provider in Florida and can help you with registration of your LLC or incorporation in the state.

Business License in Florida

If you have an idea and are wondering how to start a new business then you need to apply for new business formation after you have identified a business structure. What’s next once your business has been formed? Even after incorporation, you will not be able to operate or transact in the state till you apply for a business license in Florida. The licensing and permit requirements as well as the cost of a Florida business license can vary from one state to another, one county to another, and also according to the type of business activity. A business license also referred to as a permit in certain scenarios may also require a business to be compliant with zoning requirements. For example, repair businesses are normally not allowed near schools or clinics.

What business license do I need in Florida?

If you are planning to start a new business in Florida then there are several state requirements to fulfill and obtaining a business license in Florida is one of them. Now, you are probably wondering if all businesses require permits or licenses and the answer is that most businesses require some form of licenses although it is not mandatory for all. Licensing and permitting including the cost of obtaining a Florida business license will be dependent largely on two factors:

• The business activity or what your business does. This includes: retail, restaurants, hotels, travel agency etc
• The city or county from which a business operates, ie. the City of Orlando, Dade County, Pinellas County, and City of Sarasota among others.

General business license (business tax receipt)

If you are forming a startup in Florida then your business may require a general business license. This type of license is also known as a business tax receipt and is required by specific business activities. If your business indulges in activities like selling goods or services then you will be required to apply for and obtain a license for Florida business. This is irrespective of where you are operating your business from whether from a rented commercial space or from your home.

Business license/permits for specific industries or professions

Apart from the business tax receipt, most startups depending on their industry will need to apply for a business license in Florida. There are several industries and business activities that are categorized under the “regulated profession or business” and hence have to apply with the Florida Department of Business and Professional Regulation (DBPR). Some of the regulated profession or business as mentioned by DBPR includes the following:

• Alcoholic Beverages & Tobacco
• Real Estate Appraisers
• Architecture & Interior Design
• Hotels and Restaurants
• Certified Public Accounting
• Veterinary Medicine
• Electrical Contractors
• Construction Industry
• Harbor Pilots
• Engineers

Example: If you are planning to start a restaurant with seating capabilities then it will be categorized under “Permanent Food Service (Seating)”. In order to obtain a license for Florida business in food services, you will have to create a facility plan for sanitation and safety and it has to be approved by the Division of Hotels and Restaurants, Plan Review Office. Post approval, you will have to apply for a new “Seating Food Service Establishment license” using the Sunbiz business license DBPR portal. Now, if you want to keep a vending machine within the premises of the food establishment then you would have to apply for an additional Vending Machine license.

Want to know what business licenses you need for your Florida Company?

Obtaining Business Licenses in Florida

A business license is essential for most new businesses as it ensures the business is able to operate or transact in the said jurisdiction. You have to first identify your licensing requirements and then apply for a business license in Florida, which depends completely on the type of business activity, location of the business, and the industry. As a small business, you may be required to obtain a regulated industry license as well as a business tax receipt.

How do I get a business license in Florida?

There are primarily two types of licenses in Florida, which are general licenses also known as a business tax receipt and licenses or permits for regulated industries and professions. You need to first identify whether your business requires to obtain a license for Florida business in either categories or a single category. In certain cases, you may even require local permits and approvals from local fire, police, health and zoning authorities. If you have a company office like a retail outlet in different counties or cities then you will have to apply for a local business license in each of those cities or counties. Similarly, you have to apply for Florida business license renewal in each of the counties or cities.

Application for a General business license

A general business license in Florida is also known as a Business Tax Receipt (BTR) or even an Occupational License. A BTR is required by law or municipal ordinances as it is issued by the local tax collector office in each city or county. In order to obtain a license for Florida business, you will have to apply with the Tax Collector’s Office in the city or county you are operating your business from.

Example: If your business is situated in Palm Beach County then you will have to apply for and obtain a license for Florida business from the Palm Beach County Tax Collector’s office. You will have to complete and submit the “Application for Local Business Tax Receipt” pursuant to County Ordinance No. 17-2. According to Sec. 17-17 of PBC Ordinance No. 72-7, you will not be issued any business tax receipt until you have complied with relevant county laws related to zoning, building, fire control, construction, and health. The cost of a Florida business license will vary according to the type of business activity and business tax will be generated accordingly.

What do you need to provide when applying for a Florida business license?

As a new business or startup, you will have to apply for a business license in Florida to make your company operational. Depending on the type of business activity, you may have to submit different types of documentation along with the permit or license application as well as for business tax receipts. The documents required are:

• Registration Documents – You will have to provide a copy of the Articles of Organization or Articles of Incorporation or any other formation documents depending on the form of business.
• Tax ID – One of the important documents required for new license application as well as Florida business license renewal is a copy of the Federal Employer Identification Number (EIN) or Tax ID Number. If it is not available then you can submit a copy of your Social Security Number (SSN).
• City Business Tax Receipt – If you are applying for a regulated business license in Florida and if your business is situated within the city limits then you will be required to provide a City Business Tax Receipt. If your business is situated outside city limits then a certificate of use from the Planning & Zoning Division will be required.

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How much does a business license cost in Florida?

There are two types of licenses in Florida; one is the small business license in Florida also known as the business tax receipt and the other is the license for regulated industries and professions. The cost of a Florida business license in either case would vary from one business to another and according to the business activity or industry.

For example: the license fee for a permanent food service or restaurant would be $262 for 1-49 seats and the fee for non-seating food establishments is $242 annually.

Renewing Florida Business License

Once you apply for and obtain a license for your Florida business, it is important to ensure it is renewed as and when required. If you have paid an annual license fee then it will be renewed annually and if you have paid a 1/2 year fee then you will have to apply for a Florida business license renewal after 6 months. If you fail to renew your business license or operate without obtaining a license then there can be fines and penalties for non-compliance and can even lead to business closure.

Need any Assistance in Obtaining Your Florida Business License?

If you are planning to start a new business in Florida state then it is important to obtain a license for Florida business to meet state compliances and make your business operational. Depending on the type of activity and industry, your company may require single or multiple licenses and permits. This is where the Business License Research Report service offered by IncParadise can be helpful towards providing you with information and guidance pertaining to licensing in the state.

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

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.

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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.

Do you want to incorporate in Florida?

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.