When starting a new business, it is important to consider how you will structure your company. And more specifically, will it be set up as a corporation, a limited liability company (LLC,) a sole proprietorship or a general partnership? Choosing the proper business structure will have a significant impact on your taxes, personal liabilities, and estate plan. As such, before choosing to form a new LLC in the state of Florida, it is important to understand the benefits and costs associated with starting and maintaining one.
What Is an LLC?
An limited liability company, also referred to as an LLC or, is a type of business structure that is designed to protect your personal assets in case your business is sued. For most small businesses, LLCs provide owners with the perfect blend of simplicity coupled with maximum personal asset protection. An LLC can be owned by one or more people, and can be small or relatively large. Unlike other business structures, however, LLCs can choose three different ways to pay income taxes, and can also be taxed as an S-corp. The protection, simplicity, and flexibility of an LLC make it an attractive choice for many businesses in the Sunshine State.
One-Time Costs of Starting an LLC in Florida
Business expenses can add up, especially if you’re a relatively new company or a small business owner. Understanding the costs associated with starting an LLC in Florida can help you budget properly, as well as plan for the future.
The costs associated with starting an LLC include:
- $100 filing fee paid to the Florida Secretary of State’s office for filing Articles of Organization
- $5 fee for a Certificate of Status
- $30 optional fee assessed if you need a certified copy of the Articles of Organization
- $25 fee for having a registered agent
- Optional $50 to $500 year fee for hiring an outside registered agent
- $100 filing fee to register your company if you’re an out-of-state business wishing to conduct business in Florida
If you wish to make changes to your LLC, like changing your registered agent or amending the Articles of Organization, you will pay additional filing fees at the time of the change.
Recurring Costs for an LLC in Florida
Once you’ve registered your LLC in Florida, you must pay continuing fees for operating your LLC throughout the year. All LLCs are required to file an annual report and pay the $138.75 filing fee by May 1st of each year. If your annual report is filed after the May 1st deadline, then your filing fee increases to $538.75.
In total, the basic cost for forming and registering an LLC in Florida is $125. Optional expenses, such as hiring an outside registered agent or filing from out-of-state, can increase that fee to between $210 and $660.
Speak with a Florida Business Attorney Today
If you’re thinking about starting an LLC in Florida, it is important to speak to an experienced Florida business attorney before making an decision regarding the structure of your company. At the Law Offices of Todd M. Kurland, our Florida business lawyers have extensive experience in helping small business owners in Florida during the startup and formation process. Contact us today at (561) 693-4524 for a consultation and review of your case. We make your business our top priority – and it shows.
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