Florida LLC Cost Guide (2024)

How much does an LLC cost in Florida?

The fundamental cost of forming a limited liability company (LLC) in Florida is the cost to file the Articles of Organization, which costs $125 total ($100 for the Articles themselves and $25 for the state’s registered agent designation fee). This mandatory filing is what formally creates your LLC in the Sunshine State. But it’s not the only expense you’ll likely encounter along the way to creating a successful business. 

Understanding the basic Florida LLC filing fee and other startup costs is essential for entrepreneurs who are looking to start a business in the state. From the initial fees to ongoing expenses like rent, annual reports, and more, the costs vary from one business to another. 

In this guide we’ll provide a detailed overview of the essential and optional costs you can expect when starting a Florida LLC, including:

• Common Florida LLC Fees
• Ongoing Florida LLC Fees
• Other Florida LLC Costs to Consider
• Calculating Your Total Florida LLC Cost

By understanding and anticipating these costs, you can help streamline your startup process.

Common Florida LLC Fees

This table provides an overview of the typical costs and filing fees associated with forming and maintaining a Florida LLC.

Business Name Reservation Fee in Florida

In Florida, reserving a business name for your LLC involves a fee of $25. This fee ensures that the chosen name is held for your exclusive use for a period of 120 days. During this time, no other entity can register a business under the same name, giving you the opportunity to finalize your LLC registration without losing your preferred name.

Filing Fee for Florida LLC Articles of Organization

To officially form an Florida LLC, you must file the Articles of Organization with the Florida Department of State’s Division of Corporations. This filing carries a fee of $100. Additionally, there is a mandatory $25 fee for designating a registered agent for your LLC, bringing the total cost to $125. This is a one-time fee required to legally establish your LLC in the state.

Florida Registered Agent Fees

In Florida, every LLC must designate a registered agent to receive certain legal documents on behalf of the business. The fees for registered agent services vary, generally ranging between $100 and $300 per year. This agent can be an individual resident in Florida or a business entity authorized to conduct business in Florida.

EIN Fee

Obtaining a federal employer identification number (EIN) from the IRS is a requirement for most LLCs, especially if the company will have employees. Often, an EIN is also a prerequisite for getting a business bank account. The Internal Revenue Service does not charge a fee for issuing an EIN, making it a cost-effective step in setting up your LLC.

Florida Fictitious Name Fee

If a Florida LLC wishes to operate under a name other than its legal name, it must register a fictitious name, sometimes called a DBA (doing business as) name. The fee for registering a fictitious name in Florida is $50. This registration allows the LLC to conduct business under the alternate name, which can be vital for branding and marketing purposes.

Foreign LLC Formation in Florida

For LLCs formed in another state that wish to transact business in Florida, registering as a foreign LLC is required. This process involves a filing fee of $125 with the Florida Division of Corporations. The registration ensures that the LLC is recognized as a legitimate business entity in Florida.

Florida Annual Report

Each year, Florida LLCs must file an annual report to maintain “active” status with the state. The annual report fee is $138.75. It’s crucial for LLC owners to submit this report on time as failing to do so can result in late fees and potential administrative dissolution of the LLC.

Certificate of Status in Florida

A Certificate of Status, also known as a Certificate of Good Standing, verifies that an LLC is compliant with state requirements and is authorized to do business in Florida. This certificate is often required for financial transactions and legal matters. The cost for obtaining a Certificate of Status in Florida is $5.00.

Operating Agreement

While not mandated by Florida law, it’s highly advisable for LLCs to create an operating agreement. This internal document outlines the management structure, member roles, and operating procedures of the LLC. Many online resources and templates are available, and small business owners can often create their own Florida LLC operating agreement without incurring legal fees, unless they seek professional legal assistance.

Ongoing Florida LLC Expenses

Start-up costs are pretty easy to anticipate, but you might not be expecting the ongoing costs and annual fees. Here are the most common ones you’ll need to budget for: 

Annual Franchise Tax

Florida is known for its business-friendly environment, one aspect of which is the absence of an annual franchise tax for LLCs taxed like pass-through entities. However, if you decide to be taxed like a corporation, you’ll need to address this tax, which currently has a rate of 5.5% (although this is subject to change).

Registered Agent Renewal Fees

Florida LLCs are required to have a registered agent on file at all times. The registered agent acts as a liaison for receiving some important legal documents. The cost for renewing registered agent services typically ranges from $100 to $300 annually. Maintaining a Florida registered agent by hiring a service helps ensure that your LLC stays in good standing with the state.

License and Permit Renewals

The costs for renewing licenses and permits in Florida vary depending on the type of business and its location. These licenses and permits may be required at the federal, state, or local level, and are essential for the legal operation of the business. For example, Florida doesn’t require a general business license at the state level, but your city or county might. LLC owners should check with relevant agencies annually to check that all necessary renewals are completed on time to avoid penalties.

Fictitious Name Renewal

For LLCs operating under a trade name different from their registered legal name, Florida requires a fictitious name (sometimes called a DBA) registration to be renewed every five years. The renewal fee is $50. This renewal is crucial for businesses to legally operate under their chosen name and maintain brand consistency in the state.

Operational Costs

Operational costs for an LLC in Florida can vary widely depending on the nature of the business. These costs include, but are not limited to, rent, utilities, payroll, marketing, insurance, and inventory. You might also need to carry workers compensation insurance, get a general liability policy, and more.

Effective management of these costs is crucial for maintaining profitability and ensuring the smooth operation of the business. LLCs should budget accordingly and monitor these expenses regularly to maintain financial health.

Other Florida LLC Costs to Consider

When establishing an LLC in Florida, small business owners should prepare for several additional expenses beyond the initial and ongoing state fees. These costs vary depending on the specific requirements of the business, the industry, and the location. Anticipating these expenses helps ensure that businesses can budget effectively and remain compliant with all necessary legal and financial obligations.

Specific Licenses and Permits

Depending on the type of business and its location, specific licenses and permits may be required to operate legally in Florida. For instance, a restaurant will need health permits, liquor licenses, and possibly local business licenses, whereas a construction business will require building permits and contractor licenses. 

The cost and process for obtaining these licenses vary widely. Florida business owners must contact relevant local and state agencies to determine the exact requirements for their specific business type, which will include fees for application, renewal, and potential inspections.

Certified Documents

There are scenarios where business owners might need certified copies of their LLC documents, such as the Articles of Organization or amendments to them. Certified documents are often required for legal proceedings, opening bank accounts, or registering for business licenses. 

In Florida, obtaining certified copies of an LLC’s business documents involves requesting them from the Florida Division of Corporations and paying a fee of $30 per document. This process can usually be completed online or through mail, providing a straightforward way for businesses to obtain the necessary certified documents.

Professional Services

Maintaining an LLC often requires the expertise of professionals such as accountants or attorneys, especially for tasks like complex tax filings or legal compliance. The cost of hiring these professionals can vary significantly based on the complexity of the services and the professionals’ expertise. 

Typically, accountants might charge an hourly rate or a fixed fee for annual services, which can range from several hundred to several thousand dollars per year. Legal fees for a good business attorney could be higher, especially if the business faces litigation or complex regulatory compliance issues. It’s advisable for LLC owners to budget for these professional services annually, considering them an investment in the LLC’s financial and legal health.

Calculating Your Total Florida LLC Cost

So how much will your Florida LLC cost? We can’t say for sure because every LLC is different. But here are the essentials you’re sure to encounter: 

• Articles of Organization: $125
• Annual Report: $138.75 per year

So in your first year of business, you can expect to pay at least $163.75 total for a Florida LLC. You’ll also need to budget for your utilities, supplies, and more, but those expenses are highly individualized. 

If you’d like an even clearer picture of your costs, you can consider using a tool like a free cost calculator. Be sure to make a list of your essential expenses, and also add costs like website setup, marketing fees, and legal and professional services. This approach will help you develop a realistic budget for your Florida LLC, helping ensure you’re prepared for planned and unplanned expenses.