Starting A Florida LLC: A Guide for Businesses & Contractors

Starting a Florida LLC can be one of the smartest moves you make as a contractor or small business owner. It helps protect your personal assets, sets up a clear legal structure, and simplifies how you handle taxes. 

According to the United States Small Business Administration, an LLC offers the flexibility many businesses need without the complexity of a corporation.

This guide will walk you through how to:

• Choose the right business structure and name
• Appoint a registered agent and file your paperwork
• Meet post-formation and tax obligations

Understanding Florida LLCs

A Limited Liability Company LLC in Florida is a popular business structure that combines the legal protections of a corporation with the tax flexibility of a sole proprietorship or partnership. LLCs are governed under Chapter 605 of the Florida Statutes and considered a legal entity under state law.

Key advantages of Florida LLCs

• Liability protection – Your personal assets are typically shielded from business debts or lawsuits, limiting your personal liability.
• Tax flexibility – LLCs are pass-through entities by default but can elect corporate tax treatment.
• Simple maintenance – Compared to corporations, LLCs have fewer paperwork requirements.
• No state income tax – Florida does not charge personal income tax, which benefits single-member LLCs.

Types of Florida LLCs

Florida offers two main types of LLC structures — single-member and multi-member — each with its own pros and cons depending on how you plan to run your business.

Single-member

Perfect for independent contractors, a single-member LLC offers simplicity while still giving you legal protection. Single member LLCs report income using Schedule C of your personal return unless you elect to be taxed as a corporation.

Multi-member

If you’re starting a business with partners, a multi-member LLC allows shared ownership. The IRS treats this as a partnership unless you opt for corporate taxation. Multi-member LLCs should also outline capital contributions and how profits and losses will be distributed in their operating agreement.

Read more: If you’re forming an LLC as part of launching a trade or service business, you might also want to read our step-by-step guides:

• How to start a plumbing business
• How to start an HVAC business

Name Your Florida LLC

Your LLC name sets the tone for your business, but it also needs to meet Florida’s legal requirements. It should be unique, clearly identify your business, and follow the rules set out by the state. 

In Florida, your LLC name must be distinguishable from any existing business names on record and must include the words “Limited Liability Company” or the abbreviation “LLC.”

You can use the Sunbiz business name search to check availability before you file. If your preferred name is available, you can reserve it for up to 120 days by filing a name reservation request and paying a small fee.

Keep in mind:

• Avoid names that could confuse your LLC with a government agency (e.g., “IRS,” “Treasury”)
• Certain words (like “bank,” “engineering,” or “insurance”) may require extra licensing or approval
• Your name must reflect a lawful purpose under Florida state law

For more detailed naming rules, check the official Florida Department of State guidelines.

This is also a good time to see if the domain name is available — ideally, you’ll want your website and email to match your LLC name to help customers find and trust your business. 

You can use services like GoDaddy to check and register domain names quickly.

Choose Your Registered Agent

Every Florida LLC must appoint a registered agent — someone who agrees to receive official legal and tax documents on behalf of your business. This includes things like court notices, subpoenas, and communication from the Florida Division of Corporations. It’s a legal requirement that helps ensure your business can always be reached for important matters.

Your registered agent must:

• Be at least 18 years old
• Have a physical address in Florida (no P.O. boxes allowed)
• Be available during regular business hours

You can appoint yourself or a trusted team member, but many businesses choose to hire a professional service to maintain privacy and avoid missing critical paperwork. This is especially useful if you work from home, travel often, or operate irregular hours.

Professional registered agent services typically cost between $50–$300 per year and often include extras like compliance reminders, online dashboards, or mail forwarding. If you want to keep your home address off public record, this small investment can be worth it.

For more guidance, visit the Florida Division of Corporations registered agent FAQ.

Prepare and File Articles of Organization

To form an LLC, file your Articles of Organization with the Florida Division of Corporations either online via Sunbiz or by mail. This is sometimes confused with Articles of Incorporation, which apply to corporations.

Required information:

• LLC name
• Principal office address
• Registered agent name and address
• Effective date (if different from filing date)

Total standard fee (for new or foreign LLC): $160 (as of 2025)

• Articles of Organization filing fee: $100
• Registered agent designation fee: $25
• Optional certified copy: $30
• Optional Certificate of Status: $5

You’ll receive confirmation in 1–2 business days if filing online, or 5–10 days by mail. For a full breakdown of LLC filing fees visit here.

Receive a Certificate from the State

After your Articles of Organization are approved, the Florida Division of Corporations will issue a Certificate of Status (sometimes called a Certificate of Good Standing). This official document confirms that your LLC has been legally formed and is compliant with all state requirements.

You’ll often need this certificate when:

• Opening a business bank account
• Applying for business licenses or permits
• Securing funding or credit from financial institutions
• Registering your LLC to do business in another state

Although optional during initial formation, many businesses order it upfront. The fee is currently $5 if requested at the time of filing. You can also request a Certificate of Status later if needed. 

Create an Operating Agreement

Although Florida law doesn’t require an LLC to have a written operating agreement LLC, having one in place is highly recommended — even for single-member LLCs. It’s the internal rulebook that helps you run your business properly, and in the event of disputes, audits, or legal challenges, it can be a critical asset.

A strong operating agreement should cover:

• Ownership percentages and capital contributions
• Profit and loss distribution methods
• Roles and responsibilities of each member or manager
• Voting rights and decision-making procedures
• What happens if a member leaves, passes away, or wants to sell their interest
• How the LLC can be dissolved

Banks, lenders, and even potential partners may request a copy of your agreement before working with you. It also reinforces your LLC’s separation from personal assets, which is key for maintaining liability protection.

You can use trusted LLC operating agreement templates as a starting point or consult with a small business attorney to tailor one to your situation.

Get an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is issued by the IRS and acts like a Social Security Number for your business. It’s used to identify your LLC for federal tax purposes and is necessary for a range of financial and operational tasks.

You’ll need an EIN if you plan to:

• Open a business bank account
• Hire employees
• File federal or payroll taxes
• Apply for certain business licenses or permits
• Operate as a multi-member LLC

The process to apply is quick and free. You can apply online through the IRS website, by mail (Form SS-4), or by fax. Online applications are processed immediately if completed during IRS hours.

What to Do After Forming Your Florida LLC

Obtain Your Florida Business License

Depending on your industry and location, you may need one or more licenses. Check with the Florida Department of Business & Professional Regulation and your local county office. If you’re forming a professional service business (e.g., electrician, HVAC technician), licensing is typically mandatory.

Establish a Bank Account

Open a separate business checking account using your Certificate of Status and EIN. Opening a business bank account keeps your finances clean and protects your liability shield.

File Annual Reports

All Florida LLCs must file an annual report with Sunbiz to maintain active status. The report is due by May 1 every year and costs $138.75. Late fees are steep — $400 if submitted after the deadline.

To go further, explore how to grow your new LLC with our how-to guides for different trades:

• How to start an electrical business
• How to start a handyman business
• How to start a cleaning business

Understanding Florida State Tax Requirements

While Florida doesn’t charge personal income tax, LLCs must still meet other tax obligations:

• Sales tax – Required if you sell goods or taxable services. Register with the Florida Department of Revenue.
• Reemployment tax – If you have employees.
• Corporate tax – Only applies if your LLC elects to be taxed as a C corporation.

Use QuickBooks’ Florida tax guide for detailed planning.

Obligations for Florida LLCs With Employees

If hiring staff, you must:

• Report new hires to the Florida New Hire Reporting Center
• Obtain workers’ compensation insurance (unless exempt)
• Withhold payroll taxes
• Display required labor law posters

Cost of Forming an LLC

New Florida LLC

Existing LLC

If you’re a foreign LLC (formed in another state) and want to do business in Florida, file a Foreign LLC Registration for $125.

Registered Agent Services

Some services, like Northwest Registered Agent, offer bundled LLC formation + agent packages.

Additional Services for Florida LLCs

Mail Forwarding Services

Useful for business owners who travel or work remotely. These services receive and forward mail on your behalf.

Business Consultation and Support

Consider using small business support services like local SCORE chapters or SBA-backed resources to plan growth, improve operations, or access funding.

What To Do After My LLC Is Approved?

Once you’ve received your state certificate and EIN:

• Store copies of your Articles, Operating Agreement, and Certificate
• Set up accounting or invoicing software (like our free Invoice Maker)
• Apply for relevant business permits or contractor licenses
• Review ongoing compliance deadlines

Filing Your Florida LLC Annual Report

To keep your LLC active, submit your annual report via Sunbiz each year between January 1 and May 1. You’ll need:

• Your LLC’s document number
• Updated registered agent or address (if applicable)

Start your report filing here.

Set Your Florida LLC Up for Success

Creating an LLC in Florida gives small businesses and contractors a solid legal foundation with room to grow. From protecting your assets to unlocking flexible tax options, it’s a smart move for most self-employed professionals.

Need help keeping your business organized after formation?

Try Invoice Fly’s Invoice Maker — it’s free and built for small businesses like yours.