As a follow-up to our last post, we will show the steps for turning your (profitable) side business into an LLC. For simplicity’s sake, the Florida process is covered.
Forming an LLC in Florida is a simple and affordable process that can be done on your own. By following these three steps, you can set up your LLC and be on your way to doing business in the Sunshine State.
Step 1: Choose Your LLC’s Name
The first step in forming an LLC in Florida is choosing a name. Before you choose a name, it is important to search the state records to make sure no one else has a business with the name you wish to use. You can do this quickly through the Florida Department of State’s business entity search engine. If you are not ready to start your LLC right away, you can reserve your LLC business name by submitting a letter to the Secretary of State.
It is important to follow the state rules regarding business naming practices. For example, by law, the words “limited liability company” or the abbreviation “LLC” or “L.L.C.” must appear as part of the official name. Note: You may want to make sure the domain name is available for the corporate name you choose, should you want to make a website!
Step 2: Designate a Registered Agent
Each LLC must have a registered agent. In short, a registered agent is either an individual or a legal service firm that accepts official mail and correspondence on behalf of your business. Florida allows an owner or employee to act as the registered agent, as long as they are a Florida resident who is 18 or older and has a physical address within the state. Our friend suggested https://www.floridaregisteredagent.net.
Step 3: Submit the Florida LLC Articles of Organization Form
Once you have a name and registered agent in mind for your Florida LLC, you will need to file all necessary documentation with the Department of State’s Division of Corporations. You can file online through Sunbiz.org, or you can complete and mail a paper form. Domestic and foreign LLCs require separate paperwork, but Florida charges the same fees for both entities.
It’s important to note that Florida is not a state where every business must apply for a business license. State business licenses are not required unless you are conducting certain business activities. If your industry is a regulated industry, you may need to obtain a state license. Many Florida cities and counties have local business license requirements. In addition, if you will be selling or leasing tangible property, you will need a seller’s permit from the Florida Department of Revenue.
In conclusion, setting up an LLC in Florida is a straightforward process that can be done by following these three steps: choosing your LLC’s name, designating a registered agent, and submitting the Florida LLC Articles of Organization Form. While it’s important to check for any additional requirements or licenses that may be needed for your specific industry or location.
Good info. When should you get a Tax ID number for your small business? Is it necessary and what the advantages / disadvantages?
Thanks, Rusty. A Tax ID number (also known as an Employer Identification Number or EIN) is necessary for most small businesses in the United States to identify themselves for tax purposes. It is usually required when you have employees, open a business bank account, or have a business structure that requires it, such as a partnership, corporation, or LLC–which we suggest.
You should apply for an EIN as soon as you start your business or decide on your business structure. The process of getting an EIN is simple and can be done online or by mail.
Advantages of having an EIN:
Helps distinguish your business from others for tax purposes
Allows you to open a business bank account and apply for loans
Helps you comply with tax laws and regulations
May be required for certain business activities, such as hiring employees or registering with state agencies.
Disadvantages:
There is a cost associated with obtaining an EIN
Keeping accurate and up-to-date records is important to maintain compliance with tax laws and regulations.