Florida is known as the “Sunshine State” and it is the third most populated among states in the USA. The business-friendly environment of Florida permitted companies worldwide to connect and develop in major industries, due to the varied and reliable benefits and policies offered by the government. Florida aligns with the global powers that offer favorable tax regimes and a stable business climate which attract investors on a daily basis. In order to understand the requirements of how companies can be registered, we invite you to read the general guide to company incorporation in Florida. We also mention that our company formation agents in USA are at your disposal with complete support in matters of business registration in Florida.

How to establish an LLC in Florida

Limited liability companies are popular business entities which suit most of the activities an entrepreneur wants to perform in Florida. The advantage of such an entity is that there is no need for board meetings. The Articles of Association must comprise the name of the company, the business address, the names and the signatures of the owners and managers, the date of incorporation and also the purpose of the business. One should consider that a $125 fee is mandatory for the incorporation. Also, your company in Florida cannot activate on the market without a registered agent which can be either a natural person, who is in charge of the company’s documents, or another business entity domiciled in Florida. Please consider that our company formation representatives in USA may represent your company and can act as a registered agent. Here are a few steps to consider when opening an LLC in Florida:

1. Collecting information about the business owners (names, addresses) will be necessary for drafting the company’s documents.
2. When deciding on the business name, one needs to verify with the Florida Department of State for its availability.
3. The next thing to do is to establish the business address which can also be your personal domicile in Florida.
4. A registered agent for your LLC in Florida is the next thing to consider, mentioning that he/she needs to reside in this state.
5. The EIN or the Employee Identification Number needs to be obtained from the Internal Revenue Service when registering for tax purposes.
6. The Articles of Association are then drafted with the Florida Department of State.

If you decide on opening an LLC in Florida and you would like complete support in this matter, we recommend you to get in touch with our team and solicit detailed information. It is recommended to focus more on the business instead of dealing with the formalities for opening a company in USA, including in Florida, by addressing your inquiries to our team of consultants.

Other types of business forms in Florida

Besides the limited liability company in Florida, an entrepreneur can discover also the benefits of other types of entities like the S Corporation which can have even 100 shareholders, without being subject to corporate taxes, the C Corporation which has about the same attributes as the one mentioned above with the difference that there is no limit regarding the owners, but subject to taxes on revenues, and the sole proprietorship for which there is no need to file the documents of incorporation.

Taxes for companies in Florida

Companies in Florida are subject to a sales tax of 6% which is imposed on sales or rental of products; the medical equipment and a particular type of foods are exempt. Even though not all companies are required to pay the corporate tax, the C Corporation is subject to a 5.5% tax rate on profits. As a reminder, sole proprietorships and S Corporation are not obliged to pay income taxes, an important reason why entrepreneurs decide to do business in Florida.

Companies with employees in Florida will have to be registered for re-employment tax with the Department of Revenue in Florida. In the same area of taxation, limited liability companies are seen as pass-through entities, meaning that the taxation is made on the incomes of each member of the company as established by all shareholders in the operating agreement. Here are the taxes you need to consider in Florida:

• The sales tax is imposed for companies selling goods and services in this state.
• The franchise tax and the privilege business tax are not imposed in Florida.
• The corporate income tax of 5.5% is imposed for corporations in Florida.
• One needs to observe the unemployment insurance tax for unemployment benefits in Florida.

Do I need licenses and permits for my company in Florida?

Yes, it is mandatory to observe the requirements for obtaining the necessary licenses and permits before running your activities in Florida. For example, federal business licenses and permits can be obtained from the US Small Business Administration in Florida. As for the local permits (building, signage, health, alarm, zoning and occupational permits), these can be obtained from the local offices in charge of issuing the necessary certifications for running a business in Florida.

Looking to incorporate your business in Florida? Besides reading this general guide to company formation in Florida, we kindly recommend you to solicit support and detailed information from our team of company formation agents in USA and skip all the complex formalities which might occur during the registration process.

Workforce in Florida

The private and public sectors in Florida are in a solid collaboration with the purpose of improving the workforce in Florida. The labor market comprises skilled workers speaking two or three languages and furthermore, future employees have the possibility of attending courses of specialization and training sessions at different recognized centers. If you want to open a company in USA, and especially in Florida, you can rely on the highly skilled workforce which can be met in various industries.

Promoting your company in Florida on the internet

Establishing a business in a competitive market like Florida should solicit complete attention in matters of promoting the company. A website is recommended for each type of business, whether small or large, in order to present the company’s products and services. Social media is also a solid marketing tool which met a significant expansion in the past few years as businesses can easily gain awareness. There are numerous web design firms which can structure your business online.

Virtual office services for your firm in Florida

Opening a company in USA, and principally in Florida, may have or may not have a traditional business office. One can launch the activities in the state by using the services of a virtual office which can be offered on request by our company formation representatives in USA. Mail and correspondence, call forwarding, a local phone number, a business address in Florida and company information for future partners or collaborators are only a few of the services related to the virtual office in Florida.

FAQ about business in Florida

1. What is the first step for opening a company in Florida?

The first thing to do is to decide on the business structure, like an LLC, a corporation or a sole proprietorship. A name verification is needed in order to see if the chosen name is valid and to avoid the cases of picking the wrong name or one that it is already in use.

2. How do I register the business in Florida?

Florida Department of State Division of Corporation works as a one-stop-shop system to both local and foreign entrepreneurs wanting to register a company in Florida. You might want to check the needed business licenses before running the company in Florida.

3. Do I need a representative agent for my company in Florida?

Yes, a representative agent with residence in Florida is needed for opening your business. He or she will be in charge of varied tasks like receiving the official documents of the firm. Our consultants are at your service if you are looking for a registered agent for your firm in Florida.

4. Can I receive support for drafting the necessary documents?

Yes, our company formation agents in USA are at your disposal with comprehensive support in matters of drafting and submitting the needed documents for your business. We can explain the requirements for preparing the Articles of Association among other important documents.

5. Do I need to file an annual report?

Yes, LLCs and corporations established in Florida must draft the annual report and register the company’s financial operations (including taxes). Florida Department of Revenue is the institution in charge of tax compliance for companies in this state. If you are looking for support in tax matters, you may address your inquiries to our team of consultants at any time. Accounting services can be provided on request.

Why should you open a business in Florida?

Tourism is the engine that sustains Florida and represents an important source of income in the state. For example, more than 50 million tourists visit each year the famous Walt Disney World Resort. Tallahassee (the capital of the state), Miami, Pensacola, West Palm Beach, Naples, Daytona, Tampa, Jacksonville and Miami Beach are only a few of the well-known cities of Florida. Besides tourism, the aviation sector, agriculture, the international trade, the financial sector and the science field are also major domains with full potential and lots of opportunities for investors worldwide.

Florida is known as the low-tax state for its beneficial tax structure that helps foreign investors expand their activities in a stable and very much appreciated business climate. The main benefit of the tax system in Florida is that there is no state income tax. We invite you to discover the information about the tax regime in Florida and to get in touch with our team of company formation specialists in USA for support. Our advisors are at your disposal if you want to start a business in USA, including Florida.

What is the sales tax rate in Florida?

The general sales tax in Florida is set at 6%, with the mention that municipalities in Florida can collect their own sales taxes not exceeding 2%. However, the highest sales tax rate in Florida is 7% and it is collected in most of the counties.

The federal corporate income tax in Florida

There are eight tax brackets, depending on the incomes registered, for which the corporate income tax is levied, as seen in the table below:

Incomes Marginal Corporate Tax Rate
Up to $50,000: 15%
Between $50,000 and $75,000: $7,500 + 25% on the amount over 50,000
Between $75,000 and $100,000: $13,750 + 34% on the amount over 75,000
Between $100,000 and $335,000: $22,250 + 39% on the amount over 100,000
Between $335,000 and $10,000,000: $113,900 + 34% on the amount over 335,000
Between $10,000,000 and $15,000,000: $3,400,000 + 35% on the amount over 10,000,000
Between $15,000,000 and $18,333,333: $5,150,000 + 38% on the amount over $15,000,000
More than $18,333,333: $6,416,667 + 35% on the amount over $18,333,333

Taxation for LLCs in Florida

The individual LLC members are responsible for paying the federal income taxes in Florida. Most of the limited liability companies in Florida are treated as corporations when it comes to taxation and they pay a 5.5% rate for corporate income tax in Florida.

Does Florida impose a franchise tax?

No, there is no franchise tax in Florida. Also, there is no privilege tax imposed on businesses in Florida. However, there is an alternative minimum tax or AMT as it is known of 3.3% applicable after taking into account any federal tax exemption declared on the company’s tax return.