How to Start a Business in Florida as a Non-US Resident
Learn About How Florida Business Formation Works for International Citizens
You don’t need to be a resident of Florida or even the United States to start a business in the Sunshine State. In fact, you can start a stateside enterprise from anywhere in the world.
In Florida, the business formation process for non-US citizens is virtually identical to the process for Americans. However, there are a couple key differences that you can learn about in our handy guide.
Looking for more hands-on assistance? Florida Registered Agent LLC provides an array of business filing services, all of which include registered agent service plus complimentary use of our Florida business address.
Business Formation Basics for International Citizens
Forming a business as a non-US resident requires that you complete and file the necessary paperwork for your specific desired entity with the Florida Division of Corporations. We’ll go over this in greater detail below in our step-by-step guide.
Information required to form a business in Florida:
- The name of the company
- Florida Registered agent information
- An authorized signature
Business formation filing fees:
When you submit the paperwork, you must also pay a filing fee to the state.
The filing fees are as follows:
- LLC: $125 ($100 to file Articles of Organization + a $25 registered agent designation fee)
- Corporation: $70 ($35 to file Articles of Incorporation + a $35 registered agent designation fee)
Filing methods:
Filings can be made in-person, via mail, or online.
Additional filing information:
For both LLCs and corporations, in addition to the formation document and the filing fee, you must also submit a cover letter that contains your name, address, and telephone number.
Understanding Business Entity Types
Depending on your business goals, you’ll need to select the entity type that works best for you and your company. We’ll cover the two most popular options: the Florida LLC and the Florida corporation.
What is a Non-US Florida LLC?
If you’re forming an LLC in Florida and you live outside of the United States, Florida will be considered your domestic state (the home state for your LLC). If you want to operate your business in any other US state or territory, you’ll have to complete the foreign entity registration process in that jurisdiction.
There’s no difference between an LLC that has been formed by a non-US citizen and one formed by a US citizen. They operate in the exact same way and are required to submit the same initial materials as well as the same ongoing information on an annual report.
However, when it comes to taxes, there are some more nuanced rules for non-US business entities that are important to take a look at before committing to which entity you prefer
What is a Non-US Florida Corporation?
The process of forming a non-US corporation in Florida is very similar to the process to forming a corporation as a US resident. Once your corporation has been formed, Florida is your domestic state (the home state for your corporation). In order to operate in any other state or territory, you’ll register your corporation to do business in that state or territory.
As a non-US resident, you are still required to pay US corporate taxes. You’ll also have to complete all typical bureaucratic tasks involved with running a corporation, such as electing a board of directors, issuing shares, and holding an annual meeting.
What are the differences between LLCs and corporations?
While both LLCs and corporations are legal business entities, there are distinct differences between the organizational structure and default tax classifications of each entity type.
Notes on taxes: If your business has employees, owns property, or engages in any kind of business activity that requires you to collect sales tax, you may need to pay some Florida state taxes. Additionally, it’s important to note that the federal tax rate for any personal income classified as “effectively connected” to a US trade or business is the same as the personal income rate for US citizens. However, any income that you have as a resident alien that isn’t effectively connected to US sources is taxed at 30%.
LLCs
Structure: Flexible
- Can be managed by members or hired managers
- Members control the management structure
Taxation: Pass-through
- No state or federal taxes at the entity level
- Profits and losses “pass through” the entity to members
- Members pay personal federal income tax on their earnings
- Members can choose to be taxed as a corporation if desired
Reputation: Ambitious
- Newer business entity type (1970s)
- Simple formation process
- Often used by smaller or younger businesses
- Favored by startups
Corporations
Structure: Rigid
- Managed by officers, who are elected by a board of directors, which is elected by shareholders
- Management must follow set rules (for example, the CEO of a public corporation is always answerable to the board)
Taxation: C-Corp
- 5.5% Florida state corporate income tax
- 21% federal corporate tax
- Owners pay personal federal income tax on their earnings
Reputation: Prestigious
- Traditional and established entity type (1600s)
- More complicated formation process
- Often used by larger or older businesses
- Favored by investors
Step-by-Step Guide to Starting a Business as an International Citizen
Here is a brief step-by-step guide to forming an LLC or corporation in Florida as a non-US citizen.
Name Your Company
The first step in forming your company in Florida is choosing a name for either your LLC or your corporation. The name must be distinguishable from any other legal business entity on file with the Florida Division of Corporations. You can do a quick search on the Sunbiz business name search tool (the official Florida Division of Corporations website) beforehand to make sure the name you want is available.
Hire a Registered Agent
All legal business entities are required to have a Florida registered agent if they want to do business in Florida. A registered agent is an individual or a legal entity that has a physical address in Florida and agrees to be listed as the registered agent for your company, thus assuming the responsibilities of such. These responsibilities include receiving any legal correspondence from the state of Florida on behalf of your company.
If you are located outside of the US, it is necessary that you hire a registered agent if you want to form a company in Florida. If it wasn’t obvious by the name, that is a service that Florida Registered Agent LLC offers. We serve as a registered agent for US business owners as well as foreign business owners, and our service includes the free use of our Florida business address.
Additionally, our Florida registered agent service includes mail scanning 3 pieces of non-state mail per year. And, if you need more extensive mail coverage or a unique Florida mailing address for your business, you can upgrade to one of our three paid Florida mail scanning service packages.
File the Articles of Organization or Articles of Incorporation
Once you have chosen the name of your business and hired a registered agent, you have all the information you need to complete the Articles of Organization or Articles of Incorporation.
You can obtain a PDF copy of these documents and complete them by hand for a mail or in-person submission, or you can enter the required information online to file digitally. If you hire Florida Registered Agent LLC to form your LLC or corporation for you, we will complete these steps and form your business on your behalf.
Obtain an EIN
One of the biggest differences between forming a company as a non-US citizen and as a citizen is the process to obtain an EIN.
EIN stands for “Employer Identification Number.” It is a unique, nine-digit number issued by the Internal Revenue Service (IRS) for tax purposes. It requires that the applicant provide a social security number, which is a number unique to a US citizen.
To get an EIN as a non-US citizen, follow the IRS instructions for international EIN applicants. The application is simple, the instructions are straightforward, and the process is free. Once you have your EIN number, you will be able to pay the necessary US taxes to keep your business in operation.
Open a Bank Account
One of the most important—and most difficult—steps for solidifying your company in the US is opening a domestic bank account. Often, this step actually requires a trip to the United States.
You will be required to provide all business formation and legal documents relating to your business. This is a step of the process that we do not assist with, and we warn our clients to be wary of anyone that does. Cutting corners here carries severe legal ramifications that can derail your business goals.
Pay US Taxes as a Nonresident
You are still required to pay US taxes as a nonresident. Since nonresidents cannot be members of an S-corporation, it is likely that your business entity will either be an LLC or a corporation.
Corporations formed by nonresidents will pay the same corporate taxes as any other corporation. However, you will only have to pay taxes on your US-sourced earnings. For LLCs, any US-sourced earnings are taxed at 30% and must designate a tax withholding agent to calculate the correct amount owed to the US.
Get a Website, Email, & Phone with Business Formation or Registered Agent Service
Order our business formation services and receive a 90-day free trial of our web & virtual phone services!
This package allows you to build a professional, polished website and keep your personal contact information private with a business email and phone line.
Plus, our web services team offers zero-cost, individualized assistance setting up your website. If you have any questions, give us a call during business hours. We’ve got REAL people standing by to help you through the process.
Add Florida Business Identity at checkout.
- Domain name of your choice
- Website with SSL security
- Up to 10 email addresses at your domain
- Phone service with a local FL area code
Domain service is free for a full year (up to $25 value) with affordable renewal options ($25 a year on average). All other services are free for 90 days, and then $9/month after that. If you keep all of the services after the trial, you get a 20% discount ($21.60/month).
Frequently Asked Questions
What if I need an apostille to use my documents outside of the US?
We also offer convenient apostille service for an additional fee. This is super easy and a good preemptive step to take while you have the option.
What kind of maintenance is required for a business owned by a non-US resident?
Florida LLCs formed by non-US residents are required to file an annual report with the state. This report must be filed online through Sunbiz. For LLCs, there is a $138.75 fee. The filing window for LLC annual reports is January 1st through May 1st.
Nonresident-formed corporations are also required to file an annual report. There is a $150 fee, and the report must be filed online within the annual report window (January 1st – May 1st, the year after formation).
What’s the easiest way to get an EIN as a non-US resident?
Getting an EIN without a social security number is not impossible, but it takes a little longer than it does for someone with an SSN. If this is a stress you’d rather avoid, Florida Registered Agent LLC can take care of this task for you. Just select the add-on option at checkout to have us complete all the steps required to get you an EIN and jumpstart your business formation process.
What should I look for in a registered agent service?
Stability is the number one thing to look for in registered agent service. You want to choose a company that is reliable, has been around for a while, and knows what kind of quality service business owners need to have the upper hand. Florida Registered Agent LLC gives you the business advantage and takes the edge off the stress of running a US business from another country.
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