9 Steps to Starting Your Florida Business

Florida is one of the best states in the US for entrepreneurs and small business owners. The Sunshine State has business-friendly laws, a low corporate tax rate, a strong economy, and a diverse workforce. You’ll also find a wide range of small business resources offered by different organizations throughout the state.

We know that launching a business can be overwhelming, so we’ve created this guide to starting a business Florida that covers all the essentials:

  1. Get Prepared
  2. Decide on Your Business Entity
  3. Name Your Business
  4. Appoint a Registered Agent
  5. Register Your Business
  6. Get an EIN
  7. Obtain Any Necessary Licenses and Permits
  8. Organize Your Finances
  9. Market Your Business

Get Prepared

Before you start your business, it’s a good idea to do some basic research and create a business plan, even if it’s minimal.

Taking some time to brainstorm and create a strategy for how you’ll move forward can really reduce your stress during the early stages of forming your business. Researching and planning can show you where you need to focus your energies, where your strengths are, and where you might need assistance.

For example:

  • What products and/or services will you offer?
  • Who are you main competitors, and what sets you apart?
  • Who are your target customers, and how will you reach them?
  • What ideas do you have for advertising? Will you start marketing before or after forming your business?
  • How will you sell your products (for example, at a brick-and-mortar location, online, or both)?
  • Will you rent or purchase a separate location for your business or work from home?
  • Will you hire employees?
  • What’s your operating budget? Will you need a small business loan or grant?
  • What are your goals, sales and otherwise?

The resources below have information about where you can get free business consulting and assistance with business planning.

There are numerous resources for new and small business owners in Florida that can help you start and grow your business. Here are a few of the big ones:

Choose Your Business Entity Type

Which business structure you choose will depend on how many owners your business has and what industry you’re in. Common business types include sole proprietorships, general partnerships, and limited liability companies (LLCs), and corporations.

Expand the accordions to learn more about each entity type.

As the name implies, a sole proprietorship is owned by just one person. A sole proprietorship is not registered with the state and is therefore a common choice for freelancers, side-hustlers, and gig workers, especially when they’re just starting out.

Sole proprietorships are easy to set up, allow owners to have full control over their business, and often have low operating costs. However, because there’s no legal separation between business and business owner, sole proprietors take on full personal liability for all business debts and any legal actions taken against the business.

As a sole proprietor, you’ll pay personal income tax using a Schedule C form.

An unregistered business with more than owner is a general partnership. As with sole proprietorships, the owners of a general partnerships are personally liable for business debts. In a debt settlement, your personal assets, such as your home, car, and savings, could end up at risk of collection.

At tax time, you’ll file Form 1065 to report the partnership’s income. Then you’ll pay personal income tax on your earnings from the partnership (since the type of income you can receive from a partnership varies, you may want to consult an accounting professional regarding the appropriate form).

An LLC is a type of business that you form by registering with the state. Unlike a sole proprietorship or general partnership, an LLC is its own legal entity, separate from its owners. Because of this, owners are granted limited liability protection in cases where the business is sued or owes debts. Typically, owners are only personally liable for debts up to the amount they invested in the business.

In terms of organization, LLCs offer owners (referred to as “members”) with a great deal of flexibility. An LLC can be owned and managed by one or multiple members. Members can also hire managers to run the business for them.

For tax purposes, LLCs are considered “pass-through” entities. LLC profits pass through to the members, who pay income tax using a Schedule C or other appropriate form (consult an professional if you’re not sure). If you choose, you can also elect to file as another entity type, such as an S-Corp.

Another advantage of LLC formation in Florida is that although you cannot form an anonymous LLC, you can maintain your anonymity with the Double (Private) LLC structure. Our Double LLC Package allows you to create two LLCs that manage each other so you can keep your name off the public record. With us as your registered agent, you can also keep your address private by using our permanent business address instead.

Like an LLC, a corporation is formed by filing paperwork with the state, which creates a legal business entity. Corporations also provide owners, referred to as shareholders, with liability protection. Unlike an LLC, however, corporations have a complicated management structure (officers, a board of directors) and can have much higher operating costs.

Corporate profits are general taxed twice: once at the level of the business and then again on shareholders’ personal income taxes. The current corporate tax rate in Florida is 5.5%, which is relatively low, and there’s no personal income tax.

For many small business owners, starting an LLC is the preferred choice. With an LLC, you’ll get liability protection and flexible management, plus simple formation and tax options.

If you choose to create a formal business entity such as an LLC or corporation, we offer an affordable, value-packed business formation service.

Order our business formation service and receive a 90-day free trial of our web & virtual phone services!

This package allows your to build a professional, polished website and keep your personal contact information private with a business email and phone line.

Our Florida Business Presence web & phone package includes:

  • Domain name of your choice (ex: “YourBusinessNameHere.org”)
  • Website with SSL security built on easy-to-customize templates
  • Up to 10 email addresses at your domain (ex: “[email protected]”)
  • Virtual phone service & a number with a local Florida area code

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.

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.

Name Your Business

Choosing a name might seem like the easiest part of starting a business in Florida, but that’s not always the case.

On top of selecting a name that is memorable and describes your business well, here some ideas to keep in mind:

You can’t use a name that is already registered to another business in Florida or one that is a trademarked in Florida or the US.

You can check availability using the following databases:

If you form a legal business entity like an LLC or corporation, you’ll need to obey Florida naming rules. Your name must:

  • Include an entity identifier. For example, you could use “LLC” if you form a limited liability company. Similarly, “Inc” or “Incorporated” identifies a corporation.
  • Avoid the use of restricted words, such as “bank” or “attorney” (unless they apply to your business).
  • Avoid any phrase that suggests your business is a government agency or associated with one.

Like many business owners, you’ll probably want a website for your company. And you’ll probably want the web address for that site to be as similar to your business name as possible. For example, we’re Florida Registered Agent LLC, and our domain name is FloridaRegisteredAgent.net. Our domain supports our branding and is easy to remember.

If you’re set on having a domain that exactly matches your business name, make sure you check that it’s available before setting your business name in stone.

When you order our Florida Business Presence website & phone services package, we give you a list of possible domains based on your business name. Our agents can even offer you one-on-one assistance as you decide.

Appoint a Registered Agent

A registered agent is a representative you designate to accept legal notices and other government documents on behalf of your business. If you form an LLC, corporation, or other business type registered with the Sunshine state, you’ll also need a Florida registered agent. Your registered agent’s name and address must be listed on the formation paperwork you file with the state.

You can appoint an individual or hire a business that offers registered agent services to fulfill this role as long as they meet the state’s requirements. Your registered agent must have a physical address in Florida where they are available to receive documents during regular business hours. And if your registered agent is an individual, they must also be over 18.

While you can serve as your own registered agent, there are benefits to hiring a service (like us):

  • Convenience: You don’t need to be available at your registered address M-F during normal business hours all year around. This is helpful if you want to work in multiple locations, go on a business trip, or take a vacation.
  • Reliability: We’ll never miss a document, and we scan and upload your documents to your online portal as soon as we receive them. And once they’re uploaded, we notify you immediately.
  • Privacy: Limit the amount of personal information put on the public record when you file your formation documents by using our business address instead of a personal address. This is especially useful if you work from a home office—you won’t get served at home.

Because we own our building, you can use our business address as your registered agent and principal business address if needed. Doing so can not only increase your privacy but also make the process of starting your business a bit easier.

For example, you may have to register your company so can rent or purchase property in the name of your business, but you also need a business address in order to your company registered. Using our service can help you solve that problem.

(PS—Starting off as a sole proprietor or general partnership? You’re off the hook!)

Register Your Business

Registering your business will vary a little depending on which business entity type you chose.

If you’re starting an LLC or a corporation, you’ll need to file your formation paperwork and pay your filing fees.

If you’re just operating as a sole proprietor or with a business partner in a general partnership, you can skip that step, but you may be interested in filing for a fictitious business name, or DBA.

Once you have a registered agent, you’re ready to make it official and file your formation paperwork with the Florida Division of Corporations.

LLCs file Articles of Organization ($125) and corporations file Articles of Incorporation ($70).

On these forms, you’ll have to list basic information about your company, such as the owners’ names, principal address, and registered agent’s name and address.

The most convenient way to file is online using SunBiz. After your articles have been approved, the state will send you a certificate of formation. Processing typically takes about 5 business days.

If you start an unregistered business, the legal name of your business is simply your own name. That’s where a fictitious business name, or Florida DBA, comes in handy. Getting a DBA (“doing business as” name) allows you to operate under a more professional or descriptive name.

Registered businesses can also get DBAs to re-brand or run multiple branches or business lines with different names under the umbrella of a single company.

Just keep in mind that a DBA will not provide your business with any legal protections. If you want to limit your liability as a business owner, you’ll need to go with an LLC or corporation.

Get an EIN

An Employer Identification Number (EIN) is a nine-digit number used to identify your business to the IRS when you file taxes. Getting an EIN is required for most registered business entities.

If you own a single-member LLC, you can use your SSN to file taxes. However, you may consider getting an EIN to protect your personal information, since you may be required to provide your tax ID when setting up a business bank account or applying for a loan.

You must obtain an EIN if your business:

  • Has more than one owner
  • Hires employees
  • Is (or is filing as) a corporation

You can apply for an EIN through the IRS for free. You request your EIN by mail, fax, and even by phone if you’re an international applicant, but the online EIN application is the quickest and easiest method.

Obtain Any Necessary Licenses and Permits

There isn’t a statewide general business license in Florida, but depending on what kind of work you do and where your business is located, you might need a professional or industry-specific license or permit. For example, if you’re a massage therapist, you’ll need to be licensed. If you want to serve alcohol at your restaurant, you’ll have to get a liquor license.

You can find out which licenses you may need using Florida’s Official Business Information Portal. Licensing and permit requirements may vary by county or city, so be sure to check at both the state and local level. For instance, in Jacksonville you may have to get a Certificate of Use.

In Florida, there are there main licensing agencies:

Or, you can refer to the Department of State’s Division of Library and Information Services’ list of state agency homepages to find the agency you need.

Licensing and permit costs and renewal rules vary by professional and license type.

Organize Your Finances

Keeping on top of your finances and making sure there’s no overlap between your business and personal funds is extremely important, especially if you own an LLC or corporation. Registered business entities have liability protection, but this protection can be disregarded in situations where owners have commingled their personal and business assets, called “piercing the corporate veil.”

Here are some of the basic steps to starting off on the right foot financially:

Opening a business bank account keeps your personal finances separate from your business assets. Mixing up your finances can make filing taxes difficult and have negative consequences if you get audited.

When shopping for a business bank account, here are some traits to look for:

  • High interest rates (APY) for savings and checking
  • Low or no monthly or annual fees
  • Low minimum account balance requirement
  • Low transaction fees
  • Low interest rates (APR) for lines of credit if you plan to get a loan

When opening your account, you’ll usually need to bring personal identification and contact information, a copy of your formation paperwork, and copies of any DBA registrations or business licenses. You’ll probably also need your company’s EIN.

Many small businesses are self-funded, and if you don’t have many upfront costs, you may not need much capital to get yourself off the ground.

But if you do, especially if you want to be prepared to meet demand as you business grows, you may need to explore funding options. Here are some popular funding avenues:

  • Loans from friends or family: Borrowing from friends or family can be a quick way to fund your business without a lot of red tape. However, you’ll need to make sure the funds are given to you in the name of the business and be clear about what your investor expects in return. Accepting loans from friends or family can lead to rocky relationships if you’re not able to repay them or if they don’t feel that they’ve gotten an adequate return on investment.
  • Crowdfunding: With the advent of internet advertising and social media, crowdfunding has become an increasingly popular way to finance businesses and business projects. Popular crowdfunding sites for business include Kickstarter, Indiegogo, and Patreon.
  • Startup loans: Startup loans are commonly available through traditional banking institutions and online lenders. But be careful–startup loans can come with high interest rates and short repayment periods.
  • Small Business Administration (SBA) loans: The US SBA partners with lenders to help small businesses get better access to loans with affordable rates and flexible loan requirements. Some loans programs even provide ongoing business support. Loans amounts range from $500 to $5.5 million. Find out more through the US SBA loan program.
  • Small business grants: Small business grants are offered by a variety of sources, from the state government to community organizations. The best part about getting a grant is that you don’t have to pay it back, which can really ease your financial burden as you’re starting out. If your business is minority-, woman-, or veteran-owned, be sure to look for grants aimed at assisting your demographic. Here are some grant sources and ways to search for grants:

Luckily for Florida residents, there’s no state income tax in Florida. So, if you’re a sole proprietor or own an LLC, you’ll only need to pay federal income tax.

If you own a corporation, your company will need to pay the 5.5% corporate tax on all earnings over $50,000.

Florida does change a 6% Sales and Use Tax on the sale of all taxable items and services, and counties add their own sales tax on top of that, so you’ll need to register for this tax and figure out what the rate is in your county.

Some industries must also pay additional taxes based on the products and services they sell—for example, if you run a gas station, you’ll need to pay Fuel Tax.

Florida’s Official Business Information Portal and the Department of Revenue’s  New Business Start-up Kit can help you figure out which taxes you’re required to pay.

Register to pay your taxes using the Department of Revenue’s e-Services Enrollment portal.These blocks support lists, in case you were curious.

Some professions and industries have specific insurance requirements (medical professionals, contractors). Even if your industry doesn’t have any insurance requirements, getting business insurance is a way to help protect your investment.

Depending on your company, you may need general liability or commercial property insurance. Business interruption insurance can also help if you have to cease operations due to a natural disaster or other emergency.

And if you hire employees, you may be required to purchase Worker’s Compensation Insurance. You can find out more about worker’s comp coverage requirements through the Department of Financial Services.

Market Your Business

Successful businesses are built on successful marketing strategies. Once you’ve built your brand, you’ll need to promote you business online, on billboards, on the radio, or however else you want to reach your customers. Here are a couple elements to consider:

Create Your Website

When you’re just starting out, a website is the fastest and easiest way to get the word out about your business. You’ll want to build a site that shares your company’s story and clearly explains your products and services. Making sure that your site’s colors, logo, and general vibe work with your branding will help clients get a firm idea of who your company is and remember you later.

One important aspect of a website is your domain name, or web address. For example, our domain is FloridaRegisteredAgent.net. Choosing a domain that is similar to your business name can help customers find and remember your site.

Through our Florida Business Presence package, we offer affordable web and phone services, which include a customized domain name and easy-to-use website template. Our web services team will even help you set up your site for free! Add Florida Business Presence to Registered Agent or Business Formation service at checkout.

Protect Your Intellectual Property

A final consideration is protecting your intellectual property with a trademark. A trademark can keep other businesses from using a business name, phrase, or image coined by your company so that no one can steal your ideas or capitalize on your reputation (without consequences). Sign up for our trademark service at checkout or in your client account.

Florida Business FAQs

How much does it cost to start a business in Florida?

The cost of starting your business will vary depending on your business structure and what kind of preparation you need to get your business running (manufacturing stock, renting a building, training employees, and so on). Filing formation paperwork to register an LLC with the state of Florida will cost you $125.

Do I need a Florida registered agent?

If you form a business like an LLC or corporation, you are legally required to have a Florida registered agent. You or someone at your company can serve as your registered agent, but it’s often more reliable and convenient to hire a registered agent service so that you never miss an important document. Plus, if you hire us, you can protect your privacy by using our Florida business address instead of your own, which keeps your address off the public record.

Do I need a license to start a business in Florida?

Whether or not you need a license will depend on your business. Because there’s no general, state-level business license in Florida, many businesses don’t need licensing. However, if you work in a specialized field or certain industry like health care or food service, you’ll probably need a license or permit to operate.

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