Starting a Business in Florida

Step 1: Decide on a Business Structure

There are 3 basic options: a DBA, a Corporation or an LLC.

• A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
• A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding.
• An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.

Step 3: Register the Business

How to form an LLC in Florida

• File the correct paperwork with the Florida Department of State Division of Corporations
• Hire a professional Registered Agent
• Hold an Organizational Meeting (yes, even for 1 person LLCs)
• Optional: Elect S-Corporation status with the IRS by filing IRS Form 2553. Yes, even an LLC can choose to be taxed as an S-Corporation (or even a C-Corporation).

How to Incorporate in Florida

• File the correct paperwork with Florida Department of State Division of Corporations.
• Hire a professional Registered Agent
• Hold an Organizational Meeting
• Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553.

Step 5: Open Company Accounts: Bank and Credit Cards

Open a separate account for your business. In addition, getting business credit cards will get you started with building your business credit rating. Typically, to open a business bank account you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).

Step 7: Annual and Ongoing Requirements

DBA: Your Fictitious Business Name should be valid for 5 years (unless you change company name or other information listed on the FBN) at which point you’ll need to renew it with the county.

LLC: Florida LLCs are required to file an annual report, due May 1 every year, which has a filing fee of $139.

Corporation: Every year you’ll need to file the “Statement of Information” or Annual report which updates the state on your business address and other things. Florida corporations can efile. There is a $400 late fee for all for-profit corporations who do not make the May 1 deadline.

Franchise Taxes: Florida requires a franchise tax due on the last day of the month in April, June, and September, as well as on the last day of the tax year. This is calculated as a percentage of the company’s net income for that year.