Limited liability companies are a type of business entity in the United States that protects its owners from liabilities and debts of the company. Rather than form as a corporation, or operate a partnership, forming an LLC offers flexibility along with protection, including pass through taxation. However, there are various fees that accompany forming an LLC.
What are LLC Expenses and Fees in Florida?
If you are considering forming an LLC in Florida you should be aware of the fees that you are required to pay during the startup process and annually after.
Starting Cost to form an LLC
Each state has different fees that accompany formation. The filing fee is a one-time fee that should be paid to the secretary of state. It accompanies documents such as the articles of organization. Filing fees can be as low as $40, while in other states it can range as high as $500. The average filing fee in 2021 was $132, but in Florida, it is $100, plus a $25 registered agent fee. There are other costs to consider when forming an LLC as well.
Annual Fees Associated with an LLC
One of the fees associated with an LLC is the LLC Annual Fee. The annual fee is also known as a compliance fee. This also varies based on the state, but in the state of Florida, it is $138.75. In some states, it is paid every 2 years, but in Florida, it is paid every year.
Registered Agent Fee
Every LLC is required to have a registered agent. You may choose an owner (referred to as members), a manager or employee, as well as a third party to be your registered agent. This service costs when done by a . third party collector, and would be anywhere from $100 to $300 annually.
What are the Reporting Fees of a Florida LLC?
The following are the reporting fees that Florida LLCs are required to pay.
Filing Articles of Organization
The articles of organization are filed in order to legally establish an LLC. In some states, they are referred to as a "certificate of formation" or "certificate of organization". The articles are filed with the Secretary of State in Florida.
Choose a Unique LLC Name
Every LLC must have a completely unique name in the state it is formed in. This means that it may not be named the same as any other LLC in Florida. It must also include “Limited Liability Company” “LLC” or another form of this in the name.
Reserve an LLC Name
If you are not ready to file but wish to reserve a name, you can do so for $75 which will reserve the name for 120 days.
Fictitious Business Name Applications
Also known as a DBA (doing business as), you can file for this if you wish to do business under a different name other than your official name. In order to do this, there should be an application filed including a $50 fee.
LLC Fees Vary By State
All LLC fees vary by state, but in the state of Florida, they are quite straightforward. It is good to note that starting an LLC is not incredibly complicated but does carry ongoing fees and compliance costs. You must understand these fees to ensure that you pay them and stay in compliance, in order to avoid penalties or dissolution.