In the United States, choosing to form an LLC is a strategic decision for many entrepreneurs seeking asset protection and flexibility. Unlike corporations or partnerships, LLCs shield their owners from the company's debts while offering pass-through taxation advantages. However, this comes with costs, including those for filing and maintaining the entity. The benefits of an LLC extend to its operational flexibility, outlined in an operating agreement that tailors to the business’s specific needs. Requirements also involve submitting an annual report to stay compliant. For solo entrepreneurs, a single-member LLC in Florida unfortunately does not provide the same protections and benefits. Additionally, forming an anonymous LLC can offer privacy for business owners, making LLCs a comprehensive choice for those looking to balance liability protection with fiscal benefits.
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.
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.
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.
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.
The following are the reporting fees that Florida LLCs are required to pay.
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.
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.
If you are not ready to file but wish to reserve a name, you can do so for $25 which will reserve the name for 120 days.
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.
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.