How to Start a Business in Florida
Everything you need to form your Florida LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Florida's low startup costs and tax-friendly environment make it an attractive place to launch a business. Forming an LLC costs just $125, and the state imposes no personal income tax on pass-through business profits. This allows business owners to reinvest earnings more efficiently than in states with income taxes.
This guide covers every step of launching your Florida business: choosing the right legal structure, forming your LLC, registering for taxes and licenses, and understanding your ongoing compliance obligations.
Choosing Your Florida Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Florida small businesses.
| Entity Type | Liability Protection | Taxation | Florida Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $125 | $138.75 Annual Report | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $70 | $150 Profit Annual Report | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Florida Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Florida Department of State, Division of Corporations (Sunbiz) database. Reserve for $25 (120 days).
- 3
Appoint a registered agent
Must have a physical Florida street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Articles of Organization ($125) or Articles of Incorporation for a Florida Profit Corporation ($70) with the Florida Department of State, Division of Corporations (Sunbiz).
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Florida Department of Revenue. State sales tax rate: 6%.
- 7
Get required licenses and permits
Florida issues no general statewide business license.
- 8
Register for Florida taxes
Personal income tax: none.
How Much Does It Cost to Start a Business in Florida?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Florida Department of State, Division of Corporations (Sunbiz)) Required | $125 | No guaranteed turnaround is published. The Division states online filings are processed in the order received, and... |
| Corporation filing fee Required | $70 | If forming a corporation instead |
| Annual Report Required | $138.75 | Filed each year between January 1 and May 1. A $400 late fee applies to reports received after May 1 (total $538.75). |
| Name reservation | $25 | 120 days |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | Florida issues no general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $125 to $563.75 |
Start a Specific Business in Florida
Florida Business Guides
- How to Start an LLC in Florida
- How to Start a Corporation in Florida
- Sole Proprietorship in Florida: How to Start One
- Florida Business License: What You Need and How to Get It
- Florida Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in Florida
- Florida Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in Florida
- Florida Registered Agent: Requirements and How to Choose One
- Best LLC Services in Florida
- Florida Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in Florida
Why Start a Business in Florida?
- Florida's population was an estimated 23,462,518 as of July 1, 2025, up 8.9% from the 2020 census count of 21,538,207.
- Florida has the fourth largest economy of any US state, at roughly $1.8 trillion in current-dollar GDP for 2025.
- Florida levies no personal income tax, so LLC and S-corp profits that pass through to owners face no state income tax.
- The corporate income and franchise tax rate is 5.5% of Florida net income for tax years beginning on or after January 1, 2022.
- Forming an LLC online costs $125 total: a $100 filing fee plus the required $25 registered agent designation.
- The state sales and use tax rate is 6%, with counties adding a discretionary sales surtax on top, and registering as a sales tax dealer is free.
Florida Business Resources
Frequently Asked Questions
- How long does it take to form an LLC?
- Electronically filed documents typically post within 3 business days of processing.
- What does it cost in year one?
- Your formation fee is $125. Your first annual report costs $138.75 and is due between January 1 and May 1 of the following year.
- Can a non-resident form an LLC?
- Yes. You can file online through Sunbiz eFile, and the $125 formation fee includes a required registered agent designation.
- What is the cheapest way to start a business in Florida?
- A profit corporation costs just $70 to file, the lowest state fee. An LLC costs $125.
- Is an operating agreement required?
- No. You must file Articles of Organization to form your LLC, but an operating agreement is not required.