1. Why Form Your LLC in Florida?

Florida is one of the most popular states for LLC formation, particularly for entrepreneurs in the Southeast. Key advantages include:

  • No state income tax — Florida has no personal income tax, so LLC members pay no Florida tax on their profits
  • Large economy — Florida is the fourth-largest US economy, with strong growth in tech, real estate, and tourism
  • Low formation cost — $125 to file Articles of Organization online at Sunbiz.org
  • Simple online system — Sunbiz.org is one of the best state filing portals in the country
  • No state corporate income tax on LLCs — Florida's 5.5% corporate income tax applies only to C-corporations
  • Straightforward annual compliance — One annual report due May 1 each year
Watch the Annual Report Deadline

Florida's annual report is due by May 1 each year. If you miss the deadline, a $400 late penalty is automatically added — turning a $138.75 filing into a $538.75 filing. Set a reminder well in advance.

2. Florida LLC Requirements

  • Choose a unique name containing "Limited Liability Company," "L.L.C.," or "LLC"
  • Name must be distinguishable from other Florida entities (check Sunbiz.org)
  • Appoint a registered agent with a physical Florida street address (not a PO Box)
  • File Articles of Organization with the Florida Division of Corporations ($125)
  • File an annual report by May 1 each year ($138.75)
  • Maintain a registered agent at a Florida physical address at all times
  • No operating agreement required by law (but strongly recommended)

3. Florida LLC Costs and Fees (2026)

Cost Item Amount Notes
Articles of Organization$100State LLC formation filing
Registered Agent Designation$25Included in initial Articles filing
Total Formation Cost$125One-time, filed at Sunbiz.org
Annual Report (recurring)$138.75/yearDue May 1 each year
Annual Report Late Penalty$400Automatic if filed after May 1
Registered Agent$50–$200/yearRequired FL physical address
EINFreeApply at IRS.gov
Operating Agreement$0–$500DIY or attorney-drafted

4. How to Start a Florida LLC (Step by Step)

  1. 1 Choose your LLC name (must include "Limited Liability Company," "L.L.C.," or "LLC")
  2. 2 Appoint a registered agent with a Florida physical or street address
  3. 3 File Articles of Organization with the Florida Division of Corporations online at Sunbiz.org ($125)
  4. 4 Obtain an EIN from the IRS (free at IRS.gov)
  5. 5 Draft an Operating Agreement (not required by Florida law but strongly recommended)
  6. 6 Obtain any required local business licenses or permits
  7. 7 File annual report by May 1 each year ($138.75)
  8. 8 Open a business bank account and keep finances separate

5. Florida LLC Annual Report

Florida LLCs must file an annual report with the Division of Corporations by May 1 each year. The annual report:

  • Costs $138.75 (online filing at Sunbiz.org)
  • Confirms or updates your registered agent, principal address, and member/manager information
  • Is publicly searchable — member and manager names and addresses become public record
  • Results in a $400 late penalty if filed after May 1
  • Can result in administrative dissolution if not filed within a certain period
File Early to Avoid the $400 Penalty

The Florida annual report portal opens January 1 each year. You can file as early as January 1 to avoid any risk of missing the May 1 deadline. The filing fee is the same regardless of when you file between January 1 and May 1.

6. Florida LLC Taxes

Here is the complete Florida LLC tax picture for 2026:

  • Florida personal income tax — None. Florida has no state personal income tax.
  • Federal income tax — Pass-through to members' personal returns (Schedule C for single-member)
  • Self-employment tax — 15.3% on net earnings up to the Social Security wage base
  • Florida corporate income tax — 5.5% — does NOT apply to LLCs (only C-corporations)
  • Florida sales tax — 6% state rate plus local surtax (up to 2.5%) on taxable sales of goods and services in Florida
  • Documentary Stamp Tax — Applies to real estate transactions and certain documents in Florida

7. Best For / Not Best For

Best For

  • Entrepreneurs physically living and operating in Florida
  • Business owners who want no state income tax in a major US market
  • Companies with Florida customers, employees, or operations
  • Real estate investors and businesses in Florida's growing economy
  • Founders who want straightforward, simple LLC compliance

Not Best For

  • Privacy-focused founders (Florida has strong public records laws)
  • Out-of-state owners: $125 formation + home-state foreign qualification adds up
  • Owners sensitive to the $400 late annual report penalty
  • Businesses seeking the cheapest ongoing compliance (Wyoming or New Mexico are cheaper)