A clear checklist for registering, licensing and handling taxes for a new small business in Florida.
Quick answer: To start a small business in Florida, choose a structure, register on Sunbiz with the Florida Division of Corporations, get an EIN, register with the Florida Department of Revenue for sales tax if needed, and get any county and city licenses. A Florida LLC costs $125 to form, then $138.75 a year for the annual report, due between January 1 and May 1. A late report adds a $400 fee.
Florida is a favourite for new businesses because it has no personal state income tax and a simple online filing system called Sunbiz. Many owners can register an LLC in a single afternoon.
The main thing to watch is the annual report. Florida charges a steep, non-waivable late fee if you miss the May 1 deadline. This guide covers each step and the costs to plan for. Fees below were correct when we checked, but confirm them on Sunbiz before you file.
In this article
- What does it cost to start a business in Florida?
- What are the steps to start a small business in Florida?
- What taxes do Florida small businesses pay?
- How does the Florida annual report work?
- What are the benefits and limits of starting in Florida?
- Frequently asked questions
- Final thoughts
What does it cost to start a business in Florida?
| Item | Cost | Notes |
|---|---|---|
| LLC Articles of Organization | $125 | $100 filing fee plus $25 registered agent designation |
| Annual report | $138.75 per year | Due January 1 to May 1 |
| Late annual report fee | $400 | Added on top of the report fee, not waivable |
| Fictitious name registration | $50 | For trading under another name |
| EIN | Free | From the IRS |
County and city business tax receipts, professional licenses and insurance are extra, and they vary by location and trade.
What are the steps to start a small business in Florida?
1. Choose your business structure
Sole proprietorships have the least paperwork. An LLC adds liability protection for a $125 filing fee and the yearly report. Our guide to LLC vs sole proprietorship explains the trade-offs.
2. Search your name on Sunbiz
Use the Division of Corporations search on Sunbiz.org to check that your name is available. Also check the USPTO trademark database for conflicts.
3. File your Articles of Organization
LLCs file online through Sunbiz. You must name a registered agent with a Florida street address. The $125 fee covers the filing and the agent designation.
Maria opens a pet grooming studio in Tampa. She files her LLC on Sunbiz for $125, names herself as registered agent, and receives her approval by email. She then registers the trade name “Tampa Paws Grooming” as a fictitious name for $50, because it differs from her LLC’s legal name.
4. Register a fictitious name if needed
Florida requires a fictitious name registration if you trade under a name other than your own or your company’s legal name. It costs $50 through Sunbiz. Read our guide on what a DBA is.
5. Get your EIN
Apply for a free EIN on the IRS website. See how to get an EIN.
6. Register with the Department of Revenue
If you sell taxable goods or services, register with the Florida Department of Revenue before you start trading. The state sales tax rate is 6%, and many counties add a discretionary sales surtax. If you hire, you will also register for reemployment tax.
7. Get local licenses
Most Florida counties and many cities require a local business tax receipt. Some trades, such as contractors and cosmetologists, also need a state license from the Department of Business and Professional Regulation.
8. Open a bank account and get insured
Keep business funds separate and ask about the insurance your trade needs.
File your Florida annual report in January, as soon as the filing window opens. It costs the same as filing in April, and it removes any risk of the $400 late fee if you get busy later in the spring.
What taxes do Florida small businesses pay?
- No personal income tax: Sole proprietors and most LLC owners pay no state tax on business profit passed through to them.
- Sales and use tax: 6% state rate plus any county surtax on taxable sales.
- Corporate income tax: Applies to C corporations and some LLCs taxed as corporations, not to typical pass-through LLCs.
- Reemployment tax: Florida’s name for state unemployment tax, paid by employers.
- Federal taxes: Self-employment tax and quarterly estimated payments may apply.
Andre runs a small IT support LLC in Orlando taxed as a pass-through entity. He pays no Florida income tax on his profits and pays federal tax on his personal return. Most of his services are not subject to sales tax, so he confirms the rules for his exact services with the Department of Revenue.
How does the Florida annual report work?
Every Florida LLC and corporation must file an annual report on Sunbiz between January 1 and May 1, starting in the year after it forms. The report confirms your address, registered agent and managers or officers.
- Fee: $138.75 for an LLC.
- Late fee: $400 if you file after May 1, for a total of $538.75.
- If you never file: The state can administratively dissolve your LLC, which removes its good standing.
Reinstating a dissolved LLC costs more than filing on time, so treat this as a fixed yearly bill.
What are the benefits and limits of starting in Florida?
- No personal income tax: A real advantage for pass-through businesses.
- Easy online filing: Sunbiz makes registration and annual reports simple.
- High late fee: The $400 penalty is easy to trigger if you forget the deadline.
- Local licenses vary: Counties and cities set their own business tax receipts.
This guide is general information, not legal or tax advice. A Florida accountant can confirm the rules for your business.
Search Sunbiz for your business name, then look up your county’s local business tax receipt rules. Those two checks show you most of what you need before you file.
Frequently asked questions
How much does it cost to start an LLC in Florida?
The filing costs $125, which is $100 plus $25 for the registered agent designation. The annual report then costs $138.75 a year.
When is the Florida annual report due?
Between January 1 and May 1 each year, starting the year after you form.
What happens if I file my Florida annual report late?
A $400 late fee is added. If you never file, the state can dissolve your LLC.
Does Florida have state income tax?
Florida has no personal income tax, though C corporations pay corporate income tax.
Do I need a fictitious name in Florida?
Yes, if you trade under a name that is different from your legal or registered name. It costs $50.
Do I need a business license in Florida?
Most counties and many cities require a local business tax receipt, and some trades need a state license.
Final Thoughts
- A Florida LLC costs $125 to form and $138.75 a year to maintain.
- File your annual report between January 1 and May 1 to avoid the $400 late fee.
- Register with the Department of Revenue if you sell taxable goods or services.
- Check county and city rules for local business tax receipts.
Explore More on BTS Magazine
- How to Start a Small Business in Texas
- How to Start a Small Business in California
- How to Start a Small Business in Ohio
- What Is a DBA? Meaning and How to Register One
