How to Start a Business in Florida: Complete 2025 Guide

Why Choose Florida for Your Business?

Florida offers numerous advantages for entrepreneurs and established businesses:

• No State Income Tax: Keep more of your business profits
• Business-Friendly Climate: Minimal regulations and red tape
• Growing Population: Expanding customer base and workforce
• Strategic Location: Gateway to Latin America and the Caribbean
• Tourism Economy: Year-round business opportunities
• Low Corporate Taxes: 5.5% corporate income tax rate

Step 1: Choose Your Business Structure

Select the right legal structure for your Florida business:

Business Entity Options:

• LLC: Most popular choice, $125 filing fee
• Corporation: Good for growth, $70 filing fee
• Sole Proprietorship: Simplest but no liability protection
• Partnership: For multiple owners
• Nonprofit Corporation: For charitable organizations

Step 2: Register Your Business Name

Ensure your business name meets Florida requirements:

Name Requirements:

• Must be distinguishable from existing Florida entities
• Include appropriate designators (LLC, Inc., Corp.)
• Cannot contain restricted words
• Cannot suggest government association

Name Registration Process:

• Search available names at sunbiz.org
• Reserve name for 120 days ($50 fee)
• File fictitious name registration if using DBA

Step 3: File Formation Documents

Submit required paperwork to Florida Division of Corporations:

For LLCs - Articles of Organization:

• LLC name and principal office address
• Registered agent information
• Effective date of organization
• Authorized person signature
• Filing fee: $125

For Corporations - Articles of Incorporation:

• Corporate name and principal office
• Number of authorized shares
• Registered agent details
• Incorporator information
• Filing fee: $70

Step 4: Appoint a Registered Agent

Florida requires every business entity to have a registered agent:

Registered Agent Requirements:

• Must have Florida street address
• Available during normal business hours
• Can be owner, employee, or professional service
• Accepts legal documents and state notices

Step 5: Obtain Federal EIN

Get your Employer Identification Number from the IRS:

• Required for tax purposes and banking
• Free when obtained directly from IRS.gov
• Needed even for single-member LLCs
• Apply online for immediate processing

Step 6: Get Required Licenses and Permits

Florida licensing requirements depend on your business type:

State Licenses:

• Sales Tax Certificate: Required for retail businesses
• Professional Licenses: For regulated occupations
• Contractor Licenses: For construction work
• Health Department Permits: For food service
• Alcohol Licenses: For beverage sales

Local Requirements:

• City/county business tax receipt
• Occupational licenses
• Zoning permits
• Fire department inspections
• Building permits if applicable

Step 7: Understand Florida Tax Requirements

Florida has favorable tax policies for businesses:

State Taxes:

• No Personal Income Tax: Major advantage for business owners
• Corporate Income Tax: 5.5% on federal taxable income
• Sales Tax: 6% state rate plus local taxes
• Reemployment Tax: Unemployment compensation
• Property Tax: Varies by county

Step 8: Open Business Bank Account

Establish business banking relationships:

Required Documents:

• Articles of Organization/Incorporation
• EIN confirmation letter
• Operating Agreement or Bylaws
• Valid government-issued ID
• Initial deposit amount

Step 9: Obtain Business Insurance

Protect your Florida business with appropriate coverage:

Essential Insurance Types:

• General Liability: Protection against third-party claims
• Workers' Compensation: Required with employees
• Property Insurance: For business assets and equipment
• Professional Liability: For service-based businesses
• Hurricane Coverage: Important in Florida

Step 10: Comply with Employment Laws

If hiring employees, understand Florida requirements:

Key Employment Obligations:

• Register with Department of Economic Opportunity
• Obtain workers' compensation coverage
• Follow federal minimum wage laws
• Comply with hiring and discrimination laws
• Display required workplace posters
• Set up payroll tax withholding

Ongoing Compliance Requirements

Maintain good standing with Florida:

Annual Requirements:

• File Annual Report by May 1st (LLCs) or March 1st (Corporations)
• Pay annual report fee ($139 for LLCs, $150 for Corporations)
• Maintain registered agent and office
• Renew business licenses as required
• File corporate income tax returns