How to start a business in Florida

Starting a business in Florida can be an exciting and rewarding endeavor. With its diverse population, thriving tourism industry and growing economy, the Sunshine State offers a prime location for entrepreneurs to launch their ventures. In this article, we’ll guide you through the essential steps to establish a successful business in Florida.

There are nine steps to starting a business in Florida:

1. Start with a business plan.
2. Select a business entity.
3. Choose a business name.
4. Choose a registered agent.
5. Register your business entity.
6. Apply for an employer identification number (EIN).
7. Apply for required licenses and permits in Florida.
8. Register your business with the Florida Department of Revenue.
9. Open business financial accounts.

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9 steps to start a business in Florida

1. Start with a business plan

When you’re looking to start a business in Florida, beginning with a solid business plan is crucial. A well-crafted plan outlines your company’s goals, strategies and financial projections and is your roadmap to success as an entrepreneur. The U.S. Small Business Administration (SBA) offers example business plans to help you write your own. 

Funding your business is another critical aspect to address in your plan. Look into various options, including bank loans, investments and personal savings. Even consider a business credit card. A well-prepared business plan can increase your chances of securing funding from investors or lenders.

Conducting market research is key to understanding your target audience and competition in Florida. Identify your customer base, analyze their needs and pinpoint how your products or services cater to them. This information will help you create an effective marketing strategy to attract and retain customers.

Lastly, remember to research your startup’s needed business software and tools. For instance, picking the best point-of-sale (POS) system and payroll software for your type of business can save you headaches and also help you save money on fees. Investing in the proper infrastructure will set you up for success as a Florida business owner.

2. Select a business entity 

When starting a business in Florida, one of the first things you’ll need to do is choose a business entity. The type of entity you select will impact various aspects of your business, including its taxation, liabilities and funding options. In Florida, you can form a sole proprietorship, partnership (general or limited), limited liability company (LLC) or corporation.

	TAXES	OWNERSHIP	LIABILITY
Sole proprietorship	Personal taxes	One person	Unlimited personal liability
General partnership	Self-employment taxes	Two or more people	Unlimited personal liability
Limited partnership	Personal taxes	Two or more people	Type of partnership determines personal liability
LLC	Self-employment tax	One or more people	Limited personal liability
Corporation	Corporate tax for C corp, personal tax for S corp	One or more people	Limited personal liability

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• A sole proprietorship is a simple business entity suitable for individual business owners. It requires no formal registration with the Florida Department of State. However, if you want to use a fictitious name, you will need to register it. Keep in mind that you’ll personally be responsible for all business debts and liabilities.
• A partnership has two or more individuals who own the business. You can choose between a general partnership and a limited partnership. Partnerships also require registration with the Department of State and may require a fictitious name registration.
• A limited liability company (LLC) is a popular choice due to its flexibility in management and tax advantages. Owners of an LLC, called members, enjoy limited liability protection. To form one, you need to file articles of organization with the Florida Department of State and obtain an EIN from the IRS.
• A corporation is a more formal entity that provides limited liability to its shareholders. To form one, you must file articles of incorporation with the Department of State and obtain an EIN. Corporations have stricter regulations, including annual reporting requirements. You can choose between an S corporation, which has tax advantages for small businesses, or a C corporation, which allows expanded funding opportunities and foreign ownership.

3. Choose a business name

One of the first steps in starting a business is selecting a business name. Florida law requires you to choose a unique business name that follows the state guidelines for your entity type. Ensure your chosen name also doesn’t infringe on existing trademarks or registered businesses. You can search the Florida Department of State Division of Corporations database to ensure a name’s availability within the state.

If you do not plan on filing your business formation paperwork now, you may reserve your chosen business name to ensure it is available once you file your formation paperwork and, so, officially register your business name. You can reserve a business name for 120 days by writing the Florida Secretary of State a letter with the desired name, your name and your address and including a filing fee of $25 for an LLC, $35 for a corporation and $52.50 for a limited partnership name reservation. 

4. Choose a registered agent

A registered agent is appointed to receive important legal and tax documents on your business’s behalf. You’ll need to decide on a registered agent designation for all business types other than sole proprietorship. A registered agent must be a person or company with a physical address in Florida. Check out the best registered agent services in Florida to choose the right agent for your business. 

5. Register your business entity

While sole proprietorships do not have to file paperwork to form their entities, other business types must. To formally register your business entity in Florida, you’ll need to file the appropriate paperwork with the Florida Department of State Division of Corporations for your business’s entity type. 

For example, if you are starting an LLC in Florida, you’ll need to file articles of organization and if you are starting a corporation, you’ll need to file articles of incorporation. Similarly, if you are starting a limited partnership, you’ll need to file a certificate of limited partnership and you’ll need to file a partnership registration statement to form a general partnership. Depending on the entity type, you’ll also have to include a filing fee ranging from $50 to $1061. 

6. Apply for an EIN

An EIN is like a Social Security number for your business. You’ll need an EIN to file taxes, open a business bank account, apply for business licenses and hire employees. You can apply for an EIN through the IRS website for free between 7 a.m. and 10 p.m. EST Monday through Friday.

7. Apply for required licenses and permits in Florida

Depending on the type of business you operate, you may need various business licenses and permits. The Florida Department of Business and Professional Regulation is responsible for issuing specific professional and occupational licenses. 

You may also need licenses at the local or federal level. To learn more about such business licensing requirements and how to obtain them, read our guide on business licenses.

8. Register your business with the Florida Department of Revenue

Your business entity may have to pay certain state taxes, such as a fuel tax, sales and use tax and corporate income tax. To find out the types of state taxes your entity is required to pay, you must register it with the Florida Department of Revenue. To do so, fill out a Florida tax application. When you do, it will ask you a series of questions to determine the types of taxes your entity must pay.

9. Open business financial accounts

Opening a business bank account and credit card helps separate your personal and business finances. This makes keeping your accounting up to date and managing business expenses and income much easier. This separation also provides increased liability protection for your personal assets should your corporation, LLC or limited partnership ever be sued or incur debt.

We have produced lists of the best business credit cards and best business checking accounts to help you choose the right solutions for your small business’s credit and banking needs. 

Find the best company formation services for Florida: Best LLC services of 2024

Featured registered agent service offers

ZenBusiness

Learn More

Via ZenBusiness’ website

Cost

$199 annually

Same-day document delivery

No

Phone support

Yes

LegalZoom

Learn More

Via LegalZoom’s website

Cost

$199

Same-day document delivery

No

Phone support

Yes

Northwest Registered Agent

Learn More

Via Northwest Registered Agent’s website

Cost

$125

Same-day document delivery

Yes

Phone support

Yes

Frequently asked questions (FAQs)