Are you thinking about getting an LLC for your company but you’re still unsure? Are you confused about which state to apply in? Do you want to apply in Florida, but you are not sure yet? There are many questions that pop up in our heads and we sometimes don’t have the answers for them. Here is a list of benefits provided for you, in case you want to start a Florida LLC.
The taxes in Florida are pretty decent, with the sales tax being just 6% and the income tax being 5.5%. However, when you own an LLC company, you are exempt from paying income tax. This is a win-win situation for you, since you do not have to pay any income tax. Instead, you only report your profit and losses through the company. That is why Florida is known to be ranked fifth out of all the states as good tax purposes for LLC companies.
The state fee
When it comes to applying for an LLC in general, you always have to pay a state fee. This can vary between $40 – $500, but for applying in Florida, it costs $125. It is cheaper than other states which is another benefit to consider. There are no additional costs either, you just need to pay additional costs if you choose to hire a professional service to set up your LLC.
The annual costs
As an LLC business owner it is required for you to file an annual report and provide it to the state. This can be handled with help from a registered agent, or you can manage this by yourself. The annual fee to submit your annual report is $138.75. However, you need to keep in mind that if you do miss the deadline for submissions, you will be fined $400.
The hiring process
When hiring a registered agent they have to be a resident and able to legally represent in the state. What is a benefit for you is that you do not need to have your business address as a public record, because it’ll be the agent’s business address on public record. This is another way of protecting your company.
A registered agent is a person who is responsible for handling any potential lawsuits against your company, sorting out all legal paperwork and keeping up with the taxes. You can be a self registered agent, but that would mean that your business address will go on public record and that you would have to be a resident in the state of Florida.
Florida is one of the states that allows you to have as many members as you want for your LLC business. You have to of course stay up to date with the paperwork when it comes to adding new members, terminating members and stating the responsibilities for each member. This is all done under the operating agreement which is a vital step when setting up your LLC.
Getting an LLC in Florida can be seen as highly beneficial for both small business owners and large corporations. However, you have to evaluate as a business owner on what you can afford and what you prefer to do. This could be for example that you might be living in a different state and you want to represent yourself as an agent, which would mean that you cannot apply for Florida. This can also be how much you can afford paying annually or the fees stated above. Each state has their own regultations such as paying extra costs for permits or licenses, which is something that you also need to look into. There are plenty advantages of setting up an LLC in Florida, such as the tax system and the flexibility that they offer as a whole when it comes to the amount of members for your LLC.