Florida has become increasingly popular for business formation, attracting entrepreneurs with its favorable tax climate and business-friendly regulations. The state's economy is diverse, with strong sectors in tourism, agriculture, aerospace, and international trade.
With no state income tax and robust asset protection laws, Florida offers compelling advantages for business owners. However, like any state, it has both benefits and drawbacks that should be carefully considered.
State Filing Fee
$125
Registered Agent (Optional)
$99-199/year
Processed within 2-3 business days (down from $75 in 2024)
Florida is one of only nine states with no personal income tax. This can result in significant savings for business owners, especially those with high income levels. The state also has no corporate income tax for LLCs.
Florida offers some of the strongest asset protection laws in the country, particularly for homestead exemptions and retirement accounts. This makes it attractive for business owners concerned about liability protection.
Florida consistently ranks high in business climate studies due to its pro-business policies and regulatory environment.
Florida's location makes it ideal for businesses involved in Latin American trade, tourism, or those serving the growing Southeast market.
Florida requires annual reports with a $150 fee, which is higher than most states. Late filing results in a $400 penalty, one of the highest in the nation.
Annual Costs: $150/year for annual reports, due by May 1st. Missing the deadline results in a $400 penalty plus the original $150 fee.
Florida's hurricane season and severe weather can impact business operations. While not unique to LLCs, it's a practical consideration for any Florida business.
Florida's business-friendly environment attracts many companies, creating increased competition in many sectors.
While Florida has no income tax, it does have a 6% state sales tax (plus local taxes), which can affect retail businesses.
Your LLC name must include "LLC" or "Limited Liability Company" and be distinguishable from existing business names in Florida.
Florida requires a registered agent with a Florida address. This can be yourself, another person, or a professional service.
File online through the Florida Division of Corporations website (sunbiz.org) or by mail with the $125 filing fee.
Standard Processing
5-7 business days
Expedited Processing (+$50)
2-3 business days
Florida LLCs must file annual reports by May 1st each year with a $150 fee. The report updates your LLC's information with the state.
You must maintain a registered agent with a Florida address at all times. If you move out of state, you'll need to hire a professional service.
Unlike some states, Florida doesn't impose a franchise tax on LLCs, keeping ongoing costs relatively low despite the annual report fee.
State | Filing Fee | Annual Cost | Income Tax |
|---|---|---|---|
Florida | $125 | $150 | None |
| California | $70 | $800 | Yes |
| Texas | $300 | $0* | None |
| Delaware | $90 | $300 | Yes |
Florida LLCs are particularly attractive for:
No state income tax saves significant money
Strong asset protection and no income tax
Gateway to Latin America and Caribbean
Major tourism destination with infrastructure
$150 annual fee is higher than many states
Hurricane season can impact business
Sales tax applies to most retail sales
Many businesses attracted to Florida
Required for tax purposes and business banking
Separate business and personal finances
Not required but highly recommended
Required if selling taxable goods or services
Varies by business type and location
Due May 1st every year - don't miss the $400 penalty
Take advantage of Florida's tax benefits and business-friendly environment. We'll handle the paperwork while you focus on growing your business.
Compare Florida vs Texas - both offer no state income tax benefits.
Don't miss Florida's May 1st deadline - avoid the $400 penalty.