When you decide to start your company, you need to prepare a lot of things. You have to make sure you follow the process properly to prevent any issues. One of the most crucial factors is to decide on what type of company structure will suit your business.
Choosing The Right Business Structure
There are multiple business structures. What you need to do is to choose the one that will provide you with the most benefits. For most startups, the Limited Liability Company (LLC) structure is the first choice.
Many startup companies choose this structure because of the protection it offers. It is a hybrid business entity that combines features of corporations and partnerships. As the name implies, an LLC limits the personal liability of business owners. So, you will be protected even if there are possible claims against the business. All obligations and debts will only affect the assets of the company. Additionally, this type is an affordable way of structuring a small company.
With the advantages that an LLC has, you may find yourself considering forming one to start that dream business. If you choose to start one in Florida, you will have to keep in mind that the state implements regulations related to the formation of a company. Aside from filing LLC paperwork in Florida, business entities also have to complete the necessary steps.
A Step-By-Step Guide
As stated earlier, you will need to submit formal LLC paperwork in Florida. Aside from this, you have to make sure you carefully complete the multi-step process.
Name your LLC. Choosing the name of the company is an important step. Make sure it reflects the value of the business. At the same time, you also need to follow state guidelines. Take note of the following:
- It has to include the phrase limited liability company or any of its abbreviations, such as LLC or L.L.C.
- Do not include any word that can confuse the LLC for a government agency.
- Do not use restricted words, including bank, attorney, and university. If you want to use any of these, you will have to file additional paperwork. You will also need a licensed individual, such as a lawyer or doctor.
Aside from this, you also need to make sure no other business entity is using the name. To verify the availability, do a name search. You may also use a fictitious name. However, you will need to file a separate registration form.
- Appoint your company’s registered agent in Florida. The state requires all LLCs to have a registered agent. You can choose an individual or an entity. The main purpose of an agent is to receive legal documents and official correspondence with the government on behalf of your LLC. They will serve as the point of contact of your LLC with the state. If you choose an individual, he or she needs to be a full-time resident of Florida. If you want a company, it has to be authorized to do business in the state.
- Complete and file Articles of Organization. The most important LLC paperwork in Florida is the Articles of Organization form. Complete it and submit to the Division of Corporation. You can do it online, in person, or by mail. It comes with a $125 filing fee, plus a $30 fee for a certified copy. To complete the form, you will need to include the following information:
- The proposed name for the LLC
- The street and mail address of the principal office of your LLC
- The name, address, and signature of the registered agent
- Names and addresses of the managers
- The effective date of the company if it is different from the filing date
- Signature of an authorized representative or a member
- Create an Operating Agreement. Although the state of Florida does not require an operating agreement, having one will be of great help. It will serve as the document to establish the rights and responsibilities of all members and managers. It will also preserve the LLC by showing it is a separate entity. It ensures that all owners are on the same page. Thus, it will be easier to avoid or resolve conflict in the future.
- Comply with other requirements. Once you successfully form your LLC in Florida, you have to comply with other regulatory and tax requirements. You will need to obtain an IRS Employer Identification Number (EIN), get other business licenses, and register with the Department of Revenue (DOR) for state taxes. You can also use the EIN to open a company bank account, hire employees, and comply with federal and state taxes. Additionally, you will also need to maintain an active status with the state. To do this, you have to file an Annual Report between January 1 and May 1. You can do this online.
- Consider opening a bank account and protection. If you wish to further protect your business, you may also want to consider getting an insurance policy. Weigh your options well. Choose a policy that offers wide coverage. Having a bank account can also help you avoid the risk of mixing personal and business assets. You can open an account under the name of the company to help monitor the finances properly. You may also get a credit card to keep the business expenses centralized.
Get Help With The LLC Paperwork In Florida
Starting a business takes a lot of courage. It also comes with a lot of responsibilities. To ensure compliance with the state, you will need patience. However, the whole ordeal can be a bit overwhelming for beginners. If you need help on how to form an LLC in Florida, you can check the services of a reliable company like DoMyLLC. Our team of experts can offer assistance for emerging entrepreneurs. We also offer live support and personalized solutions. We are always prepared to handle your company paperwork. Contact us now and find out how we can help make the registration process hassle-free.
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