Starting a business requires you to make various preparations including paying the correct LLC fees. Aside from the responsibilities that you will have to face in running your business and thinking of ways to help it grow, you will also need to make sure it remains compliant with the state.
Understanding An LLC
One of the first things you need to consider as an entrepreneur is the type of business structure to adopt. For most startups, the type of entity that suits their needs is the limited liability company (LLC). It is a hybrid organizational structure that offers combined features of a corporation and partnership. Thus, you will have a flexible business entity that does not require you to spend too much money. All you need to take care of are the LLC fees.
- Forming an LLC gives the owners protection. All owners of the company will not have any liability for the actions that the company does. Thus, your personal assets will have protection for as long as the business exists. To avoid encountering any issues, you have to make sure that your finances and those of the company are separate.
- An LLC is a pass-through entity. What this means is that all profits of the business go to the members of the LLC. The state will not tax you on a company level. Instead, the LLC members will report it in their federal income tax returns. With this, you will have easier filing.
- You can choose a management style. There are two ways to manage an LLC in Florida. First, you can choose the member-managed structure. If you choose this, management decisions will come from LLC members. Second, your company can opt for a manager-managed style. Companies that choose this end up hiring an outsider or appointing a single member to deal with the daily operations and management decisions.
Forming An LLC
If you are 100% sure about starting an LLC in Florida, you have to make sure you understand the process the state implements. You will have to complete and submit formal paperwork with the Department of State. To make sure you do not miss a step, you can check their official website for a list of requirements. You may also hire a reliable company, such as DoMyLLC, to handle the filing of the documents.
What To Know About LLC Fees
Aside from the process, you also need to prepare for the LLC fees that the state requires you to pay. Generally, forming an LLC does not mean you will have to shell out a lot of money. That is one reason why it is attractive to emerging entrepreneurs.
- The first fee you will encounter is for the filing of the Articles of Organization. For this, your company will have to prepare $125. If you want to have a certified copy of the articles, you will have to pay another $30.
- Forming an LLC in Florida requires the appointment of a registered agent. You can choose an individual or a company. If you choose a person, they will need to have a physical street address in the state. If you want a company to serve as your LLC’s agent, it needs to be authorized to do business in Florida. Generally, the registered agent will serve as the point of contact of the state with your company. They will receive all legal documents on behalf of your LLC. Since it is necessary, your company will have to prepare for their payment. If you want to have a reliable team of experts to serve as your company’s registered agent, you can check out the services of DoMyLLC. Our team can provide a price quote upon request.
- Once you finish the registration process, you may want to consider opening a bank account under the name of your LLC. Doing this may require proof that it is active and has already paid the initial filing fees. It can also show that your company is in good standing. In Florida, this document is called the Certificate of Status. The certificate comes with a $5 filing fee.
- Your obligations do not end after legalizing the formation of your LLC. It has to continue paying for ongoing costs involved in running the business in Florida. If you need to acquire local permits and business licenses, you may need to prepare for additional costs. The price may vary depending on the type of license you will need. To be sure, check with the corresponding agency.
- Since LLCs are registered with the state, they will have to file annual reports. Your LLC can do this online. The deadline is the 1st of May of every year. Florida requires you to pay $138.75 along with the filing of the report. If you fail to file on time, the state will charge a $400 penalty fee. Failure to settle your company’s obligations by the third week of September will result in dissolution.
The registration and documentation processes that an LLC in Florida needs to take care of can be a bit overwhelming. However, there is no law that states that you have to do these by yourself. You can choose to hire a third party to handle the paperwork and filing for you.
Yes, doing this may require you to deal with additional expenses. But, it will be a small price to pay. Your company will highly benefit from professional services. Not only will it reduce stress, but it will also allow you to focus on running your business.
If you are looking for a trustworthy service provider, then look no further. DoMyLLC can take care of your company’s needs. Our team of experts can provide you with live support and personalized solutions. With our experience and expertise, we can help decrease the risks of making errors. Thus, making sure that every dollar you spend is worth it. Aside from the registration process, we can also help with filing of reports. Contact us to learn more.
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