Is it expensive to form an LLC in Florida?
When it comes to setting up an LLC in Florida there can be advantages and disadvantages. This isn’t just in Florida however, in every state there are always pros and cons, some weigh more than others. Before you go ahead and choose which state you want to form an LLC in, here are a few things to consider when it comes to forming an LLC in Florida.
The state fee
State fees always vary depending on where you apply. They can be as a little as $40 to as high as $500. In Florida specifically, it costs $125 as a state fee. You do not need to pay anything else, only if you choose to get help from a professional service when setting up your LLC.
There isn’t an exact amount given for permits and licenses when you have a Florida LLC, since it is all down to what federal, state and local government charges. In order to be ready for any unexpected costs, it is advised to have a separate bank account with extra money for these kinds of circumstances. You can also check on the official federal and state websites for costs and contact the local government too.
When it comes to filing your operating agreement, it is an additional fee and can range between $40 – $99. Whereas for the EIN, you also have to pay a fee that can vary between $60 – $70.
What about maintenance costs?
There are always maintenance costs when it comes to having an LLC. As a business owner, you have the responsibility of filling out an annual report which you have to provide to the Departmentof State. It is an online procedure and it costs £138.75 annually. However, if you miss the deadline that is given to you, it’ll cost you $400 to pay as a fine. Not only that, but you would be at risk of losing your LLC too.
If you do not act as a self registered agent and you actually hire a Florida registered agent, you would also have to pay them for their service annually. A registered agent is someone who is responsible for handling the lawsuits, legal paperwork and taxes for your LLC company. It can be useful for you to hire a registered agent for many reasons, but you need to make sure that you hire someone who keeps their costs fixed annually.
Getting an LLC in Florida is not that expensive in comparison to other states. Another advantage to consider when applying in Florida is that as an LLC company, you are exempt from paying state income tax and the sales tax in the state is 6%. The state fee is not as expensive as other states and the extra costs are very low. The only downfall is that if you do miss any deadlines, you have to pay a hefty fine. Regardless of where you apply for an LLC, you should always have back up money for any unexpected costs such as permits. When it comes to hiring a registered agent, the expenses are all down to who you choose to represent your company.
Even though it may seem like a great idea to be a self registered agent because you’d think you’d be saving money, it actually is not that much of a great idea because you will lose out on time. Being a self registered agent means that you have to be present at your business at all times between the hours of 9am – 5pm. This means that you cannot just quickly disappear, because there is a chance that you might miss an important delivery for paperwork. That is just one prime example of the downfall of being a self registered agent. Generally speaking, you need to calculate what you can afford before you make any rash decisions.