How to Start a Business in Florida
Florida is home to more than 3.1 million small businesses, which employ over 3.4 million people and represent 99.8% of all businesses in the state.
In This Article
The Complete Guide
How to Start a Business in Florida — 12 Steps
This is a full walkthrough: entity selection, state registration, federal tax IDs, licenses, banking, insurance, and ongoing compliance. Every step includes the official Florida links, fees, and timelines.
Cost depends on your structure. A sole proprietorship may cost nothing to start. An LLC costs $125 to file online. A corporation costs $70. Step 3 walks through every option.
Florida: Key Business Facts
Updated: Feb 2026- LLC Filing Fee (Online)
- $125
- Sole Proprietorship / DBA
- $50
- Corporation Filing
- $70
- Processing Time
- 3-5 business days
- Expedited Option
- $100 / 1-2 business days
- State Income Tax
- None
- Sales Tax Rate
- 6%
- Gross Receipts Tax
- No
- Franchise / Annual Tax
- 5.5% corporate income/franchise…*
- Filed With
- Florida Division of Corporations
- State Business License
- Not required (check local)
- Last Verified
- February 24, 2026
* Franchise / Annual Tax: 5.5% corporate income/franchise tax (C-Corps only, on income over $50,000)
Local licenses: Florida does not require a general state business license. Most cities and counties require a local business tax receipt (sometimes called a local business license), so check with your county tax collector before opening.
What It Takes to Start a Business in Florida
Starting a Florida business involves 12 clear steps, from validating your idea to filing your annual report. The Florida Division of Corporations (SunBiz) handles all entity filings online, and most founders can complete formation in under a week.
Your minimum first-year cost is roughly $263.75, covering the $125 LLC formation fee and $138.75 annual report. Beyond formation, you will need an EIN, a business bank account, and any industry-specific licenses required by your city or county.
Validate Your Business Idea
Research whether your idea fits Florida's economy before investing a dollar. The state's top industries include:
- Tourism and hospitality (Florida welcomed over 140 million visitors in 2023)
- Healthcare and life sciences (one of the fastest-growing sectors statewide)
- Real estate, construction, and professional services
Schedule a free consultation with the Florida SBDC Network to access market research tools, competitive analysis, and one-on-one advising at no cost.
Pro Tip
Write a Business Plan
A written business plan is required if you plan to apply for bank financing or SBA-backed loans. Include financial projections for at least 12 months, a clear revenue model, and your target customer profile.
Use StartupOwl's business plan guide for a free template that covers every section lenders expect to see. The Florida SBDC also offers free plan-review sessions.
Pro Tip
Choose Your Business Structure
Most founders in Florida choose an LLC because it combines personal liability protection with pass-through taxation and avoids the state's 5.5% corporate income/franchise tax that applies to C-Corps. Filing an LLC costs $125 online at the Florida Division of Corporations (SunBiz).
The four main structures are sole proprietorship, LLC, S-Corp, and C-Corp. See the full comparison below before deciding, or read our Florida LLC formation guide for a deeper walkthrough.
Pro Tip
Business Structure Comparison — Florida
Full comparison guide| Structure | Florida Filing Cost | Personal Liability | How You're Taxed | Best For |
|---|---|---|---|---|
| Sole Proprietorship | $50 (DBA) | ❌ None | Personal income tax. No separate return. | Freelancers, consultants, side hustles testing an idea with no employees. |
| LLC Most Common | $125 online | ✅ Personal assets protected | Pass-through by default. Elect S-Corp when profitable. | Most small businesses. Best balance of liability protection, flexibility, and tax options. |
| S-Corporation | ~$125 + IRS election | ✅ Personal assets protected | Pass-through. Owners pay themselves a salary — can reduce self-employment tax. | Profitable businesses (typically $50K+ net) where payroll tax savings justify the complexity. |
| C-Corporation | $70 | ✅ Personal assets protected | Corporate tax rate (21% federal). Double taxation on dividends. | Startups planning to raise VC funding, issue stock options, or eventually go public. |
| General Partnership | Free / No State Filing | ❌ None — all partners personally liable | Pass-through. Each partner reports share on personal return. | Two or more owners who trust each other and don't need liability protection. |
Which should you choose? Most first-time founders in Florida pick an LLC — it protects your personal assets without the complexity of a corporation. If you're not sure, consult a CPA or business attorney before filing. Read the full Florida LLC guide →
Choose and Register Your Business Name
Search the SunBiz business name database to confirm your desired name is available. Your name must be distinguishable from every other entity on file and must include "LLC" or "Limited Liability Company" if you are forming an LLC.
Reserve your name for 120 days by filing a name reservation for $25. If you plan to operate under a different trade name, file a fictitious name (DBA) registration for $50.
Pro Tip
Check Florida Business Name Availability
Search the official Florida Division of Corporations database before you file.
Register Your Business with the State
File your Articles of Organization with the Florida Division of Corporations online for $125 (comprising a $100 filing fee and $25 registered agent designation fee). Standard processing takes 3-5 business days, or you can pay an extra $100 for 1-2 business day expedited processing.
You will receive a stamped Certificate of Organization once approved. Every Florida LLC and corporation must designate a registered agent with a physical Florida address. See our Florida registered agent guide for affordable options.
Pro Tip
Important
File Online with Florida Division of Corporations
Official Florida business registration portal. Standard processing: 3-5 business days.
Get Your Federal EIN
Apply for a free Employer Identification Number (EIN) directly from the IRS online portal. The process takes about 10 minutes, and you receive your EIN immediately.
An EIN is required to open a business bank account, hire employees, and file federal taxes. You need one even if you are a single-member LLC with no employees.
Pro Tip
Get Your Licenses and Permits
Florida does not require a general state-level business license, but requirements vary by industry and location. Most Florida businesses need some combination of the following:
- Sales Tax Permit (also called a Sales Tax Certificate) if selling taxable goods or services; register free at the Florida Department of Revenue
- Local Business Tax Receipt required by most Florida counties and cities; contact your county tax collector to apply
- Professional License required for contractors, healthcare providers, real estate agents, cosmetologists, and other regulated fields through the Florida DBPR
- Employer Registration required before hiring; register with the Florida Department of Revenue for reemployment tax
Pro Tip
Important
Open a Business Bank Account
Bring your EIN confirmation letter, Articles of Organization, government-issued ID, and your LLC operating agreement to open a business checking account. Separating personal and business finances is essential for maintaining your LLC's liability protection.
Compare fee structures and features in our best business bank accounts guide. Many online banks offer free business checking with no minimum balance.
Pro Tip
Set Up Accounting and Understand Your Taxes
Florida has no personal state income tax, which means sole proprietors, LLCs, and S-Corps pass their income directly to owners without a state income tax bite. However, C-Corps pay a 5.5% corporate income/franchise tax on net income exceeding $50,000.
Florida's state sales tax rate is 6%, with local surtaxes of up to 2.5% that vary by county. Register for sales tax collection at the Florida Department of Revenue before making your first taxable sale.
Set up cloud accounting software from day one to track revenue, expenses, and sales tax collected. See our best accounting software picks for options starting at $0/month.
Pro Tip
Get Business Insurance
Florida requires workers' compensation insurance for businesses with 4 or more employees (or 1 or more employees in the construction industry). Even if not required, general liability insurance is the baseline policy every Florida business should carry.
Compare coverage options and pricing in our best business insurance guide. Policies typically start at $30-50/month for small service-based businesses.
Pro Tip
Important
Build Your Online Presence
Claim your free Google Business Profile as your first step toward online visibility. This puts your business on Google Maps and local search results, which is especially valuable in Florida's tourism-driven market.
Build a simple website using one of the platforms in our best website builders guide. A single-page site with your services, location, and contact info is enough to start.
Pro Tip
Stay Compliant After Forming
After forming, keep your Florida business in good standing by meeting these ongoing requirements:
- Annual Report due by May 1 each year, fee: $138.75 for LLCs and LPs, filed at SunBiz
- Supplemental Late Fee of $400 applies if you file after May 1 but before the third Friday of September
- Sales Tax Filings monthly, quarterly, or semi-annually depending on your volume; file at the Florida Department of Revenue
- Registered Agent must be maintained with a physical Florida address at all times
- Fictitious Name Renewal every 5 years for $50 if operating under a DBA
- Local Business Tax Receipt renewal annually with your county tax collector
Missing the annual report deadline results in a $400 late fee and potential administrative dissolution after September. Track all deadlines with StartupOwl's compliance calendar.
Pro Tip
Important
Florida Business Background & Context
State-specific data to help you plan — taxes, economy, funding, and what to expect after you form.
Frequently Asked Questions
What to Do Next
Once you've registered your Florida business, take these steps to set up for success.
Form Your Florida LLC
Follow our step-by-step Florida LLC guide to file your Articles of Organization with SunBiz for $125.
Start Your LLC →
Get a Florida Registered Agent
Compare top registered agent services with a physical Florida address starting at $49/year.
Compare Agents →
Open a Business Bank Account
Separate your personal and business finances with a free or low-cost business checking account.
Compare Accounts →
Connect with the Florida SBDC
Access free business consulting, market research, and loan packaging help at 40+ locations statewide.
Find Your SBDC →
Write Your Business Plan
Use our free business plan template to create a plan that lenders and investors expect to see.
Get the Template →
Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Requirements change — always verify current fees and requirements directly with Florida Division of Corporations and the IRS before filing.
Ready to Form?
Get your Florida business registered with ZenBusiness — choose your structure, file the paperwork, and stay compliant from day one.
About the Author
Director of Entrepreneurial Strategy
Jennifer is a former founder who built and sold a boutique B2B logistics company in her thirties. She understands the emotional and strategic toll of building a business from the ground up without a massive safety net. She is deeply connected to the Atlanta startup ecosystem and is passionate about equitable funding.
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