How to Start a Business in Florida: Sunbiz Filing, EIN, and Licenses

To start a business in Florida, you choose an entity type, file formation paperwork with the state through the Sunbiz portal, get a federal tax ID, register for whatever taxes and licenses your industry requires, and then keep the entity active by filing an annual report every May 1. The state charges $125 to form an LLC and $70 for a corporation. Everything else depends on what you sell, where you operate, and whether you hire anyone.

Pick Your Entity Type First

The structure you choose affects your personal liability, your taxes, and how much paperwork you’ll deal with for the life of the business. Florida recognizes several options:

A Limited Liability Company (LLC) is the most popular choice for small businesses. It gives you liability protection without requiring a board of directors or formal officers, and it allows flexible tax treatment.
A profit corporation uses a more rigid structure with directors, officers, and shareholders. It works well if you plan to raise capital through stock or eventually go public.
A non-profit corporation is organized for charitable, educational, or similar purposes.
A general partnership is two or more people running a business together. Every partner is personally liable for business debts.
A limited partnership caps the liability of limited partners at their investment, but at least one general partner still carries full personal liability.

Most people forming a small business land on an LLC because it balances liability protection with minimal paperwork. If you’re not sure, that’s the safer starting point.

Choose and Check Your Business Name

Florida requires your name to be distinguishable from every other entity already on file with the Division of Corporations, and “distinguishable” is stricter than most people expect. Different suffixes, adding “the,” swapping “and” for an ampersand, plural versus singular, and punctuation changes do not count as distinguishable.¹ Run a free name search on Sunbiz before you file.

Your legal name also needs a designator. An LLC must include “Limited Liability Company,” “L.L.C.,” or “LLC.”² A corporation must include “Corporation,” “Company,” “Incorporated,” or an abbreviation such as “Corp.,” “Co.,” or “Inc.”¹ Limited partnerships use “L.P.” or “Limited Partnership.”

Want to operate under a brand name that differs from your legal entity name? File a fictitious name registration, commonly called a DBA. This applies to sole proprietors using anything other than their personal name and to entities trading under a different brand. The fee is $50 through the Division of Corporations.³

File Your Formation Documents Through Sunbiz

LLCs file Articles of Organization. Corporations file Articles of Incorporation. Both require the entity’s legal name, a physical street address for the principal place of business, and a mailing address if different. For LLCs, you also identify whether the company is managed by its members or by designated managers, and list at least one member or manager with an address.

Every Florida entity must designate a registered agent, meaning the person or company authorized to receive legal documents on your behalf. The agent must have a physical Florida street address, not a P.O. box, and must formally accept the appointment as part of your filing.⁴ You can serve as your own agent if you have a qualifying Florida address, or hire a commercial service.

Filings go through the Sunbiz E-Filing portal at sunbiz.org, which walks you through each field and processes payment at the end. Paper filings by mail to Tallahassee also work but take longer.

The fees:

LLC: $125, which is a $100 filing fee plus a $25 registered agent designation fee.⁵
Profit or non-profit corporation: $70, which is a $35 filing fee plus a $35 registered agent designation fee.⁶
Certified copy (optional): $8.75 for corporations by mail, $30 for LLCs.⁶⁵

Sunbiz accepts credit cards, debit cards, and prepaid Sunbiz accounts. Processing times move with filing volume. The Division publishes a live processing-dates page at sunbiz.org showing which submission dates are currently being worked.⁷ Recently, online filings have run about 8 to 10 business days, though this fluctuates. Once approved, you can download a certified copy, which banks and landlords will ask for as proof your entity exists.

Get Your Federal EIN

After the state approves your entity, apply for an Employer Identification Number from the IRS. The IRS recommends forming your entity with the state first, because applying before your entity exists can delay the process.⁸ The online application is free and takes only a few minutes. You’ll need your entity type, your legal business name as filed in Florida, and the Social Security number or ITIN of the responsible party.

An EIN functions like a Social Security number for your business. You’ll use it to open bank accounts, file federal taxes, and hire employees. Even single-member LLCs with no employees usually need one because banks and vendors require it.

Draft an Operating Agreement or Bylaws

Florida does not require LLCs to file an operating agreement with the state, but skipping one is a mistake. The agreement is an internal document that sets each member’s ownership percentage, how profits and losses are split, what happens if a member leaves, and how major decisions get made. Without one, Florida’s default rules under Chapter 605 govern your LLC, and those defaults rarely match what the members actually intended.⁹ The SBA warns that operating without an agreement can jeopardize your liability protection because the LLC starts to resemble a sole proprietorship or informal partnership.¹⁰

Corporations use bylaws for the same purpose, covering board meetings, officer elections, and shareholder voting. Neither document gets filed with the state, but both should be drafted before you start doing business and kept with your company records.

Sales Tax, Licenses, and Local Permits

Filing your entity does not automatically authorize you to sell anything. Several extra registrations may apply depending on what your business does and where.

Sales Tax

If your business sells taxable goods or services, register with the Florida Department of Revenue for a sales tax certificate before collecting any tax. The state rate is 6%, and most counties add a discretionary surtax on top.¹¹

Professional and Industry Licenses

The Department of Business and Professional Regulation handles licensing for dozens of industries, including construction, real estate, cosmetology, restaurants, and hotels. Operating without a required state license exposes you to administrative penalties of up to $5,000 per incident and civil penalties from $500 to $5,000 per offense.¹² The Department of Agriculture and Consumer Services separately oversees sectors like food processing and telemarketing, with their own permits.

Local Business Tax Receipt

Most Florida cities and counties require a local business tax receipt, formerly called an occupational license, before you can operate in their jurisdiction. It applies to storefronts and home-based businesses alike. The fee varies by location and business type, and you may also need to confirm your address meets local zoning. Contact your county tax collector or city clerk for the specific cost and process in your area.

If You Plan to Hire Employees

Hiring triggers a separate set of registrations.

Florida calls its unemployment insurance program “reemployment tax.” You must register with the Department of Revenue if your business pays at least $1,500 in wages during any calendar quarter, or has at least one employee for any part of a day in 20 different weeks in the same calendar year.¹³ Registration is done through the Florida Business Tax Application, Form DR-1.

Florida also mandates workers’ compensation coverage for construction businesses with one or more employees.¹⁴ Non-construction businesses generally need coverage once they reach four or more employees.

On the federal side, you’ll withhold and remit federal income tax, Social Security, and Medicare from paychecks, match the Social Security and Medicare portions, and pay federal unemployment tax under FUTA. Timely state reemployment tax payments earn a credit that reduces the effective FUTA rate to 0.6% on the first $7,000 of each employee’s wages, or roughly $42 per employee per year.¹⁵

You must also report new hires to the state, and federal law requires you to display workplace posters covering minimum wage, anti-discrimination, and safety rights. The Department of Labor’s Poster Advisor tool identifies which posters apply.¹⁶

File Your Annual Report by May 1

Every active Florida business entity must file an annual report by May 1 each year through Sunbiz. This is where new owners lose their entity without realizing it.

LLC: $138.75 if filed by May 1.⁵
Profit corporation: $150 if filed by May 1.¹⁷
Late fee after May 1: an additional $400 applies to LLCs, profit corporations, and limited partnerships.¹⁷

If you still haven’t filed after the late-fee window, the state administratively dissolves your entity on the fourth Friday in September.¹⁸ Reinstatement is possible but expensive: $600 for a profit corporation plus all missed annual report fees.⁶ Set a calendar reminder for early April every year. The report itself is mostly a confirmation that your address, registered agent, and officer or member information is still current.

Keep Your Liability Shield Intact

Forming an LLC or corporation puts a legal shield between your personal assets and business debts, but the shield only holds if you treat the business as a separate entity. Courts will “pierce the corporate veil” and hold you personally liable if they find you’ve blurred that line. The common mistakes: mixing personal and business funds, running everything through a personal checking account, starting the entity with so little capital that it could never realistically cover its obligations, ignoring your own operating agreement, and keeping poor records of member contributions, distributions, and major decisions.

Open a dedicated business bank account the day you receive your EIN. Pay yourself through documented distributions or payroll rather than pulling cash informally. If you’re a corporation, keep meeting minutes. Document every significant financial decision.

Federal Beneficial Ownership Reporting

The Corporate Transparency Act originally required most small businesses to file a Beneficial Ownership Information report with FinCEN, disclosing the individuals who ultimately own or control the company. In March 2025, the Treasury Department exempted all domestic reporting companies and their beneficial owners from this filing requirement.¹⁹ Treasury also announced it would not enforce penalties against U.S. citizens or domestic companies under either the old or revised rules.²⁰ If you’re forming a standard Florida LLC or corporation, you currently have no BOI filing obligation. Foreign-owned entities registered in Florida may still need to file within 30 days of formation. This area has changed repeatedly since 2024, so check FinCEN’s website if foreign ownership is part of your situation.

1
The Florida Legislature. Florida Statutes Chapter 607 – Florida Business Corporation Act – Section 0607.0401
2
The Florida Legislature. Florida Code 605.0112 – Name
3
Florida Department of State. Florida Fictitious Name Registration
4
The Florida Legislature. Florida Statutes 607.0501 – Registered Office and Registered Agent
5
Florida Department of State. LLC Fees
6
Florida Department of State. Corporate Fees
7
Florida Department of State. Document Processing Dates
8
Internal Revenue Service. Get an Employer Identification Number
9
The Florida Legislature. Florida Statutes 605.0105 – Operating Agreement
10
U.S. Small Business Administration. Basic Information About Operating Agreements
11
Florida Department of Revenue. Florida Sales and Use Tax
12
The Florida Legislature. Florida Statutes 455.228 – Unlicensed Activities
13
Florida Department of Revenue. Employer Guide to Reemployment Tax
14
Florida Department of Financial Services. Important Workers’ Compensation Information for Contractors
15
Employment & Training Administration – U.S. Department of Labor. Unemployment Insurance Tax Topic
16
U.S. Department of Labor. Workplace Posters
17
www.sunbiz.org. Profit and NonProfit Annual Report Help
18
The Florida Legislature. Florida Statutes 617.1421 – Administrative Dissolution
19
Federal Register. Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension
20
U.S. Department of the Treasury. Treasury Department Announces Suspension of Enforcement of Corporate Transparency Act Against U.S. Citizens and Domestic Reporting Companies