Florida ranks among the top states in which to start a business, thanks to its competitive corporate income tax rates, strong economic growth, and lack of personal income tax. The state attracts businesses in a range of industries, including international trade, tourism, and agriculture, making it fertile ground for new ventures.

Below, we’ll look at Florida’s business environment and explain how to register your business and start operating. Whether you’re a first-time entrepreneur or looking to expand your business footprint, here’s what you should know to start a business in Florida.

What’s in this article?

• Advantages of starting a business in Florida
  
• Seven steps for starting a business in Florida
  
• How much does it cost to start a business in Florida?
  
• Industries that are most likely to benefit from registering in Florida
  
• Resources for starting a business in Florida
  
• How Stripe Atlas can help
  

Advantages of starting a business in Florida

Florida offers a favorable business climate thanks to its tax advantages, diverse economy, and supportive government policies. Here’s how Florida stands out:

• No personal income tax: Florida is one of the few states with no personal income tax, which makes it an attractive destination for entrepreneurs and employees. It offers businesses greater financial flexibility and helps attract skilled workers.

• Relatively low corporate taxes: Florida’s corporate tax structure is more favorable to businesses than that of many other states.

• Strong economy and diverse industries: Florida has a diverse economy with strengths in agriculture, aerospace, and healthcare. It’s also a leader in tourism and hospitality, attracting millions of visitors every year and creating a vast market for entrepreneurs in the hotel, restaurant, theme park, and entertainment industries.

• Large and growing population: Florida’s large—and growing—population offers a substantial customer base.

• International business hub: Florida is a major gateway to Latin America and the Caribbean, with several international airports and seaports that facilitate international trade and business connections.

• Business-friendly regulations: The state government aims to create a business-friendly environment with straightforward regulations and processes.

• Climate and lifestyle: Florida’s warm climate, beaches, and outdoor lifestyle are a major draw for entrepreneurs seeking a high quality of life.

Florida is not without drawbacks, such as natural disasters that can disrupt business operations and cause substantial financial losses, but overall the state offers an advantageous environment for new businesses.

Seven steps for starting a business in Florida

Once you have a comprehensive business plan and you’re ready to get your business off the ground, follow this step-by-step guide on how to formally register and begin doing business in Florida:

Step 1: Choose a name.

Choose a unique business name, then confirm its availability in Florida by searching the Florida Department of State’s Division of Corporations Sunbiz website. If you’re operating under a name other than your legal name, you’ll need to register a fictitious name (also known as “doing business as” or DBA). If you want to protect your business name, consider trademarking it.

Step 2: Choose a corporate structure.

Every business structure has different legal and tax implications. Consult with an attorney or accountant to determine the best fit for your business. Here are the types of business structures:

• Sole proprietorship: This is the simplest business structure. A downside of a sole proprietorship is you’re personally liable for business debts.

• Partnership: In this business structure, two or more people share ownership and responsibility.

• Limited liability company (LLC): This structure offers personal liability protection and flexible management options.

• Corporation (S corp or C corp): This business structure is a separate legal entity with shareholders, directors, and officers. It has the strongest liability protection but more formalities.

Step 3: Choose a registered agent.

Every Florida business must have a registered agent who can receive legal documents and official notices on behalf of the business. You can be your own registered agent if you’re a Florida resident, or you can hire a registered agent service.

Step 4: File registration documents.

File the necessary registration documents to register your business with the state. LLCs must file articles of organization, and corporations must file articles of incorporation. You must also pay the filing fee associated with registering your business, online or by mail.

Step 5: Apply for relevant business licenses and permits.

Depending on your industry and location, you might need different federal, state, or local business licenses and permits to operate legally. These could include sales tax permits, professional licenses, zoning permits, or health permits. Research the requirements for your business type and location to ensure compliance.

Step 6: Apply for an EIN, and open a bank account.

Register for an Employer Identification Number (EIN) and open a business bank account to start doing business.

• EIN: An EIN is like a Social Security Number for your business and is required for tax purposes. You can apply for an EIN through the IRS website.

• Business bank account: A business bank account lets you separate your personal and business finances.

Step 7: Research insurance and legal obligations.

Ensure you have the appropriate insurance coverage and are clear on your legal responsibilities before doing business.

• Insurance: Necessary insurance coverage might include general liability, property, and workers’ compensation insurance.

• Taxes: Register with the Florida Department of Revenue for sales tax and other relevant taxes.

• Local regulations: Check with your city or county for any additional local regulations that might apply to your business.

How much does it cost to start a business in Florida?

The cost of starting a business in Florida depends on how you register your company. Here are the main state fees to consider:

• Filing fee: $35 for a corporation; $100 for an LLC

• Registered agent designation: $35 for a corporation; $25 for an LLC

• Name reservation (optional): $35 for a corporation; $25 for an LLC

• Annual report fee: $150 for a corporation; $138.75 for an LLC

Industries that are most likely to benefit from registering in Florida

Registering in Florida can be particularly advantageous for businesses in these industries:

• Tourism and hospitality: Businesses catering to tourists, such as hotels, restaurants, entertainment venues, and water sports activities, have an advantage in Florida thanks to its beaches, theme parks, and warm climate.

• Real estate and construction: Florida’s growing population and desirable location drive demand for housing and commercial spaces.

• Agriculture: Florida’s climate supports a strong agricultural industry, and the state is a natural home for agribusinesses and food processing businesses. Citrus fruits, sugarcane, tomatoes, and other crops are major contributors to the state’s economy.

• Aerospace and aviation: With major hubs such as the Kennedy Space Center and a strong presence of aerospace businesses, Florida is a thriving environment for the aerospace and aviation industries.

• Healthcare and life sciences: Florida’s aging population and medical research institutions have created a favorable market for healthcare services and innovation focusing on senior care, medical devices, and pharmaceutical research.

• Marine industries: Florida’s extensive coastline and waterways make it a hub for marine industries. Boat manufacturing, fishing, and marine tourism are all prominent sectors in the state.

Resources for starting a business in Florida

Here are some important resources for starting a business in Florida:

State government resources

• Open MyFlorida Business: This official state portal provides step-by-step guidance for starting, operating, and growing your business in Florida. It has information on business licenses, permits, taxes, and regulations.

• Florida Department of State, Division of Corporations: This is where you register your business entity and file annual reports.

• Florida Department of Revenue: This department handles business tax registration and collection.

Business support organizations

• Florida Small Business Development Center (SBDC) Network: This network provides free consulting, training, and resources for small businesses.

• SCORE: This business mentoring organization has free mentoring and workshops from experienced business professionals.

• FloridaMakes: This organization helps manufacturers improve their competitiveness and access resources.

• SelectFlorida: This state economic development organization offers assistance and resources for businesses of all sizes.

Local resources

• Local chambers of commerce: Local chambers of commerce provide networking opportunities, business development programs, and advocacy for local businesses.

• Economic development organizations: Many counties and cities in Florida have economic development organizations that provide resources and assistance for new businesses.

• Small-business incubators and accelerators: These programs provide mentorship, office space, and resources to help startups grow.

Online resources

• US Small Business Administration (SBA): This agency has a wide range of resources including loans, grants, and counseling for small businesses.

• MyFlorida.com: This official portal for the Florida state government provides services and information.

• Florida Trend: This business magazine has articles and resources on Florida’s economy and industries.

Additional resources

• Industry-specific associations: Many industries have associations or organizations that provide specialized resources and support for businesses in their field.

• Professional services firms: Consider consulting with attorneys, accountants, and others who specialize in business formation and compliance in Florida.

• Networking events: Attend industry events and conferences to meet other entrepreneurs and potential partners.

How to save money when incorporating a business

While some incorporation fees are unavoidable, it’s possible to lower your business’s costs by handling as much as possible in-house and seeking professional help when necessary. Here are a few key strategies for saving money:

• DIY incorporation: If your business structure is straightforward and you’re comfortable with paperwork, filing the incorporation documents yourself can save you hundreds or even thousands of dollars in legal fees. Online resources and guides are available to help you through the process.

• Compare registered agent services: Registered agent fees vary between providers. Compare prices and services from different companies to find the best deal for your needs.

• Consider forming an LLC: Limited liability companies (LLCs) are often simpler and less expensive to form than corporations, making them a cost-effective option for small businesses.

• Choose the right location: Some locations have lower filing fees and franchise taxes than others. Research different places to see which ones have the most favorable business environment for your industry and budget. Delaware is a popular choice in the US for its business-friendly laws and low fees, for example.

• Take advantage of online legal services: Online legal services offer affordable packages that can guide you through the incorporation process and provide templates for necessary documents. Some might even have discounts and promotions for new customers. This can be less expensive than hiring an attorney.

• Negotiate professional fees: If you need to hire an attorney or accountant, don’t hesitate to negotiate their fees. Some professionals might offer discounts for startups or small businesses.

• Plan for ongoing costs: While saving on initial incorporation costs is important, make sure to factor in ongoing expenses such as annual report fees, franchise taxes, and registered agent fees.