How to start a business in Florida [Updated 2024]

Want to start a business in a place with beautiful weather and a low tax burden? Look no further than Florida. The Sunshine State is famous for having great weather, no personal income tax, and easy access to capital for would-be company owners. Just ask the 2.8 million small business owners Florida is home to. 

If you’ve got a well-thought-out business plan and are ready to become a Florida business owner, you may be wondering about the regulatory requirements you’ll need to follow to get set up—like registering your company and paying the right payroll taxes. Our step-by-step guide will take you through everything you need to do to structure your startup or small business for success in Florida.

1. Name your business

You’ve got a great business idea and a solid plan. Kick off the business formation process by picking a name for your company! The one you choose should do more than just attract customers—it also needs to comply with Florida’s regulations. Here’s what to do:

• Make sure the name is “distinguishable.” This means it must be entirely unique from the names of other businesses, even when it’s modified by an article, abbreviated, or pluralized. You can see if the name you want for your small business is available on the Florida Department of State’s Division of Corporations website.
• Make sure your name is available at the federal level: You can see if it’s been trademarked already by searching the US Patent and Trademark Office database. 

After you’ve confirmed your name is available, it’s time to file your Florida Business Name Registration. The exact steps you need to take depend on your chosen business structure. 

• If you’re registering an LLC: File Articles of Organization with the Division of Corporations. 
• If you’re registering a corporation: File Articles of Incorporation with the Division of Corporations.
• If you’re registering a sole proprietorship or partnership: Sole proprietors in Florida must include their personal name in the title of their business. Similarly, general partnership names are required to include the partners’ last names. If you don’t want to do this, in both cases, you need to file for a Fictitious Name, aka a DBA, or “doing business as.” Fictitious Names need to be registered with the Division of Corporations.

When you register your business name, it’s a good idea to register a web domain and social media accounts using that name to ensure nobody else can use it.

2. Explore your funding options

Getting the capital together for your new business might seem daunting, but don’t resign yourself to running a long, stressful crowdfunding campaign just yet. Florida offers numerous small business grants and loans for aspiring entrepreneurs. Floridajobs.org is a great resource that offers more information on small and minority business programs, but here’s a brief look at the options:

• Florida small-business grants. The Sunshine State has many grants for those looking to start small businesses, ranging from the Prospera grant for Hispanic entrepreneurs to the City of Orlando’s Business Assistance Program to North Miami Community Redevelopment Agency grants. Just make sure you read the application instructions of each carefully; they’re often for specific types of projects or specific groups of people.
• Florida state loan programs. The state government offers a number of loan programs aimed at encouraging business development in Florida by providing qualifying companies with funding. These include the Rebuild Florida Business Loan Fund, which offers financial assistance to businesses in communities that were impacted by Hurricane Michael, among other groups. 
• Federal loan programs. The Small Business Administration (SBA) offers educational resources, disaster relief, microloans, and more to current and potential small business owners. You can learn more on SBA.gov.

3. Decide on your business structure 

There are generally four types of business structures available to Florida business owners. You’ll need to choose the best one for you. 

Here’s a brief rundown of each business type, what it is, and the pros and cons of selecting that structure:

4. Register your business in Florida

You need to register your business with Florida’s Department of State (DOS) and pay a filing fee. This is true even for a sole proprietorship if you plan to operate the business under a name other than your own. Below are the registration forms and costs you should be aware of.

5. Decide on a registered agent

If you’re registering a limited liability company (LLC), a corporation, or a limited partnership (LP) in Florida, you’re required to assign a registered agent and a registered office. This individual or company agrees to receive mail on your business’s behalf in the event of a lawsuit, and they also accept tax and legal documents on your behalf. If you skip this requirement, you’ll be prohibited from either filing or defending yourself against a lawsuit in a Florida court. 

Florida residents may either hire a professional registered agent or designate an owner of their company or an employee as the registered agent. People sometimes opt for hiring a professional to save money: It can cost anywhere between $50 and $500 per year. 

6. Apply for an Employer Identification Number

You need to get a federal Employer Identification Number (EIN) from the IRS before you can hire and pay employees. This is true in all 50 states. 

An EIN is a nine-digit identifier that’s assigned to sole proprietors, corporations, partnerships, and LLCs for tax filing and reporting purposes. It’s similar to the unique nine-digit Social Security number that’s assigned to individuals. It’s free and easy to get: Just fill out Form SS-4 and send it to the IRS. It’ll take about four weeks if you send your application in by mail. 

7. Get up to speed with Business Tax Credits

Not only does the state have a low tax burden, but the Florida Department of Revenue also offers tax credits to businesses to further incentivize business development and job creation in the Sunshine State. That’s right: You already won’t pay as much in taxes as business owners in other states, and you could be paying even less. 

Florida business owners can take advantage of many tax credits, including: 

• Experiential Learning Tax Credit Program: Qualifying businesses that employ apprentices and student interns for taxable years between the calendar years of 2022 and 2025 can receive $2,000 in credit per apprentice or intern, up to a maximum of $10,000, or five apprentices and/or interns.
• Rural Job Tax Credit: Eligible businesses that are located in certain rural areas can get up to $500,000 during a calendar year for engaging in job-creating activities.

8. Stay on top of filing requirements and taxes

One major bonus of operating a business in Florida? Your company is exempt from state income tax unless it is set up as a C-Corp. However, the state still requires business entities to file documents with the government regularly. Which forms you have to file and when depends on the kind of business you own. A brief overview of major filing requirements, deadlines, and fees for sole proprietorships, LLCs, and partnerships is included below:

• Sole proprietorship: There are no special reporting requirements for sole proprietorships because the owner and the business aren’t considered separate legal entities in Florida. So, the owner of a sole proprietorship would simply file the income they make from their company on their individual income tax return. 

• LLC: Florida LLCs must file an Annual Report each year on May 1. The filing fee is $138.75. In terms of taxes, the state government treats the LLC as a sole proprietorship, a partnership, or a corporation, depending on how the company files its federal taxes. Depending on your LLC’s filing status, you might have to pay the Florida Department of Revenue sales and use tax, reemployment tax, and/or corporate income tax. 

• Partnerships: In Florida, partnerships (the business entity) don’t pay taxes. Instead, they must file Form 1065, a Partnership Return, with the IRS annually. The partners themselves (the owners) pay taxes on the profits they make, and they report these on their individual income tax returns. There are no special forms.

9. Find a payroll solution

Will your Florida business need to hire employees or independent contractors? Once you bring workers on board, you have a whole new set of considerations to think about. For instance, it’s critical to ensure you’re classifying them correctly to avoid costly penalties. Then there’s overtime pay: Under state law, any hours over 40 worked in a seven-day period are considered overtime. Accordingly, employees are entitled to receive 1.5x their usual rate for each additional hour worked. 

It’s also important to remember that Florida’s minimum wage laws are changing. At the time of writing, the Sunshine State’s new minimum wage is now $12 per hour, which is higher than the federal rate. The minimum wage rate in Florida will keep increasing by $1 each year until it reaches $15 per hour in 2026. 

You need reliable payroll software to ensure your employees and contractors are paid on time and accurately. Rippling removes the hassle of running payroll manually and ensures you remain compliant with overtime and minimum wage laws in Florida. With Rippling Time & Attendance, you can automatically track employees’ hours, and you’ll be notified when a worker is reaching the 40-hour threshold. Approved hours will sync seamlessly to payroll: All you have to do is click “submit.” Rippling calculates the net pay and taxes in seconds for you.

Hiring globally? Rippling’s got you covered across the globe. With Rippling, you can: 

• Pay employees in different tax jurisdictions and in different currencies in a single pay run. 
• Include hourly and salaried employees and independent contractors. 
• Manage all of your people, systems, and data around the world in one place.

10. Support and scale your growing business with Rippling

Whether you’re a new Florida business owner or an experienced C-Suite executive, you need an HRIS (Human Resource Information System) to streamline your onboarding processes, run payroll for you, administer benefits, manage talent, and much more. And it’s best if you start with a solution that can grow with your company. Rippling is built to keep up with businesses no matter how big they grow or where in the world they expand. 

Rippling has everything you need to run your global workforce—in a single system. 

• Hire, pay, and manage your people—whether they’re based in Orlando or Oslo. 
• Bring all benefits—health insurance, 401(k), and more—into one system and automate tedious tasks like enrolling new hires, administering COBRA, and updating deductions.
• Remain in compliance with local, state, and federal regulations—with a plan of action for each one.
• Effortlessly keep all your recruiting data up to date—from open headcount to new hires—and automate every step of the hiring lifecycle. 
• Have a single source of truth for HR analytics, policies, and more.

FAQs about setting up a business in Florida

Do I need a business license in Florida?

The short answer is yes. Most businesses need at least one type of license to operate in Florida. The Sunshine State requires licenses for companies that are operating in certain industries. For example, if extensive training is required for your profession, you need a license. This includes doctors, real estate agents, accountants, and barbers. While the state itself doesn’t require a business license to operate in Florida, most counties and cities do mandate companies operating in their jurisdiction apply for and maintain a valid license. 

Do I need a business bank account when launching a business in Florida?

Sole proprietorships and general partnerships can use their personal bank accounts (although this isn’t advisable), but LLCs need a business account in Florida. 

Do I need to get business insurance?

Florida businesses with employees must have workers’ compensation insurance; otherwise, state law doesn’t mandate companies get business insurance. 

What is Florida’s state payroll tax?

Florida’s only state payroll tax is unemployment insurance (UI).

Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.