Florida is a popular state to form a business in for a simple reason: there's no personal income tax. The tradeoff is a strict annual report deadline with a penalty that's nearly three times the report fee itself. Here's what it takes to start a business in Florida in 2026.
1. Which business structure fits you?
Before you file anything, it helps to know what you're actually choosing between.
- Sole proprietorship. No filing required to start, and you and the business are legally the same entity. Simple, but you're personally liable for whatever the business owes.
- Partnership. Two or more people running a business together, with the same liability exposure as a sole proprietorship, just split across partners.
- LLC. The most common structure for small businesses in Florida. It separates your personal assets from the business's debts and lawsuits.
- Corporation, either S-corp or C-corp. More paperwork and more formality, usually worth it once you're bringing on investors or multiple shareholders.
For a deeper comparison, see our guide on choosing a business structure.
LLCs and corporations register with the Florida Division of Corporations, known as Sunbiz, the state agency that handles business filings. Sole proprietorships and general partnerships don't register there, since there's no formation document to file.
2. Register your business
Forming an LLC
You form an LLC in Florida by filing Articles of Organization through Sunbiz. The filing fee is $125, which already includes designating your registered agent. Processing is typically fast, often within a couple of business days online.
Every LLC needs a registered agent with a physical Florida address, available during business hours. You can serve as your own agent for free if you live in the state, or pay a commercial service.
Florida doesn't require an operating agreement by law, but write one anyway, especially with more than one member, since it's what defines how the business is actually run.
Sole proprietorships and DBAs
Sole proprietorships don't file with the state. If you're operating under a fictitious name, Florida requires you to register it with the Division of Corporations, also through Sunbiz, which is a bit unusual since most states handle DBAs at the county level.
3. Get an EIN
An Employer Identification Number is free straight from the IRS and takes about 15 minutes online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even if you're a single-member LLC with no employees.
4. Check licenses and permits
Florida doesn't have one general statewide business license. What you need depends on your industry and location: professional licensing for regulated fields, a local business tax receipt from your county or city, health permits for food businesses, and sales tax registration with the Department of Revenue if you sell taxable goods or services. Our guides on professional licensing by industry and zoning laws for home businesses cover more of this.
5. Understand Florida taxes
Florida has no personal state income tax, which is the main draw for a lot of founders. If your LLC elects to be taxed as a C-corporation, though, it owes Florida's 5.5% corporate income tax on its profits; pass-through LLCs and sole proprietorships skip this entirely.
Sales tax starts at a 6% state rate, with counties allowed to add a discretionary surtax of up to 2%, pushing the combined rate to around 7% on average and as high as 8% in a few counties.
6. Stay compliant
Every Florida LLC files an Annual Report through Sunbiz between January 1 and May 1 each year, even if nothing about the business has changed. The fee is $138.75. Miss the May 1 deadline and Florida adds an automatic $400 late penalty, non-negotiable, bringing the total to $538.75. Miss it long enough and the state administratively dissolves the LLC in September.
Florida business costs at a glance
| Item | Cost |
|---|---|
| Articles of Organization (LLC) | $125 |
| Annual Report (every year, due May 1) | $138.75 |
| Late annual report penalty | $400 |
| Registered agent service (optional) | $100 to $250/year |
| EIN | Free (IRS) |
| State income tax (individuals) | None |
| Corporate income tax (C-corp election) | 5.5% |
| State sales tax | 6% + up to 2% county surtax |
Frequently asked questions
Does Florida have personal income tax?
No, Florida has no personal state income tax, the main draw for a lot of founders.
How much does it cost to form an LLC in Florida?
$125 for Articles of Organization, which already includes designating your registered agent.
What happens if I miss Florida's Annual Report deadline?
Florida adds an automatic $400 late penalty on top of the $138.75 report fee, bringing the total to $538.75, and can administratively dissolve the LLC in September.
When is Florida's Annual Report due?
Between January 1 and May 1 each year, even if nothing about the business has changed.
How high is sales tax in Florida?
A 6% state base, with counties adding a discretionary surtax of up to 2%, averaging around 7% combined.
Fees and rates above come from the Florida Division of Corporations and Department of Revenue as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Florida-licensed attorney or CPA about your specific situation.