Complete Guide to Starting a Business in Florida — How Much Money does it Cost to Incorporate?
Incorporating your business only requires fees from the state government. However, there are several hidden costs that can make the process more than you had expected. Learning as much as you can about the process to incorporation can help you save money and time when setting up your business’ legal structure.
First, you have to file Articles of Incorporation with the Secretary of State. In Florida, LLC and S-Corporation fees are $99. You may have to pay for other government filing fees, however Florida has some of the most business-friendly regulatory systems in the nation. You can view the complete list of Florida Incorporation fees and regulations at the Florida DMV website.
Aside from your incorporation fees, you will likely want to consult an attorney. Some attorneys offer a flat rate for incorporation legal services, while others charge by the hour. Ask your attorney how they bill, and if they require upfront payment or a deposit on their services. An attorney can cost anywhere from $500 to $1500, depending on their experience level and the firm’s reputation.
While it may seem an unnecessary expense, having a trusted lawyer to help you file for Articles of Incorporation can save you time and the stress of navigating the legal landscape of business. Plus, you won’t have to worry about making mistakes when a professional manages your legal processes. It gives you the chance to work with an attorney for the first time, who you may wish to hire for future services.
After you have incorporated your business, you will be expected to pay additional fees and taxes. Your corporation is a separate legal entity, which means the profits incurred every year will be taxed, separate from the income tax of your principals and shareholders. However, a single-member LLC (where the owner serves as the board of directors) is not required to fill out a separate income tax return for the company.
Incorporating your business is relatively inexpensive in Florida, but if you do business in other states (such as a joint venture), you may have to pay for additional fees. For example, California requires a first year franchise tax prepayment for every business that files for incorporation. These fees do not apply in Florida, but if you do plan to have locations outside the state, you should check with the local laws to make sure you are operating within the legal statutes of that state.
Determining how you want to incorporate is a crucial step to preparing your company to open. You should first research the different types of corporate structures when filing for your Articles of Incorporation.
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