How to start a business in Florida: A step-by-step guide

Published Monday 22 September 2025

Table of contents

• Why start a business in Florida
• How to start a business in Florida
• Mistakes to avoid when you start a small business in Florida
• Launch your business confidently with Xero
• FAQs on starting a business in Florida

Key takeaways

• To start a business in Florida, check local, state, and federal requirements, and choose a business structure that works for your business type and your ambitions.
• Get an EIN from the IRS if you want to open a business bank account, hire employees, or start a corporation.
• Open Florida tax accounts if you plan to sell taxable goods or services, hire employees, or pay industry-specific taxes.
• Apply for a local business license (a business tax receipt) from your city or county, if needed.
• Accounting software like Xero can make setup easier and help you track the numbers.

Why start a business in Florida

Florida offers a unique mix of advantages for entrepreneurs, from its growing population and strong tourism industry to its favorable tax climate. With no state income tax, relatively low business costs, and access to a diverse, skilled workforce, the state makes it easier for small businesses to thrive.

Florida’s strategic location also provides opportunities for international trade, particularly with Latin America and the Caribbean. Whether you’re opening a retail shop, restaurant, or professional service, Florida’s business-friendly environment can help set your venture up for success.

How to start a business in Florida

The precise steps to start a company in Florida vary according to the structure of your business, your location, and the type of business you launch.

You may not need to follow these steps if you’re running a small operation with limited aims – if you’re a sole proprietor starting a home-based business that you run under your own name, and that doesn't sell taxable goods or services, or have employees.

Here are the five essential steps most businesses need to take.

1. Choose your business structure

At this point, you know what type of business you want to start – but before going any further, you need to choose your business's structure.

Here are the main options with a brief overview of their pros and cons.

Types of business structures in Florida

Business structure: Sole proprietorship

• Registration process: Minimal registration process – one owner
• Liability for debts and taxes: Personal liability for all business debts and taxes

Business structure: General partnership

• Registration process: Minimal registration process – more than one owner
• Liability for debts and taxes: Personal liability for all business debts and taxes

Business structure: Limited partnership

• Registration process: Must be registered with the state and renewed annually
• Liability for debts and taxes: Liability protection from business debts; taxed as a partnership, unless you choose to be taxed as an S-corp

Business structure: Limited liability company (LLC)

• Registration process: Must be registered with the state and renewed annually
• Liability for debts and taxes: Liability protection from business debts; taxed as a sole proprietorship or partnership, unless you choose to be taxed as an S-corp

Business structure: Corporation

• Registration process: Complex registration and tax requirements
• Liability for debts and taxes: Owners/shareholders are not liable for business debts or taxes, except in extreme cases

There are pros and cons to all of these structures. Many entrepreneurs like to start LLCs because they offer flexibility and liability protection.

For example, if you start a single-member LLC, you create a distinction between you and the business – that means you're not personally liable for most business debts. You file federal taxes as a sole proprietor (which is quite straightforward) and you don't have to worry about Florida's corporate income tax.

But as your business expands, you can choose to be taxed as an S-corp This involves more paperwork but gives you access to extra tax deductions and potential savings.

2. Register your business with the state

If you’re creating an LLC, corporation, or limited partnership, you must register the business with the state. You don't need to register general partnerships or sole proprietorships in Florida, but if you're using a business name other than your own, you'll need to register a fictitious name.

You can register all businesses online through Efile on SunBiz – just click the entity you want to create to load the online application. Otherwise, you can register through the mail – note there is a unique application for each business type.

To register, you need to:

• Provide the business name and address – do a business name search with the Florida Department of State to make sure your chosen business name is unique
• Name a registered agent who's willing to receive correspondence for the entity
• If you're registering a corporation, name the person filing the document (the incorporator) and include their contact details

The Florida Department of State has more information on how to register your business, including links to the registration forms.

3. Get an EIN

You need an employer identification number (EIN) from the state if you want to do any of the following:

• Form a partnership, LLC, or corporation
• Hire employees
• Open a business bank account

Get your EIN in just a few minutes by using the IRS's online application, or file an EIN application through the mail – which can take a few weeks.

4. Register for tax accounts with the state

You must register with the Florida Department of Revenue (DOR) if you plan to sell taxable goods and services or hire employees in Florida. You also have to register if you’re liable for any industry-specific taxes, like the prepaid wireless fee or the gross receipts tax on dry cleaning services.

The DOR has a single application for most business taxes – apply online with the Department of Revenue or file a paper copy of the Florida business application.

Corporations and LLCs that choose to be taxed as corporations must pay corporate income tax in Florida. You don't need to register for an account – just file the returns annually and pay the tax accordingly.

The DOR has PDFs of the Florida business application and the Florida corporate income tax return.

5. Get local licenses

Most cities refer to their local business licenses as Business Tax Receipts. Check with your city (or county if you're located outside of city limits) for local requirements.

Costs for local licences vary by location and the type of business. If you’re operating from a bricks-and-mortar location, you may also need a Certificate of Use.

Mistakes to avoid when you start a small business in Florida

To be successful, avoid these common mistakes.

Choose your business structure carefully

Your business structure directly affects how you're taxed, the forms you need to file, and your personal liability for business debts.

You want a structure that gives you the advantages you need without creating unnecessary complications. If you’re not sure, ask your accountant or business attorney.

Take time with the formation process

Florida takes a while to process business registrations, and your local area might have a waiting period for local licenses as well. So give yourself time to work through the process.

Remember to comply with requirements at all levels of government

All business owners (and taxpayers) need to be aware of three levels of government: federal, state, and local. So check your business complies with the requirements at each level.

Launch your business confidently with Xero

Xero makes launching a business easier. Xero’s intuitive, user-friendly design helps you navigate the lengthy admin to set up a business.

And once you’re up and running, Xero helps clarify your expenses, track your cash flow, and manage your financial admin while you set about growing your business.

Try Xero for free today.

FAQs on starting a business in Florida

Here are answers to many of new business owners' most common questions.

Do I need a state business license in Florida?

No – there is no general state business license in Florida. But many professionals need state licenses, so check out the Department of Business and Professional Regulation (DPBR) for more details.

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

Registration fees in Florida depend on the type of business entity you choose. As of 2025, corporations pay a $35 filing fee plus $35 to designate a registered agent. Limited liability companies (LLCs) pay a $100 filing fee and $25 for the registered agent designation. General partnerships have a $50 filing fee, while limited partnerships face higher costs at $965 plus $35 for the registered agent designation.

Businesses registering a fictitious name pay $50. The Florida Division of Corporations, through its SunBiz portal, provides a full breakdown of registration and renewal fees.

How often do I need to renew my Florida business registrations?

You must renew corporations, LLCs, limited partnerships, and fictitious names annually between January 1 and May 1. The fee ranges from $50 to $500. Make sure you renew on time – there’s generally a $400 fee for late renewals.

How long does it take to register a business in Florida?

It varies. The Florida Division of Corporations processes applications as they are received, and posts its document processing dates online. At the time of writing, the state is processing new business filings 5 to 7 days after it receives them, but is taking up to 6 weeks to process certain amendments or name changes.

Do I need to register my partnership under a fictitious name?

It’s up to you – general partnerships can file as a partnership to register their name, or they can file a Fictitious Name Registration – they don't need to do both. Limited partnerships must register their partnership with the state, which allows them to register their names.

Does my LLC partnership need to pay corporate income tax in Florida?

No. If your partnership is registered as an LLC, you do not need to file a corporate income tax return in Florida. Instead, you should file a partnership return with the IRS and the Florida Department of Revenue.

But if your LLC is an S-corp, you should file an S-corp return with the IRS, and if you owe tax on line 23c, you must pay corporate income tax to the State of Florida.

What if I don't register my business name?

Failing to register your business or operating under a fictitious name without registration can be a misdemeanor in the State of Florida.