Last updated: February 23, 2026
Florida is one of the most business-friendly states in the country — no state personal income tax, a large consumer market, and a straightforward registration process. Over 5 million new businesses are formed nationwide each year, and Florida consistently ranks among the top states for new business applications.
This guide walks you through every step to legally start a business in Florida, from choosing your structure to getting the licenses and tax registrations you need. We’ve compiled requirements from Sunbiz.org, the Florida Department of Revenue, DBPR, and county-level agencies so you don’t have to piece it together yourself.
How to Start a Business in Florida (Step by Step)
Step 1: Choose Your Business Structure
Your business structure determines your personal liability, tax treatment, and paperwork requirements. The most common options in Florida:
- Sole Proprietorship — Simplest to start, but you’re personally liable for all debts. No state filing required (just a fictitious name registration if using a DBA).
- LLC (Limited Liability Company) — Most popular choice. Protects personal assets, flexible tax treatment, and relatively simple to maintain. 85% of all new entity formations are LLCs.
- Corporation (S-Corp or C-Corp) — More formal structure with shareholders, directors, and officers. Better for businesses seeking investors or planning to go public.
- Partnership — For businesses with two or more owners. Can be a general partnership (GP) or limited partnership (LP).
For most small businesses, an LLC is the right choice. It gives you liability protection without the complexity of a corporation.
Step 2: Register Your Business with the State
LLC Formation via Sunbiz.org
Florida business entities are registered through the Florida Division of Corporations at Sunbiz.org.
| Item | Cost |
|---|---|
| Articles of Organization filing fee | $100.00 |
| Registered Agent designation fee | $25.00 |
| Total to form a Florida LLC | $125.00 |
| Annual Report (due by May 1 each year) | $138.75 |
| Late Annual Report (after May 1) | $538.75 |
How to file:
- Go to the Sunbiz LLC e-filing page
- Choose a business name that includes “LLC,” “L.L.C.,” or “Limited Liability Company” — it must be distinguishable from existing entity names on file
- Designate a Florida Registered Agent with a physical street address in Florida (P.O. boxes are not accepted)
- Pay by credit card — processing takes approximately 3–5 business days
- You’ll receive email confirmation upon submission
Fictitious Name (DBA): If you plan to operate under a name different from your LLC’s legal name, you’ll need to file a fictitious name registration ($50, valid for 5 years). This also requires publishing a notice of intent in a local newspaper.
Federal EIN (Employer Identification Number)
After forming your LLC, apply for a free EIN from the IRS at IRS.gov. You’ll receive it immediately when applying online. You need an EIN to open a business bank account, hire employees, and file taxes.
Important: Register your LLC with the state before applying for an EIN, since the IRS application requires your legal entity name.
Step 3: Get Required Licenses & Permits
County Business Tax Receipt
Florida doesn’t have a single statewide “business license.” Instead, most counties and municipalities require a Local Business Tax Receipt (formerly called an occupational license). This is your primary local business license.
- Who needs one: Any person or business engaging in a business, profession, or occupation within a Florida county
- Where to get it: Your county Tax Collector’s office
- Cost: Typically $25–$200, depending on your county and business type
- Dual requirement: If your business is within city limits, you may need both a county and a city business tax receipt
- Renewal: Annual, typically due by October 1
- Display: Must be prominently displayed at your place of business
Contact your county’s Tax Collector office directly for fees and categories, as they vary by jurisdiction.
DBPR License (If Required for Your Industry)
The Florida Department of Business and Professional Regulation (DBPR) licenses over 1.6 million businesses and professionals in Florida. You need a DBPR license if your business falls into a regulated category, including:
- Construction contractors
- Cosmetologists, barbers, and nail technicians
- Real estate agents, brokers, and appraisers
- Restaurants and food service establishments
- Hotels, motels, and lodging
- Electrical and alarm contractors
- CPAs and architects
- Community association managers
- Home inspectors
Check the full list of DBPR-regulated professions to see if your business type requires a license. Many people are surprised to learn that all restaurants and food service establishments and all hotels/lodging need DBPR licensing.
Step 4: Register for State Taxes
Florida Sales Tax
If your business sells taxable goods or services, you must register as a sales and use tax dealer before beginning operations.
- State sales tax rate: 6%
- County discretionary surtax: An additional 0.5%–2.5% depending on your county (applied to the first $5,000 per taxable transaction)
- Combined rates: Up to approximately 8.5% in some counties
- Registration: Free online at Florida Department of Revenue, or $5 per location via paper Form DR-1
After registration, the state mails you a Certificate of Registration, Annual Resale Certificate, and New Dealer Guide. The Certificate must be displayed at your business location.
Florida Reemployment Tax (If Hiring Employees)
If you plan to hire employees, you must register for Reemployment Tax (Florida’s version of unemployment tax) if either condition applies:
- You paid $1,500+ in total wages in any calendar quarter, OR
- You had one or more employees for at least part of a day during 20+ different weeks in a calendar year
New employers pay a rate of 2.7% on the first $7,000 of wages per employee. After 10 quarters, the rate adjusts based on your claims experience (range: 0.1%–5.4%).
Register through Florida Department of Revenue using Form DR-1.
Step 5: Get Business Insurance
Insurance requirements depend on your business type and whether you have employees:
Workers’ Compensation
| Industry | When Required |
|---|---|
| Construction | 1 or more employees (including owners) |
| Non-Construction | 4 or more employees (including corporate officers and LLC members) |
| Agricultural | 6 regular employees or 12 seasonal employees |
Learn more at the Florida Division of Workers’ Compensation.
General Liability Insurance
While not always legally mandated, general liability insurance is practically essential for most businesses. It protects against claims of bodily injury, property damage, and advertising injury. Many clients, landlords, and government contracts require proof of coverage.
Florida Business Guides by Industry
Every industry has different licensing, permit, and insurance requirements. Choose your business type for a detailed breakdown of everything you need in Florida:
- How to Start a Cleaning Service in Florida — Permits, insurance, OSHA requirements, and cost breakdown
- How to Start a Food Truck in Florida — DBPR MFDV license, health permits, fire safety, and commissary rules
- How to Start a Daycare in Florida — DCF licensing, background screening, training, and facility requirements
- How to Start an HVAC Business in Florida — Contractor license, EPA certification, bonding, and insurance
- How to Start a Hair Salon in Florida — DBPR salon license, cosmetology requirements, and sanitation rules
- How to Start a Landscaping Business in Florida — GI-BMP certification, pesticide licensing, and workers comp rules
- How to Start a Private Investigation Business in Florida — FDACS licensing, Class C and Class A requirements, firearms permits, and costs
Florida Business Resources & Official Links
| Resource | What It’s For |
|---|---|
| Sunbiz.org (FL Division of Corporations) | LLC/Corp formation, annual reports, name searches |
| Sunbiz LLC E-Filing | File Articles of Organization online |
| Florida Department of Revenue | Sales tax, reemployment tax, tax registration |
| FL DOR Online Tax Registration | Register to collect sales tax (free) |
| DBPR (MyFloridaLicense) | Professional and business licensing |
| FL Workers’ Compensation | Coverage requirements and exemptions |
| IRS EIN Application | Free federal tax ID number |
| FL New Hire Reporting | Report new employees within 20 days |
Frequently Asked Questions
How much does it cost to start an LLC in Florida?
The total cost to file Articles of Organization with the Florida Division of Corporations is $125 ($100 filing fee + $25 registered agent designation fee). After formation, you’ll pay $138.75 per year for the required Annual Report.
Does Florida require a general business license?
Florida does not have a single statewide business license. Instead, most counties and cities require a Local Business Tax Receipt (typically $25–$200). Some industries also require a license from the DBPR (Department of Business and Professional Regulation).
Does Florida have a state income tax?
No. Florida has no state personal income tax. Businesses structured as LLCs, sole proprietorships, and S-Corps pass income through to the owner’s federal return. C-Corporations pay a Florida corporate income tax of 5.5% on income over $50,000.
Do I need to collect sales tax in Florida?
If you sell taxable goods or services, yes. Florida’s state sales tax rate is 6%, plus a county discretionary surtax of 0.5%–2.5%. You must register with the Florida Department of Revenue before you begin collecting.
When is the Florida LLC Annual Report due?
Annual Reports are due by May 1 each year. The filing fee is $138.75. If you miss the deadline, a $400 late fee is added. Failure to file by the third Friday in September results in administrative dissolution of your LLC.
Do I need workers’ compensation insurance in Florida?
It depends on your industry and number of employees. Construction businesses need workers’ comp with just 1 employee. Non-construction businesses need it at 4 or more employees. Agricultural operations have different thresholds.