Starting a Business in Florida: Licenses, Permits & Requirements (2026)

Last updated: April 24, 2026

Four things set Florida apart when you are starting a business here. First, Florida has no state personal income tax – pass-through income from your LLC or S-Corp never hits a Florida income tax return (C-Corps pay 5.5% on income over $50,000, but that is a separate structure). Second, Florida’s long-standing sales tax on commercial rent was repealed effective October 1, 2025 under HB 7031 – Florida was the only state in the country that taxed commercial leases, so this 2% (plus local surtax) line item is gone from every business’s rent. Third, Florida’s workers’ compensation threshold is 1 employee for construction – and Florida defines “construction” broadly enough to capture landscaping, pressure washing, and painting work. Fourth, Florida’s minimum wage is constitutionally phased toward $15.00 on September 30, 2026, up from $14.00 today – a hiring cost trajectory most other states do not share.

This guide compiles the specific Florida agency requirements, Sunbiz fees, DBPR license structures, county-level variations, and 2025-2026 legislative changes that apply to starting a business in Florida. The source agencies referenced are the Florida Division of Corporations (Sunbiz), Florida Department of Revenue (DOR), Department of Business and Professional Regulation (DBPR), Department of Children and Families (DCF), Department of Agriculture and Consumer Services (FDACS), Florida Division of Workers’ Compensation (DWC), and county Tax Collectors.

Florida Business Requirements at a Glance

Requirement	Agency / Portal	Cost	Timeline
LLC Articles of Organization	Sunbiz.org (FL Division of Corporations)	$125 total ($100 filing + $25 RA)	3-5 business days online
Florida Annual Report (LLC)	Sunbiz.org	$138.75 by May 1; $538.75 after May 1	Due annually May 1 or admin dissolution
Fictitious Name (DBA) registration	Sunbiz.org	$50, valid 5 years (newspaper ad required)	Expires Dec 31 of 5th year
Federal EIN	IRS.gov	Free	Immediate online
Sales Tax Registration (if selling taxable goods/services)	FL Department of Revenue	Free online; $5 paper Form DR-1	Before first taxable sale
Reemployment Tax Registration (if hiring)	FL Department of Revenue (Form DR-1)	No registration fee; 2.7% new employer rate on first $7,000 wages	When you cross $1,500/quarter or 20-week threshold
Local Business Tax Receipt (county)	County Tax Collector (all 67 FL counties)	$25-$200 typical; varies by county/category	Annual, typically due Sep 30
Local Business Tax Receipt (city, if inside city limits)	Municipal business tax office	Separate from county; often $30-$150	Annual
Workers’ Compensation Insurance	Private insurer or FL Division of Workers’ Compensation	Varies by payroll and industry class	Construction: 1+ employees; Non-construction: 4+; Agricultural: 6 regular/12 seasonal
DBPR Professional License (if regulated industry)	MyFloridaLicense.com (DBPR)	Varies by license type	Before operating in regulated profession

How to Start a Business in Florida (Step by Step)

Step 1: Form Your Florida LLC on Sunbiz

File Articles of Organization online through the Sunbiz LLC e-filing portal. Florida’s business entity registry is run by the Division of Corporations under the Department of State, branded as Sunbiz. Total cost to form: $125 ($100 filing fee + $25 registered agent designation). Online processing takes approximately 3-5 business days.

Your LLC name must include “LLC,” “L.L.C.,” or “Limited Liability Company” and must be distinguishable from existing entity names in the Sunbiz database. Run a name search at search.sunbiz.org before filing.

Registered agent: Your LLC must have a registered agent with a physical street address in Florida (P.O. boxes are not accepted). You may serve as your own registered agent if you have a Florida physical address, or hire a third-party service.

Florida Annual Report (the dissolution trap): Every Florida LLC and corporation must file an Annual Report with Sunbiz by May 1 each year. Fee: $138.75. Missing the May 1 deadline triggers a $400 late fee (total $538.75). If you fail to file by the third Friday in September, the state administratively dissolves your LLC – the entity ceases to exist, personal liability protection evaporates, and reinstatement costs another $100 plus every missed annual report. Set a calendar alert for early April.

Fictitious Name (DBA): If you operate under a name different from your LLC’s legal name, file a Fictitious Name registration for $50. Florida requires that the name be advertised at least once in a newspaper in the county of your principal place of business before filing. The registration expires December 31 of the fifth year and must be renewed.

Get your free federal EIN immediately at IRS.gov – you will need it before registering for Florida sales tax, opening a business bank account, or hiring employees.

Step 2: Register for Florida Sales Tax and Reemployment Tax

Florida Sales Tax

If you sell taxable goods or services, you must register as a sales and use tax dealer before your first sale. Registration is free online at the Florida Department of Revenue tax registration portal, or $5 per location via paper Form DR-1.

• State sales tax rate: 6%.
• County discretionary surtax: 0% to 1.5% depending on county, applied only to the first $5,000 of tangible personal property in a single transaction (the $5,000 cap does NOT apply to admissions, transient rentals under 6 months, services, prepaid calling arrangements, or motor vehicle/boat/aircraft parking/storage).
• Combined rates: Approximately 6%-7.5% depending on county. Verify county rates annually via Florida DOR Form DR-15DSS (published each November).
• Certificate display: After registering, Florida mails you a Certificate of Registration, Annual Resale Certificate, and New Dealer Guide. The Certificate must be displayed at your business location.

Service taxability varies by type. Florida sales tax rules turn on industry – commercial cleaning services are taxable but residential house cleaning is not, salon services are exempt but retail products are taxed, HVAC contractors pay sales tax on materials but labor on real property improvements is not charged to the customer. Verify taxability for your specific service before pricing.

Commercial Rent Tax – REPEALED October 1, 2025

For decades, Florida was the only state in the country that imposed sales tax on commercial rent. That ended on October 1, 2025, when HB 7031 (signed by Governor DeSantis on June 30, 2025) repealed both the 2% state sales tax and the local discretionary surtax on commercial leases. Office space, retail units, and warehouses are all covered by the repeal. Equipment rentals, parking/docking/storage fees, and short-term residential rentals (under 6 months) still carry Florida sales tax.

If you signed a commercial lease before October 2025, rent for periods on or after October 1 is no longer taxed – even if you prepaid. Confirm with your landlord that they removed the tax line from your monthly bill. For most small business tenants, this is a meaningful savings.

Florida Reemployment Tax

Florida uses the term “Reemployment Tax” for what most states call unemployment insurance (UI) – you will not find “SUTA” or “SUI” on Florida DOR forms. If you plan to hire employees, you must register 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.

2026 rates: New employers pay 2.7% on the first $7,000 of wages per employee per year (approximately $189 per employee). After 10 quarters, your rate is recalculated based on claims experience. The 2026 experienced-employer range is 0.1% minimum to 5.4% maximum.

Register on the same Form DR-1 you used for sales tax. Reemployment Tax is employer-paid only – you cannot deduct it from employee wages.

Step 3: Get Your Local Business Tax Receipt

Florida does not have a statewide general business license. Instead, most of Florida’s 67 counties and many municipalities require a Local Business Tax Receipt (formerly called an Occupational License before Florida renamed it in 2007). This is your primary local business authorization.

• 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. Find yours via the Florida Tax Collectors Association directory.
• Cost: Typically $25-$200 depending on county and business category.
• Dual requirement: If your business sits inside city limits, you likely need both a county and city Local Business Tax Receipt. Service businesses (cleaners, landscapers, contractors) working across multiple cities may need receipts in each jurisdiction.
• Renewal: Annual, typically due September 30; operating season runs October 1 to September 30.
• Display: Must be conspicuously displayed at your place of business.

Major county contacts: Miami-Dade Tax Collector, Orange County (Orlando), Hillsborough County (Tampa), Duval County (Jacksonville), Leon County (Tallahassee).

Step 4: Get Workers’ Compensation Insurance

Florida’s workers’ compensation thresholds are industry-dependent – the “4 employees” rule people reference only applies to non-construction employers:

Industry	Florida Workers’ Comp Trigger
Construction	1 or more employees (including corporate officers and LLC members)
Non-Construction	4 or more employees (including corporate officers and LLC members)
Agricultural	6 regular employees OR 12 seasonal workers (30+ days/season or 45+ days/year)

The construction classification trap. Florida defines “construction” broadly enough to capture many service trades: landscaping, pressure washing, painting, pool maintenance, and some cleaning work that involves physical property alteration. If your industry could be classified as construction under Florida Division of Workers’ Compensation rules, assume you need coverage from your first hire. Misclassification penalties include stop-work orders and premium back-assessments.

Where to get coverage: Any Florida-licensed workers’ comp carrier. Florida does not have a state-fund equivalent to Colorado’s Pinnacol or Ohio’s BWC – the market is entirely private-insurer. The Florida Workers’ Compensation Joint Underwriting Association (FWCJUA) is the state’s residual market for employers who cannot find coverage elsewhere.

Corporate officer/LLC member exemption: Non-construction corporate officers and LLC members can file a Notice of Election to Be Exempt ($50, valid 2 years) to exclude themselves from the coverage requirement. Construction sector exemptions are capped at 3 officers/members per entity and require additional filings through myfloridacfo.com/division/wc.

Step 5: Get Industry-Specific State Licenses

DBPR Licenses (Most Regulated Professions)

The Florida Department of Business and Professional Regulation (DBPR) licenses over 1.6 million businesses and professionals. If your profession requires a state license, DBPR is usually the issuing agency. Key categories:

• Construction contractors – HVAC, electrical, plumbing, general contractors (Construction Industry Licensing Board)
• Cosmetologists, barbers, nail technicians, estheticians (Board of Cosmetology / Barbers’ Board)
• Restaurants and all food service (Division of Hotels and Restaurants)
• Hotels, motels, short-term lodging (Division of Hotels and Restaurants)
• Real estate agents, brokers, appraisers
• CPAs, architects, interior designers, engineers (Division of Certified Public Accounting / related boards)
• Home inspectors, mold assessors, mold remediators
• Community association managers

All DBPR license applications, renewals, and status checks go through MyFloridaLicense.com.

Non-DBPR Industry Licensing

• Daycare / child care: Florida Department of Children and Families (DCF) – not DBPR. Five counties (Broward, Hillsborough, Palm Beach, Pinellas, Sarasota) administer their own child care licensing under F.S. 402.306.
• Food trucks (mobile food dispensing vehicles): DBPR Division of Hotels and Restaurants issues the MFDV license ($50 app + $347 annual) for food trucks that cook or prepare food. FDACS regulates prepackaged/raw food sellers only.
• Private investigators: FDACS Division of Licensing – Class CC intern license, Class C investigator, Class A agency, Class MA agency manager. Florida has one of the strictest PI licensing regimes in the country.
• Landscaping pesticide applicators: FDACS Bureau of Entomology and Pest Control for commercial applicator licenses. All landscape professionals applying fertilizer must also hold a GI-BMP certification per F.S. 482.1562.
• Alcohol/beer/wine: DBPR Division of Alcoholic Beverages and Tobacco (AB&T).

Florida’s Unique Tax and Payroll Environment

Four structural features of Florida’s tax and payroll framework make it different from most other states – worth modeling into your financial plan from day one.

1. No state personal income tax. This is the single biggest structural advantage Florida offers small business owners. LLC pass-through income, sole proprietor earnings, and S-Corp distributions never hit a Florida income tax return. C-Corporations pay 5.5% on Florida net income over $50,000 – but for most small businesses organized as LLCs, that does not apply. States with flat or graduated income taxes (Georgia 5.19%, North Carolina 4.25%, California up to 13.3%) take a noticeably larger bite out of owner income. Factor the tax-free treatment into location decisions if you are comparing states.

2. Commercial rent tax repealed October 1, 2025. Until October 2025, Florida was the only state in the U.S. that imposed sales tax on commercial leases. At 2% state plus local surtax, a Miami retail tenant paying $8,000/month in rent was adding $1,920+ in annual sales tax. HB 7031 (effective October 1, 2025) removed this entirely for office space, retail, and warehouse rentals. If you signed a lease before October 2025, verify your landlord adjusted your rent-plus-tax line on or after October 1. For new leases, there is no longer a tax column.

3. Reemployment Tax is employer-only at $7,000 wage base. Florida’s $7,000 taxable wage base is among the lowest in the country (some states tax up to $50,000+ per employee). Combined with the 0.1%-5.4% rate range, this keeps Florida’s total payroll tax burden lower than most states with paid family leave programs. There is no Florida state paid family leave equivalent to California’s SDI, Colorado’s FAMLI, or Washington’s PFML – another structural cost advantage versus those states.

4. Minimum wage trajectory to $15 on September 30, 2026. Florida’s constitutional amendment (passed 2020) phases the state minimum wage up by $1 each September 30 until reaching $15.00 on September 30, 2026. Current rate as of September 30, 2025: $14.00. Tipped minimum: $10.98 now, rising to $11.98 on September 30, 2026. After 2026, the rate indexes to inflation. If you hire at or near the minimum, budget for the $1 jump every September and for automatic inflation adjustments after that.

Florida Market Context: Tourism, Retirees, Hurricane Rebuilds

Florida’s economy has several distinct structural drivers that shape small business demand differently from most states:

• Population growth and retirement migration. Florida has been the fastest- or second-fastest-growing state in the U.S. for most of the past decade. Net domestic migration adds roughly 300,000-400,000 residents per year. Home-services demand (cleaning, landscaping, HVAC, handyman) runs chronically ahead of supply in high-growth counties like Sumter, Polk, and Lake.
• Tourism-driven seasonal demand. Orlando theme parks, Miami Beach, Key West, and Gulf Coast beaches create distinct seasonal curves. Food trucks and cleaning services in tourist corridors see demand peaks that do not match standard small-business seasonality patterns. Vacation rentals (short-term) support a large supporting services economy.
• Major metros with distinct markets. Miami (international trade, finance, Latin American gateway), Orlando (tourism, healthcare, defense), Tampa (finance, healthcare, port), Jacksonville (logistics, insurance, Navy), Tallahassee (state government, universities). Each has its own Local Business Tax Receipt structure, not a statewide business license.
• Hurricane-driven construction demand. Atlantic and Gulf hurricane seasons create recurring rebuild cycles. HVAC, landscaping, pressure washing, and general contracting work is driven by storm damage in ways that states outside the hurricane belt do not experience. Florida Building Code wind-resistance requirements (High-Velocity Hurricane Zones in Miami-Dade and Broward) also shape HVAC installation standards.
• Senior services economy. Florida’s 21%+ 65+ population share (second only to Maine) sustains demand for home-care, cleaning, transportation, and lower-mobility-friendly services. The Villages (Sumter County) and coastal retirement communities are distinct small-business markets.

Florida Business Guides by Industry

Every industry has different licensing, permit, and insurance requirements in Florida. Select your business type:

• How to Start a Cleaning Service in Florida – sales tax rules (commercial taxable, residential exempt), construction classification for pressure washing, Local Business Tax Receipts across counties
• How to Start a Food Truck in Florida – DBPR MFDV license ($347/year), F.S. 509.102 local preemption, self-sufficient commissary exemption, fire suppression under NFPA 96
• How to Start a Daycare in Florida – DCF licensing under F.S. 402, five counties (Broward, Hillsborough, Palm Beach, Pinellas, Sarasota) self-license, Clearinghouse background screening, VPK and School Readiness provider status
• How to Start an HVAC Business in Florida – DBPR Class A/B mechanical contractor, Florida Building Code wind requirements, EPA 608, county competency cards
• How to Start a Hair Salon in Florida – DBPR Board of Cosmetology license (1,200 hours), salon establishment registration, booth rental rules
• How to Start a Landscaping Business in Florida – FDACS pesticide applicator license, GI-BMP certification (F.S. 482.1562), local fertilizer ordinances in Pinellas and Sarasota
• How to Start a Private Investigation Business in Florida – FDACS Division of Licensing Class CC intern / Class C individual / Class A agency / Class MA manager / Class G firearm under F.S. 493, 2-year experience requirement

Key Florida Business Resources

Resource	What It Covers
Sunbiz.org (FL Division of Corporations)	LLC/Corp formation, annual reports, fictitious names, name searches
Sunbiz LLC E-Filing	File Articles of Organization online
Florida Department of Revenue	Sales tax, reemployment tax, corporate income tax
FL DOR Online Tax Registration	Register to collect sales tax / reemployment tax (free)
DR-15DSS (current year)	Annual county discretionary surtax rate tables
DBPR (MyFloridaLicense)	Professional and business licensing (HVAC, salon, restaurant, lodging, real estate)
FL Division of Workers’ Compensation	Coverage requirements, exemptions, stop-work orders
FL Department of Children and Families	Daycare and child-care licensing
FDACS	Food truck MFDV, pest control, private investigator, firearms, agriculture
Florida Building Commission	Florida Building Code (wind/hurricane compliance)
FL New Hire Reporting	Report new employees within 20 days of hire

Frequently Asked Questions

How much does it cost to start an LLC in Florida?

The total cost to file Articles of Organization on Sunbiz is $125 ($100 filing fee + $25 registered agent designation). After formation, your annual cost is $138.75 for the Florida Annual Report due by May 1. Miss that deadline and the late fee makes it $538.75; miss the third Friday in September and Florida administratively dissolves your LLC. Optional costs: $50 for a Fictitious Name (DBA) registration valid 5 years, and any registered agent service if you use a third-party provider (typically $100-$200/year).

Does Florida have a state income tax?

No. Florida has no state personal income tax. LLCs, sole proprietorships, partnerships, and S-Corps are pass-through entities – income flows to the owner’s federal return only. C-Corporations pay Florida corporate income tax at 5.5% on net income over $50,000, but most small businesses organized as LLCs never encounter this. The absence of state income tax is Florida’s most significant structural advantage for small business owners.

Is there still a sales tax on commercial rent in Florida?

No – as of October 1, 2025. House Bill 7031, signed into law by Governor DeSantis on June 30, 2025, repealed both the 2% state sales tax and the county local option surtax on commercial rent. Florida was the only state in the country that imposed this tax. Office space, retail units, and warehouse rent are all covered by the repeal. Equipment rentals, parking/docking/storage fees, and short-term residential rentals (under 6 months) remain subject to Florida sales tax.

Does Florida require a general business license?

Florida has no statewide general business license. Instead, most counties require a Local Business Tax Receipt (formerly Occupational License) from the county Tax Collector, and many cities require a separate city receipt if your business sits inside city limits. Additionally, DBPR licenses many regulated professions (HVAC, cosmetology, restaurant, hotel, real estate), DCF licenses child care, and FDACS licenses food trucks, private investigators, and pest control applicators.

When does my Florida LLC need workers’ compensation?

Thresholds depend on industry. Construction businesses need workers’ comp at 1 or more employees (including corporate officers and LLC members). Non-construction businesses need it at 4 or more. Agricultural operations need it at 6 regular employees or 12 seasonal workers (30+ days/season or 45+ days/year). Florida defines construction broadly – landscaping, pressure washing, and painting can all fall under construction classifications, so service trades should assume the 1-employee threshold applies unless verified otherwise with the Division of Workers’ Compensation.

What is Florida’s minimum wage in 2026?

Florida’s minimum wage is $14.00/hour as of September 30, 2025, and rises to $15.00/hour on September 30, 2026 under the 2020 constitutional amendment. The tipped minimum is $10.98 now and rises to $11.98 on September 30, 2026. After 2026, the rate indexes to inflation. Florida preempts local minimum wages, so there is no “Miami minimum” or “Orlando minimum” higher than the state rate.