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How to Establish an LLC in Florida: What nuances must be considered?

Publication date/update: 05.06.2024
Many entrepreneurs aspire to launch businesses in foreign lands, contemplating various nations, including the United States. To ensure robust sales and reputation, prudent decisions are imperative. In this article, we meticulously examine the process of registering a business in one of the most sought-after states - Florida. Why choose Florida, specifically? This state boasts a high level of education among its residents, skilled professionals, and access to innovative technologies. Situated within the United States, Florida provides foreign entrepreneurs with convenient and advantageous conditions for the establishment and enhancement of their businesses.

What you need to know about LLC

LLC – an equivalent of the Russian Limited Liability Company (LLC). It represents a relatively novel business structure in the United States, first introduced in the state of Wyoming in 1977. It is neither a partnership nor a corporation but rather a distinct type of business entity that offers an alternative to these two conventional forms. LLC combines the corporate benefits of an LLC with the advantages of pass-through taxation. LLCs are more flexible and require fewer ongoing documents. Many prominent U.S. companies (such as the Amazon marketplace or the automotive giant Chrysler) are LLCs.

What facts about LLC should you know?
  • Owners of an LLC are members. They can be individuals, corporations, or other LLCs. Typically, LLCs have a large number of members, as the legislation does not always impose restrictions. Members in an LLC are analogous to partners in a partnership or shareholders in a corporation. If an LLC opts for manager management, a member resembles a shareholder; if an LLC chooses not to use managers, members will closely resemble partners.
  • An LLC with more than one individual or legal entity is an LLC with multiple members. All states permit single-member LLCs. Such companies are taxed as sole proprietors. Multi-member LLCs are taxed by default as partnerships.
What are the advantages of opening an LLC?
  • Personal liability protection. The personal assets of each member are shielded from business creditors. The liability of an LLC member is limited to the amount of money invested in the LLC. Thus, LLC members are offered the same limited liability protection as corporation shareholders.
  • Tax simplification. LLCs operate under pass-through taxation, meaning that company income is taxed only once. They are primarily treated as partnership, sole proprietorship, or S-Corporation income.
  • Easy sale. LLC interests can be easily sold to third parties without closing the business. Selling interests in a partnership, for example, requires more time and effort. The owner must individually transfer assets, business licenses, bank accounts, permits, and other legal documentation. Transferring ownership in S-Corporations is also burdened with many restrictions.
  • No ownership restrictions. The legislation does not impose restrictions on LLC ownership, including the number and types of owners. In comparison, S-Corporations cannot have more than a hundred shareholders or non-resident shareholders.
  • Easier to attract investments. LLCs offer numerous methods for capital infusion. This includes attracting new members, selling membership interests, or creating a new class of members with different voting or profit distribution characteristics.
  • Greater consumer trust. Such a business enjoys greater legitimacy and trust when dealing with other companies, banks, and counterparties. LLCs are always recognized as legitimate companies, not sole proprietorships.
  • Flexible company management and clear ownership structure. Like general partnership relationships, LLCs can freely establish any organizational structure agreed upon by members. Thus, the profit interests can be separated from the voting shares. This gives owners maximum flexibility to divide or combine investor interests in the company and individuals actually working on a day-to-day basis.
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In what "pluses" the registration of a firm in Florida

When registering a company in Florida, we advise thoroughly researching the market. The state is popular among novice entrepreneurs for several reasons:
  • There are support programs for starting and operating entrepreneurs.
  • Businesses in the IT sector also receive substantial grants under a separate program.
  • Low corporate tax rate — 5.5%. This allows for a significant reduction in the tax burden, as taxes within the United States are usually higher.
  • The state is open to investments from different states.
  • The largest banks and financial companies operate within the state. This allows for more efficient financial management.
  • Businesses can be developed in various industries, including finance, tourism, trade, and others. Any form can be chosen to maximize profits.
It is important to note that in Florida, employers do not have problems attracting new employees. Among potential candidates, it will be easy to find someone with a good education and experience in the profession. Unemployment in Florida remains low.

What documents need to be collected?

To establish a firm in Florida, several requirements must be met, including conditions for collecting and submitting documents. Specifically, it is important to note that:
  • The firm must have a unique name, mentioned in the documentation. The name should not be misleading and must reflect the scope and essence of the business. It must be distinctive.
  • The company's articles of organization and memorandum must be notarized. These documents contain information about the business owners, their authorities, and positions.
  • It is necessary to submit validating documentation (e.g., a passport) along with a project description, business plan, and financial projections.
  • It is essential to disclose the volume and value of the issued shares. These details are pivotal in determining the ownership structure and organizational framework.

Order of company registration in the state of Florida

If you wish to register a business in Florida, several steps need to be taken.
  • Reserve a unique name for the firm by submitting a request to the U.S. Department of State in Florida.
  • Submit an application for company registration.
  • Obtain a certification document of incorporation from the regulator upon approval of the application.
  • Acquire an Employer Identification Number (EIN), similar to our Tax Identification Number (TIN), by filling out an application on the American Tax Service website.
  • Open an account at any bank, providing the necessary documentation and mentioning the already obtained EIN. This usually requires a personal visit to the bank branch, although remote options exist.
  • Obtain a state-issued license if necessary, considering activities in agriculture, alcohol production, firearms, transportation, logistics, or mineral extraction. Aviation and nuclear energy companies, as well as firms operating in the telecommunications sector, also require licenses.
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Taxation and Payment of Taxes

Companies pay taxes to the state and federal budgets at rates of 5.5% and 21%, respectively, based on profits. The amount is calculated based on various deductions, including initial expenses, travel and transportation costs, fees for banking operations, legal and accounting activities, insurance, rent, and overhead expenses.
  • Initial expenditures
  • Travel and transportation expenses
  • Fees for banking transactions, legal and accounting services
  • Insurance and rental costs
  • Overhead expenses
It's worth noting that obtaining an EIN is mandatory for business operations — a unique nine-digit combination stored in a nationwide database. It is necessary for:
  • Submitting annual declarations
  • Paying taxes
  • Opening bank accounts
  • Employing personnel
It is important to open a bank account that will facilitate the operation of the company, including depositing and withdrawing funds. To obtain it, it is necessary to visit the selected US bank in person. However, this is difficult with remote registration. To avoid visiting the bank branch, it is necessary to turn to online services aimed at remote interaction with clients. Among them are verified platforms.


Among the various states, Florida is popular due to its tax incentives and low tax rates. Before establishing an LLC in the United States, it's essential to navigate through several procedures. Providing accurate information and selecting the appropriate organizational structure are crucial. Registering a business in the U.S. enables audience expansion, reputation enhancement, and expense optimization. Leveraging technology and the absence of unemployment, developing one's project can be achieved with minimal difficulties.
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