Florida offers four main business structures: sole proprietorship, LLC, S-Corp, and C-Corp. Most small businesses choose an LLC because it provides liability protection while avoiding double taxation — you can form one through the Florida Division of Corporations (Sunbiz.org) for $125. Your choice affects taxes, paperwork, and personal liability, so understand the tradeoffs before filing.

If you operate under a name different from your legal name, you must file a Fictitious Name (DBA) registration with the Florida Division of Corporations for $50. This registration must be renewed every five years and published in a local newspaper for four consecutive weeks. Without this, you cannot open a business bank account or sign contracts under your trade name.

Every Florida business with employees — and most LLCs — needs a Federal Employer Identification Number (EIN) from the IRS, which you can get free at IRS.gov in minutes. You also need to register with the Florida Department of Revenue if you plan to collect sales tax or hire employees. Skipping either step can result in penalties and delays when opening bank accounts.

Florida LLCs and corporations must file an Annual Report with the Division of Corporations every year between January 1 and May 1 — the filing fee is $138.75 for LLCs. Missing this deadline triggers a $400 late fee, and continued non-compliance leads to administrative dissolution of your business. Set a calendar reminder for January 1 each year.