It’s exciting to launch a business. This Launch Guide on how to start a business in the US offers to accompany you as you complete the necessary government papers to turn your entrepreneurial flair into a legitimate company.
Overview
This guide is about the government paperwork required to start a business. It will walk you through the process of registering your company with the state and federal governments. For new business owners, the maze of incorporation, licensing, and taxation can be daunting. But don’t worry, we will walk you through the process step by step.
When you want to start your business in the US, you should know that you need to do the following:
- File your business name
- Form an LLC or corporation (maybe)
- Get a federal tax ID from the IRS
- Get state and local tax IDs
- Get business licenses (maybe)
- Set up your business records
- Open a business bank account, and probably some other things too
But which documents do you submit, and to which agencies? And in what order?
This guide’s core message is the response to these questions. We will specifically outline the papers that must be submitted to each agency along with the proper filing sequence. Before you begin filing, we will also provide you with an estimate of the entire cost and the overall timeline for all agencies.
State-Specific Instructions on how to start a business in the US
Did you know that each state has its own requirements for establishing and operating a legal LLC, corporation, or other types of business structure?
Which state you choose to launch your business in will affect a vast number of regulations, procedures, and forms.
How much will it cost to get started?
Your state will determine this, ranging from $0 to more than $1000.
How long will it take to start doing business in the US?
It depends on your state. From immediately online to several months.
Does my company require a certain number of shareholders, directors, officials, etc.? Do they fall under any restrictions as to who they can be?
Again, it depends on your state.
Do I need a business license?
It depends on your industry, state, county and even city
Will there be annual fees after I start a business in the US?
Usually yes. The amount depends on your state and business. Some states charge as much as $800 across your annual report and minimum business tax.
This guide provides you with accurate responses to your pressing business inquiries, such as “what’s required,” “how much,” “how long,” and “how to.”
Keeping Up with Government Changes
State legislatures adopt updates to their company codes every year. To implement these changes, government organizations revise their forms, procedures, and fees. Additionally, many organizations are transitioning from paper forms to online ones.
All right, Time to Dive In!
You will see the necessary documents, time, cost, and step-by-step setup instructions:
Staying Compliant
Prepare yourself for the ongoing maintenance of running a compliant business entity if you thought the registration of a business was a wild ride through government paperwork.
Expand to a New State
Business expansion into new states typically requires obtaining a certificate of authority to operate in that state. Foreign qualification is the term for this procedure. Without having to form a new business structure, foreign qualification enables your company to lawfully pursue development prospects outside of your state.
Maintain a Registered Agent
The company appoints a registered agent to receive notice of lawsuit and official correspondence during the formation and overseas qualification processes. The state will not allow business filings without a registered agent. Most firms hire a commercial registered agent, like Bolder Launch, which offers a registered agent service through a network of offices in various or all states.
Register for Sales and Use Tax
Most physical commodities and some services are subject to sales tax; use tax is levied on out-of-state goods that were not subject to sales tax but will be used or consumed within the home state. In many states, using a consolidated tax registration form, businesses can register for sales and use taxes.
Register for Payroll Tax
When businesses employ full-time workers, payroll taxes are necessary. Employer withholding and unemployment taxes are typically included in payroll taxes. Currently, fewer than half of the states permit corporations to register for both taxes using the same application. And most states use a different organization to handle unemployment tax.
Apply for Industry Licenses
Boards devoted to regulating industry standards oversee regulating professions. The corporate entity itself, as well as some essential personnel, may need licenses. Only a few significant business kinds are subject to federal agency regulation, with state bodies overseeing most businesses.
Manage Annual Reports
Most commercial entities must submit recurring reports to each secretary of state with which they have an account. Periodic reports provide updated details on the company’s executives, directors, registered agents, and principal addresses. Most states require yearly report filing, but some also call for biannual reporting. State fees range, but often cost $50. To remain in “good standing” and prevent state penalties, keep track of these reports, and submit them on time.
See our guide on Annual Reports or let us do your annual report filing for you.
Step-By-Step Startup
Below is an overview of the paperwork, cost, and time to form each of the most popular business structures. Simply click on the link for your desired structure to view detailed step-by-step instructions.
- If you are unsure whether to form an LLC, corporation, or another business structure, contact us.
- If you want to start your business in a state other than Florida, click here.
| Structure | Paperwork | Cost | Time |
|---|---|---|---|
| Limited Liability Company in Florida | Form CR2E047: Articles of Organization for Florida limited Liability Company Operating Agreement IRS Form SS-4: Obtain an EIN Form DR-1: Florida Business Tax Application | Formation: $125 | Formation: 1-3 days online; 8-7 days by mail |
| Florida Corporation | Form CR2E010: Articles of Incorporation for Florida Profit Corporation Bylaws IRS Form SS-4: Obtain an EIN Form 2553: S-Corp Election, if desired Form DR-1: Florida Business Tax Application | Incorporation: $70 Form DR-1: $0 + $5 for sales tax registration (if applicable) | Incorporation: 1-3 days online; 8-17 days by mail |
| Florida Nonprofit | Form CR2E006: Florida Nonprofit Articles of Incorporation Bylaws IRS Form SS-4: Obtain an EIN IRS Form 1023: 501(c) Tax Exempt Application IRS Determination Letter Form DR-1: Florida Business Tax Application Form DR-5: Florida Application for Consumer’s Certificate of Exemption URS Charitable Registration, if applicable Form FDACS-10100: Solicitation of Contributions Registration Application, or Form FDACS-10110: Exempt Charitable Organizations/Sponsors Application. | Incorporation: $70 501(c): $275 or $600 IRS fee Florida sales tax license: $5, if applicable Florida Charitable registration: $10-$400 ($0 if exempt) | Incorporation: 1-3 days online; 8-17 days by mail. 501(c): 2 weeks to 3 months |
Top 5 Tips on Registering a Business in Florida
- Sunbiz is the name given by the Florida Department of State to its online filing platform. Both your annual reports and your formation paperwork must be submitted through Sunbiz.
- Online filing can reduce processing time. You will have to wait 8–17 days for a response if you file by mail. You will receive an answer if you file online in one to three days.
- Don’t forget to include a corporate suffix to your company name, such as “Corporation” or “LLC.” Florida only recognizes a select group of suffixes, which we shall go over later.
- In comparison to other states, Florida’s registration process for company tax accounts is rather straightforward. Florida offers new business owners a start-up kit with instructions and a streamlined state tax registration application (Form DR-1).
- Scams involving corporation filings in Florida should also be avoided. The Florida Department of State requires that you submit an annual report via Sunbiz.org. There’s a chance that you’ll get more notifications from phoney businesses trying to get involved in this filing procedure or offer you their services. The government has issued public alerts because of the numerous phone calls questioning if the messages are legitimate and the fact that they appear to be genuine.
What is Foreign Qualification?
To register your company with the secretary of state’s office of another state is referred to as “foreign qualification.” It permits your company to lawfully seek expansion opportunities outside of your state without setting up a new legal entity. It’s often the first phase of a company’s expansion into a new state.
The secretary of state will issue a “certificate of authority” or other documents once you meet the requirements for foreign nationals in a state. Following the secretary of state’s registration of the entity, you must manage tax registration, obtain state-level business licenses, and more.
Visit our 50-State Reference Chart to find the fees and processing times in every state.
When Foreign Qualification is Required
When an out-of-state entity conducts business in a state, the state typically requires international certification. The legal definition of doing business varies from state to state and frequently encompasses a wide range of activities. Common justifications for foreign corporations qualifying include:
- Hiring an employee who is a resident of a state other than the state of incorporation.
- Purchasing property or a building.
- Opening a new office or other facilities.
- Offering services, selling products, or bidding for a contract.
- Applying for a professional license, as licensing agencies generally require foreign qualifications.
When Foreign Qualification is Typically Not Required
While the standards for international qualification vary by state, the following situations typically do not:
- Isolated transactions and activities, which are usually less than 30 days.
- Secondary corporate activities, which include conducting internal affairs, maintaining corporate books or records, or evaluating business prospects in a state.
- Opening or maintaining a bank account.
- Wholesalers that have relationships with dealers in foreign states where the wholesaler has minimal involvement in the activities of its dealers.
- Engaging in a partnership or joint venture.
Steps to Foreign Qualify
Obtaining a good standing certificate from your home state is the first step in the overseas qualification procedure. Along with an application for a certificate of authority, you will deliver that document to the new jurisdiction. To receive legal documents on your behalf and maintain a physical location, you must select a registered agent.
Costs and Processing Times
The state and kind of entity determine the state fees and processing times. A business corporation must pay an average of $230 in state fees to be qualified, compared to $190 for a limited liability company (LLC). The typical charge for nonprofit corporations is $100.
States have very different processing times. Many jurisdictions have different levels of accelerated service, and most states have expedited choices. Even though some states take up to 5 weeks to process filings, those states typically provide expedited options that allow for processing in only 1-2 business days.
Appointing a registered agent
Your company or nonprofit is required by law to have a registered agent in Florida. On behalf of your company, the registered agent receives crucial legal communications including service of process (also known as a notice of litigation). Typically, your Florida registered agent must be present during all business hours and maintain an actual office in Florida. By selecting a dependable Florida registered agent, you may be certain that you’ll get important documents on time.
While filing documents to form or register your business in Florida, you may have come across the term “registered agent.” You may have also heard the terms “resident agent,” “statutory agent,” or “agent for service of process.” All these terms generally refer to the same thing.
Do I Need a Florida Registered Agent?
Yes, with very few exceptions. Most corporations and charitable organizations that are established or registered in Florida must always have a physical registered agent there. This entails keeping the Florida Department of State’s Division of Corporations informed of any changes to the agent’s contact information. It keeps your business in good standing and is referred to as “maintaining” a registered agent.
Appointing A Company
Using our professional registered agent service in Florida provides the following benefits:
- Fulfill the state requirement
- We provide a physical office in St. Petersburg to serve as your agent. This allows your business to meet the statutory obligation to appoint a registered agent in Florida.
- Privacy
- Using our registered agent service helps protect the privacy of your business.
- Avoid receiving a lawsuit in front of your clients and employees. We receive uniformed process servers, notice of lawsuit, and other deliveries discreetly at our offices.
- Our contact information (not yours) is listed publicly with the Florida Department of State – Division of Corporations.
- We keep your information confidential and do not give it out to inquirers unless we are legally required to do so.
- Enjoy flexible hours
- The registered agent is generally required to be available at its physical office during all regular business hours. In an era of remote work and busy schedules, enjoy safety and flexibility in your schedule, while minimizing the risk of a missed delivery.
- Avoid change fees
- If you move your office, simply let us know your new address. You won’t have to worry about change forms and fees with the Florida Department of State – Division of Corporations.
- Support as you grow
- Harbor Compliance is a nationwide registered agent service provider. As your business grows, you are required to appoint a registered agent in each state. We consolidate your accounts payable through one vendor and help you stay compliant as you grow.
- Peace of mind
- Our Florida registered agent service includes local document scanning and same-day electronic delivery. This helps ensure that you have plenty of time to respond in the event of service of process. This peace of mind is worth the investment.
This guide is part of Company Formation in our Launch Guide.
