In Florida, you may incorporate a S corporation (S corp) by founding a limited liability company (LLC) or a corporation and then choosing S corp status from the IRS when applying for an EIN. To create or convert your current firm into a S corporation, you’ll need Form 2553 Election by a Small Business Corporation.
An S corporation is a tax categorization (Subchapter S) rather than a company structure. The Florida S corp classification is utilized to lower a company’s tax burden.
In our How to Start a S Corp in Florida guide, we’ll walk you through the stages and provide information on requirements.
You must examine the following things when founding a Florida S corporation:
S Corporation Restrictions in Florida
S corporations are restricted to one class of stock and 100 stockholders, among other things. For more information, see our What Is a S Corporation? guide.
As entrepreneurs, we feel that incorporating a S corporation via an LLC is the best option since the benefits of founding a corporation are offset by S corp limitations. LLCs are also less difficult to manage than corporations.
You must determine if the S corp tax status is preferable to the default LLC tax status for your company. Read our LLC vs. S corp tutorial to fully grasp the tax benefits of a S corp.
There are two major methods to form a S corporation:
We do not advocate forming a company with the S corp tax status since it undermines all of the advantages of forming a corporation.
Forming an LLC and Choosing S Corp Status in Florida
Step 1: Give Your LLC a Name
Step 2: Select a Registered Agent.
Step 3: Submit the Articles of Incorporation.
Create an Operating Agreement in Step 4
Step 5: Obtain an EIN and submit Form 2553 to elect S Corporation tax status.
The first and most significant step in forming an LLC in Florida is deciding on a name.
Make sure your name conforms with Florida naming regulations and is readily searched by prospective customers.
1. Follow the Florida LLC naming guidelines:
The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
Your name cannot include wording hinting that the LLC was formed for an illegal or unstated reason in its Articles of Organization.
The name of your LLC cannot include anything indicating that it is affiliated with a state or federal government agency or enterprise.
Certain banned terms (for example, bank, attorney, university) may need extra documentation and the participation of a licensed professional in your LLC.
Except for some fake name registrations, general partnership registrations, and limited liability partnership declarations, your name must be different from any existing firm in the state. To find out whether your name is unique, do a Florida LLC name search.
For additional details, see the Florida state legislation on LLC name rules.
2. Does the name exist in Florida? To determine whether your intended LLC name is available, utilize the Florida Secretary of State’s business entity search on the state’s SunBiz website.
3. Is the URL accessible?
We suggest that you check to see whether your company’s name is accessible as a web domain. Even if you don’t intend to construct a company website right away, you may want to purchase the URL to prevent others from gaining it.
Your Florida LLC must have a registered agent.
A registered agent for your LLC will accept legal papers and tax notifications on your behalf. When you submit your LLC’s Articles of Organization, you will name your registered agent.
Many company owners opt to use the services of a registered agent. Many of these firms will incorporate your LLC for a modest price and provide free registered agent services for the first year.
Consent to Appointment of a Florida Registered Agent
In Florida, registered agents must agree to their appointment by signing the Articles of Organization in writing or electronically.
To properly register an LLC, the Florida Articles of Organization are utilized.
An LLC operating agreement is a legal document that defines your LLC’s ownership and member responsibilities.
An EIN is a number assigned by the US Internal Revenue Service (IRS) to companies in order to identify and tax them. It is basically a business’s Social Security number.
When you apply directly with the IRS, EINs are free.
