How to Start a Business in Florida: A Step-by-Step Guide for 2026

Florida consistently ranks among the top states for new business formation. With 3.3 million small businesses making up 99.8% of all businesses in the state, a growing workforce, no personal income tax, and strong demand across multiple industries, Florida offers a practical environment for entrepreneurs at any stage.

This guide covers every major step — from validating your business idea to staying compliant after launch.

Why Start a Business in Florida?

Florida’s appeal goes beyond its well-known tourism sector. The state’s economy spans aerospace and aviation, life sciences, agriculture, technology, real estate, and international trade. Its ports and airports — including Miami International Airport and PortMiami — connect businesses to Latin American and Caribbean markets with fewer logistical barriers than most U.S. states.

On the tax side, Florida charges no personal income tax and no corporate income tax on pass-through entities such as LLCs, S-corps, and sole proprietorships. Only C-corporations are subject to Florida’s corporate income tax. This structure benefits small business owners directly.

The state also provides a broad network of support resources, including the Florida Small Business Development Center (SBDC) Network, SCORE mentorship chapters, and the Open MyFlorida Business portal — a state-run platform that consolidates licensing, permit, and regulatory information in one place.

Step 1: Define Your Business Concept and Research the Market

Before registering anything, take time to clearly define your business idea and confirm there is demand for it.

Florida’s economy supports nearly every type of business, but certain sectors show particularly strong conditions: construction and real estate (driven by continued population growth), hospitality and food service, healthcare and life sciences, professional services such as accounting and legal, and technology startups concentrated in Orlando, Tampa, and Miami.

Conduct basic market research by identifying your target customer, reviewing competitors in your intended market area, and estimating the realistic size of your addressable market. This work also forms the foundation of your business plan.

Step 2: Write a Business Plan

A business plan gives your venture structure and serves as the primary document lenders, investors, and partners will review before committing resources. At minimum, your plan should address:

• Business concept — what you sell and who buys it
• Market analysis — target customer profile, market size, and competitor landscape
• Revenue model — how the business generates income and what it charges
• Financial projections — startup costs, monthly operating expenses, break-even timeline, and funding requirements
• Operations plan — location, equipment, staffing, and supply chain
• Risk assessment — market, financial, and operational risks and how you plan to address them

Tailor the plan to Florida’s regional market conditions. A business plan written for Miami’s internationally oriented customer base will look different from one built around a service business in a smaller Central Florida county.

Step 3: Choose a Business Structure

Your business structure determines how you’re taxed, how much personal liability you carry, and what administrative requirements apply to you. The most common structures in Florida include:

An LLC is the most widely chosen structure for Florida small businesses because it separates personal and business liability while avoiding double taxation. However, if you plan to raise significant capital through equity investment, a corporation may serve your long-term needs better. Consult a business attorney or CPA before filing — the decision has lasting tax and legal consequences.

Step 4: Choose and Register Your Business Name

Your business name must be distinguishable from all existing registered entities in Florida. You can check name availability on the Florida Division of Corporations website at Sunbiz.org, which is the official state portal for business registration.

If you’re operating under a name other than your legal name, you’ll need to register a Fictitious Name (also called a “doing business as” or DBA) with the Division of Corporations. Once your name is confirmed as available, it’s also worth registering your web domain and social media handles immediately to prevent others from claiming them.

Step 5: Register Your Business with the Florida Division of Corporations

Registration requirements vary by structure:

• LLC: File Articles of Organization through Sunbiz.org. The current filing fee is $125.
• Corporation: File Articles of Incorporation. Fees vary by share structure.
• Sole Proprietorship or General Partnership: File a Fictitious Name registration if not operating under your legal name.

All filings are processed through the Florida Department of State, Division of Corporations. Online filing is faster than mailing forms and is generally recommended.

Step 6: Obtain an Employer Identification Number (EIN)

An EIN (Employer Identification Number) is issued by the IRS and functions as your business’s federal tax identification number. You’ll need it to open a business bank account, hire employees, and file most business taxes. You can apply for an EIN at no cost directly through IRS.gov.

Sole proprietors with no employees may be able to use their Social Security Number in some situations, but obtaining a separate EIN is strongly recommended to protect personal information and simplify accounting.

Step 7: Register for Florida State Taxes

Depending on your business type and activities, you may need to register with the Florida Department of Revenue. Key obligations include:

• Sales and use tax: Required if you sell taxable goods or certain services. Florida’s state sales tax rate is 6%, with additional discretionary surtaxes that vary by county.
• Reemployment tax: Florida’s equivalent of unemployment insurance tax. Required once you hire your first employee.
• Corporate income tax: Applies only to C-corporations operating in Florida.

Use the Department of Revenue’s online registration system to handle these filings.

Step 8: Obtain Licenses and Permits

Florida does not have a single statewide general business license. Instead, licensing requirements depend on your industry, profession, and the county or city where you operate.

Most counties and municipalities require a Business Tax Receipt (also called an occupational license) to conduct business within their jurisdiction. Check with your local tax collector’s office for the specific requirements in your area.

Certain professions require state-level licensing through the Florida Department of Business and Professional Regulation (DBPR), including real estate agents, contractors, accountants, cosmetologists, and healthcare providers. The Open MyFlorida Business portal (openforbusiness.florida.gov) is a helpful starting point for identifying which licenses apply to your situation.

Step 9: Open a Business Bank Account

LLCs and corporations are legally required to maintain a separate business bank account. Even sole proprietors benefit significantly from keeping business and personal finances separate — it simplifies tax preparation, strengthens liability protection, and makes your financial records credible to lenders.

When selecting a bank, compare account fees, minimum balance requirements, and access to business credit products. Some local credit unions offer startup-friendly terms, including reduced fees and dedicated small business support.

Step 10: Secure Funding

Startup costs in Florida vary significantly by industry and business model. A simple service-based business may require only a few thousand dollars to get started, while a restaurant, retail store, or manufacturing operation may require considerably more.

Common funding sources for Florida entrepreneurs include:

• Personal savings: No debt or equity dilution, but carries personal financial risk
• SBA loans: In 2023, the Small Business Administration approved $2.23 billion in 7(a) loans for Florida small businesses — a significant indicator of available credit through this channel
• SBA microloans: Loans up to $50,000, designed for newer or smaller businesses
• Angel investors and venture capital: More relevant for high-growth startups, particularly in tech
• Local and county grants: Some Florida municipalities offer grant programs targeted at community development, underserved markets, or specific industries — these don’t require repayment
• Crowdfunding: Suitable for consumer product businesses with a defined target audience

The Florida SBDC Network and SCORE both offer free consulting to help entrepreneurs evaluate their funding options and prepare loan applications.

Step 11: Set Up Your Accounting and Financial Systems

Establishing proper financial records from day one prevents costly problems later. Practical steps include:

• Using dedicated accounting software to track income, expenses, and payroll
• Saving all receipts, invoices, and tax documents in an organized system
• Hiring a bookkeeper or CPA early if your finances are complex
• Understanding your quarterly estimated tax obligations at the federal level

According to a 2023 NFIB survey, nearly 97% of small business owners keep business and personal finances separate — a habit that directly reduces audit risk and simplifies compliance.

Step 12: Hire Employees and Understand Florida Labor Laws

When you’re ready to bring on staff, Florida law requires compliance with both state and federal employment regulations. Key requirements include:

You must also display a current Florida minimum wage poster in a visible location at each worksite. Updated posters are available through the Florida Department of Commerce.

Step 13: File Your Annual Report

All Florida LLCs and corporations are required to file an Annual Report with the Division of Corporations by May 1 each year to maintain active status. Missing this deadline results in a late fee and, eventually, administrative dissolution of your business entity. File through Sunbiz.org. The process takes minutes and can be completed online.

Step 14: Build Your Marketing Strategy and Network

A marketing plan helps you reach the right customers consistently, rather than relying on word of mouth alone. For Florida businesses, consider:

• Local SEO: Claiming your Google Business Profile and targeting location-specific search terms increases visibility among local customers
• Social media presence: Relevant for most consumer-facing businesses, particularly in retail, hospitality, and personal services
• Co-marketing partnerships: Collaborating with complementary businesses can extend your reach without proportionally increasing your budget
• Networking: Florida has active chapters of industry associations, local chambers of commerce, and entrepreneur groups across all major metro areas — Miami, Tampa, Orlando, Jacksonville, and Fort Lauderdale among them

Organizations like the Women’s Business Enterprise Council of Florida and the Florida Restaurant and Lodging Association offer industry-specific resources and connections that can accelerate your early growth.

Key Florida Business Resources

FAQs

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

The state filing fee for Articles of Organization is $125. Additional costs depend on your industry, required licenses, and whether you hire legal or registered agent services.

Does Florida require a business license?

Florida does not have a universal statewide business license. Most counties and cities require a Business Tax Receipt. Certain professions also require state licensing through the DBPR.

Do I need to collect sales tax in Florida?

If you sell taxable goods or certain taxable services, yes. Register with the Florida Department of Revenue before making your first sale.

What is the Florida Annual Report deadline?

May 1 each year. Filing through Sunbiz.org is required to keep your LLC or corporation in active status.

Can a non-U.S. resident start a business in Florida?

Yes. Non-citizens and non-residents can form and own Florida business entities, though specific banking, tax, and visa considerations apply. Consulting an attorney familiar with international business formation in Florida is advisable.