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

Asking yourself how to start a business in Florida? You’re not alone. The Sunshine State is a hotspot for entrepreneurs, and it’s easy to see why. With zero state income tax, a booming economy, and more tourists than you can shake a golf club at, Florida is one of the best places to turn your business dream into reality.

But before you dive in, there are a few things to check off your list. Things like having a solid business idea, registering your business, handling taxes, and making sure the state gives you the official thumbs up to open your business in Florida.

Sound like a lot? Don’t worry, we’ve got you covered. 

This guide will walk you through how to start a business in Florida step-by-step, so you can get up and running (and maybe even enjoy some of that Florida sunshine in between).

{{banner-cta}}

Choose a business structure.

Before starting a small business in Florida, you need to understand the different types of business entities so you can pick the right business structure. Think of it like picking the foundation for your house—choose the right one and everything stays solid. Pick the wrong one and you’re patching up cracks down the road. 

The structure you choose affects your liability, taxes, and day-to-day operations, so let’s show you your options:

Sole proprietorship

Keeping things simple? A sole proprietorship is the easiest and most common way to open a business entity in Florida—no paperwork, no formal registration. But here’s the catch, your business is legally you, which means you’re on the hook for any debts or legal troubles. 

If you’re running a low-risk business and want to get started fast, this might be the way to go.

LLC (Limited Liability Company)

Want to protect your personal assets without the red tape of a corporation? A Florida LLC gives you liability protection while keeping taxes flexible. 

Many entrepreneurs choose this option because it’s easy to set up, and you won’t get hit with corporate taxes. Plus, it gives your business a little more credibility than a sole proprietorship.

Corporation (C-corp & S-corp)

If you’re planning to go big or bring on investors, a corporation might be your best bet. A corporation is its own legal entity, which means you and any co-owners aren’t personally responsible for business debts. 

Florida businesses can register as a C-corp (which gets taxed separately) or an S-corp (where profits and losses pass through to shareholders). Corporations come with more rules and paperwork, but they offer solid legal protection.

Partnership

Starting a business with a co-founder or a group of people? A partnership lets you share ownership, profits, and responsibilities. Partnerships can be general (where everyone shares liability) or limited (where some partners invest but don’t manage daily operations). 

Just make sure you have a solid partnership agreement in place—because nothing ruins a business faster than an unclear “who’s responsible for what” situation.

Register your business with the state of Florida.

Once you’ve nailed down your business structure, the next step in how to open a business in Florida is to make things official by registering with the state. Registering your new business in Florida puts you on the map (legally speaking) and keeps you compliant with state regulations.

Go to the Florida Division of Corporations website.

Before opening a business in Florida, head over to Sunbiz.org—aka Florida’s one-stop shop for business filings. Here, you can check if your dream business name is available, file formation documents, and pay the necessary registration fees.

Steps to register an LLC in Florida

If you’re starting an LLC in Florida, here’s what you’ll need to do:

• Pick a unique business name. Make sure it’s not already taken—Sunbiz.org has a search tool for that.
• File Articles of Organization. This is your LLC’s official paperwork, submitted to the Florida Division of Corporations.
• Pay the filing fee. Expect to shell out around $125 to make your LLC legit.
• Designate a registered agent. This is the person (or service) responsible for accepting legal documents on your business’s behalf.
• Create an operating agreement. While not required, this document lays out how your business will be managed—and helps prevent future headaches.

Once you’ve got all that squared away, congrats. You’re officially in business.

Obtain necessary business licenses and permits.

Starting a business in Florida means more than just picking a name and opening your doors—you’ll need the right business licenses and permits to stay compliant. Some industries have state-specific requirements, while others need local approvals for Florida business owners.

State and local licenses

Depending on your industry, you may need special licenses from Florida’s Department of Business and Professional Regulation (DBPR). Businesses like construction companies, healthcare providers, and restaurants all require specific approvals.

Don’t forget about local requirements. Many Florida counties and cities require local business tax receipts (formerly called occupational licenses). Before you open up shop, check with your local government to see what’s needed.

Common Florida business licenses

Here are some of the most common business licenses in Florida:

• General business license: Most businesses operating in a Florida city or county need this.
• Sales tax permit: If you’re selling taxable goods or services, you’ll need one from the Florida Department of Revenue.
• Professional licenses: Industries like real estate, law, and cosmetology require state-regulated licenses.
• Health and food service permits: Restaurants, food trucks, and catering businesses must meet Florida Department of Health and DBPR requirements.

Skipping the right licenses can lead to fines, or worse, getting shut down. So, double-check what you need before opening your doors.

Understand Florida business taxes.

One of the biggest perks of doing business in Florida? No state income tax. That means more money stays in your pocket—but don’t get too excited yet. There are still other Florida business taxes you’ll need to handle.

No state income tax

Florida doesn’t tax personal income, which makes it a prime spot for entrepreneurs. But depending on your business structure, you may still owe federal and state-specific taxes.

Federal taxes and state-specific taxes

Here are some key business taxes you should know:

• Sales tax: Florida has a 6% statewide sales tax, plus additional county surtaxes in some areas.
• Corporate income tax: Some businesses owe 5.5% corporate tax, so check if your business qualifies.
• Self-employment tax: If you’re a sole proprietor or LLC owner, expect to pay 15.3% for Social Security and Medicare. 
• Employer payroll taxes: Hiring employees? You’ll need to withhold federal income tax, Social Security, and Medicare contributions.

Register for a Florida sales tax number.

Selling taxable goods or services? You’ll need a Florida Sales Tax ID from the Florida Department of Revenue. Skip this step, and you could face penalties—so don’t leave it until the last minute.

Open a business bank account and set up accounting.

Why separate business finances?

Mixing personal and business finances is like mixing sleep deprivation and important emails—just don’t do it. A business bank account keeps your personal assets safe, makes tax time way easier, and helps your business look legit to banks and vendors.

What you’ll need to open a business bank account:

• Employer Identification Number (EIN) from the IRS
• Business formation documents (like LLC Articles of Organization)
• Ownership agreements (for partnerships and corporations)

Set up accounting software.

Want to avoid the tax-season scramble? Get yourself accounting software like QuickBooks, FreshBooks, or Wave to track income, expenses, and tax obligations—because nobody wants to spend hours digging through receipts.

Get business insurance (optional but recommended).

While not legally required for every business, business insurance is a smart move. A single unexpected incident, like a customer slipping on a freshly mopped floor, can lead to costly problems.

Types of business insurance:

• General Liability Insurance: Covers accidents, injuries, and property damage claims.
• Workers’ Compensation Insurance: Required for businesses with four or more employees in Florida.
• Professional Liability Insurance: Protects against lawsuits related to professional errors or negligence.
• Commercial Property Insurance: Safeguards business assets like buildings, inventory, and equipment.

Hire employees and comply with Florida labor laws.

Hiring your first employee? Congrats! But before you get too excited, you’ll need to follow labor laws for doing business in Florida to stay on the right side of regulations.

Key hiring requirements in Florida:

• Register with the Florida New Hire Reporting Center.
• Follow minimum wage laws which is $13/hour in 2025, increasing annually.
• Provide workers’ compensation insurance if you have four or more employees.
• Classify workers correctly because misclassifying independent contractors as employees can lead to penalties.

Market and launch your business

Once you open a business in Florida, it’s time to get the word out and bring in those clients or customers. Whether you're launching a brick-and-mortar shop or an online store, marketing is key to getting those first sales rolling in and is a big step in learning how to start a business in Florida.

Essential marketing steps for new businesses in Florida:

• Create a business website: Use platforms like Wix, WordPress, or Shopify.
• Claim your Google Business profile: This helps with local search visibility.
• Use social media marketing: Platforms like Facebook, Instagram, LinkedIn are free to reach your audience.
• Network with local businesses: Use the Florida Chambers of Commerce as a great starting place.
• Try digital advertising: If you want to boost your efforts, use Google Ads or Facebook Ads to bring in customers fast.

How to incorporate in Florida

If you’re figuring out how to open a business in Florida as a corporation or LLC, here’s what you need to do to make it official:

1. Check business license requirements for your industry.
2. Register your business with the Florida Division of Corporations.
3. Get an EIN from the IRS to handle taxes and payroll.
4. Obtain relevant licenses and permits to stay compliant.
5. Secure the right business insurance to cover potential risks.

Homebase can help you start a business in Florida

Starting a business is exciting, but managing employees, scheduling, and payroll can be a challenge. Homebase helps small businesses streamline hiring, team communication, and time tracking—all in one place.

Try Homebase for free and simplify running your new Florida business.

{{banner-cta}}

FAQs about how to start a business in Florida

How much does it cost to start a business in Florida?

The cost to start a business in Florida depends on the type of business and required registrations. On average, you’ll need $125–$1,000 for filing fees, licenses, and permits, plus any startup expenses like equipment or marketing.

What is the first thing I need to do to start a business in Florida?

The first step to starting a business in Florida is choosing a business structure and registering it with the Florida Division of Corporations. If you’re wondering what else do I need to start a business in Florida, you need to file for an EIN, register for taxes, and obtain business licenses.

What is the best small business to start in Florida?

The best small business to start in Florida depends on location, demand, and industry trends. Popular choices include tourism-related businesses, food trucks, e-commerce stores, and home services like landscaping or cleaning.

How do I start a self-employed business in Florida?

To start a self-employed business in Florida, register as a sole proprietor or LLC, obtain any necessary business licenses, and track income for tax reporting. You may also need an EIN if hiring employees or opening a business bank account.

Do I need a business license in Florida?

Yes, most businesses need a business license in Florida, but the specific requirements depend on the industry and location. Check with the Florida Department of Business and Professional Regulation (DBPR) and your local county or city office for details.

Can I start a business in Florida as a non-resident?

Yes, non-residents can start a business in Florida, and many choose to register an LLC or corporation. You’ll need a registered agent with a Florida address and must comply with state and federal tax laws.

How long does it take to start a business in Florida?

The time to start a business in Florida depends on the business structure and paperwork processing. LLCs and corporations can be approved in a few days online, while licenses and permits may take several weeks.

Do I need an EIN for my Florida business?

Yes, most businesses need an EIN for a Florida business, especially if hiring employees, opening a business bank account, or filing federal taxes. You can obtain an Employer Identification Number (EIN) for free from the IRS website.