Florida has a way of turning ideas into action. Maybe it’s the steady stream of new residents. Maybe it’s the lack of a state income tax. Or maybe it’s just that entrepreneurial spirit you feel everywhere—from small downtowns to fast-growing suburbs. Whatever the reason, Florida consistently ranks as one of the most popular states in the country to start a business.
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But here’s the part many people don’t tell you: starting a business in Florida isn’t hard—but doing it right takes some planning.
We’ve sat across the desk from first-time entrepreneurs, retirees launching passion projects, and families opening their second or third business. The questions are often the same. Where do I start? What do I file? Who do I talk to first?
This guide walks you through the entire process, step by step, in plain language. No jargon. No hype. Just practical guidance from a community-banking perspective—so you can start your Florida business with confidence and clarity.
Why Florida Is a Popular Place to Start a Business
Before diving into the “how,” it helps to understand the “why.”
Florida offers several advantages for business owners:
- No state personal income tax, which can make a meaningful difference for sole proprietors and pass-through entities
- Strong population growth, creating demand for local services and products
- Business-friendly regulations compared to many other states
- Diverse industries, from tourism and healthcare to construction, logistics, and professional services
That said, Florida also has its quirks—local licensing rules, sales tax requirements, and insurance considerations that catch new owners off guard. Knowing those upfront is half the battle.
Step 1: Clarify Your Business Idea and Goals
Every successful business starts with a clear purpose.
Before filing paperwork or opening accounts, take time to answer a few foundational questions:
- What problem does your business solve?
- Who is your ideal customer?
- Will this be a side business, full-time income, or long-term investment?
- Do you plan to stay small or grow over time?
You don’t need a 40-page business plan, but you do need direction. Even a one-page outline covering your services, pricing, startup costs, and revenue expectations can save you from costly missteps later.
Helpful resource:
The U.S. Small Business Administration offers free business planning templates and local counseling through its SCORE program.
Step 2: Choose the Right Business Structure in Florida
Your business structure affects taxes, liability, and how you operate day to day. In Florida, the most common options are:
Sole Proprietorship
- Simplest structure
- No formal registration required (beyond licenses)
- You and the business are legally the same
Best for very small, low-risk businesses—but it offers no personal liability protection.
Limited Liability Company (LLC)
- Most popular choice for Florida small businesses
- Protects personal assets
- Flexible tax treatment
For many entrepreneurs, an LLC strikes the right balance between simplicity and protection.
Corporation (S Corp or C Corp)
- More complex setup and compliance
- Often used for larger businesses or those seeking investors
If you’re unsure which structure fits best, this is a good moment to talk with a CPA or attorney. A short conversation now can prevent expensive changes later.
Step 3: Register Your Business with the State of Florida (Sunbiz)
Most Florida businesses must register with the state through Florida Division of Corporations, commonly known as Sunbiz.
You can register online here:
https://dos.myflorida.com/sunbiz/
What You’ll Need to File
- Business name
- Registered agent (a person or service who receives legal documents)
- Business address
- Names of owners or managers
Florida registration fees are relatively modest, and most filings are processed quickly.
Pro tip: Before submitting, search Sunbiz to make sure your desired business name is available.
Step 4: Get an EIN from the IRS
An Employer Identification Number (EIN) is like a Social Security number for your business.
You’ll need an EIN if you:
- Form an LLC or corporation
- Hire employees
- Open a business bank account
Applying is free and takes just a few minutes on the IRS website:
https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
Avoid third-party sites that charge a fee for this service. The IRS application is straightforward.
Step 5: Obtain Required Florida Licenses and Permits
Florida doesn’t have a single, universal “business license.” Requirements vary by:
- Industry
- County
- City
Most businesses need at least one of the following:
Local Business Tax Receipt
Issued by your city or county (sometimes both). This allows you to legally operate in that jurisdiction.
State or Professional Licenses
Certain industries—like contractors, real estate professionals, healthcare providers, and cosmetologists—require state-level licensing.
You can start your search here:
https://www.myfloridalicense.com/
Because local rules differ, always check with your city and county offices. This is especially important for home-based businesses.
Step 6: Understand Florida Tax Obligations
Florida’s lack of state income tax is a major advantage—but it doesn’t mean you’re tax-free.
Common Florida Business Taxes
- Sales and Use Tax (if you sell taxable goods or services)
- Reemployment (Unemployment) Tax if you have employees
- Federal income and self-employment taxes
Most businesses that collect sales tax must register with the Florida Department of Revenue:
https://floridarevenue.com/
If taxes feel overwhelming, you’re not alone. Many new owners benefit from working with a local CPA who understands Florida-specific requirements.
Step 7: Open a Florida Business Bank Account
This step often gets overlooked—but it’s one of the most important.
Separating personal and business finances:
- Protects your liability status
- Simplifies accounting and taxes
- Builds credibility with customers and vendors
What You’ll Typically Need
- EIN confirmation letter
- Sunbiz registration
- Operating agreement or corporate documents
- Valid ID
At a community bank, this process tends to be more personal. We get to know your business, your goals, and how you plan to use the account—not just check boxes.
Step 8: Secure Funding (If Needed)
Not every business needs a loan—but many do.
Common funding options in Florida include:
- Personal savings
- Business lines of credit
- Term loans
- SBA-backed loans
Local lenders often take a more holistic view of your application, considering your character, experience, and ties to the community—not just your credit score.
Before applying, know:
- How much you need
- What you’ll use it for
- How you plan to repay it
Preparation builds confidence on both sides of the table.
Step 9: Set Up Accounting and Recordkeeping
Good bookkeeping isn’t just about taxes—it’s about understanding your business.
At a minimum, you should:
- Track income and expenses
- Save receipts
- Reconcile accounts monthly
Many small businesses use simple accounting software paired with professional oversight from a CPA or bookkeeper. This keeps things accurate without adding stress.
Step 10: Protect Your Business with Insurance
Florida businesses face unique risks—from hurricanes to liability claims.
Common types of coverage include:
- General liability insurance
- Commercial property insurance
- Workers’ compensation (required for many businesses)
Insurance isn’t exciting—but it’s essential. A local insurance agent can help tailor coverage to your industry and location.
Step 11: Hire Employees (If Applicable)
Hiring brings new responsibilities.
In Florida, employers must:
- Verify employee eligibility (I-9)
- Report new hires
- Carry workers’ compensation insurance
- Withhold and remit payroll taxes
The Florida New Hire Reporting Center provides guidance here:
https://floridanewhires.com/
Even if you start solo, it’s wise to understand these requirements ahead of time.
Step 12: Build Local Visibility and Community Connections
This is where Florida businesses often thrive.
Successful local businesses don’t just open their doors—they become part of the community.
Ways to do that include:
- Joining local chambers of commerce
- Partnering with nearby businesses
- Supporting community events and nonprofits
- Building relationships with local bankers, accountants, and advisors
These connections often lead to referrals, partnerships, and long-term stability that no ad campaign can replicate.
Common Mistakes New Florida Business Owners Make
We see a few missteps come up again and again:
- Mixing personal and business finances
- Skipping required licenses
- Underestimating taxes
- Waiting too long to ask for professional help
None of these are fatal—but all are avoidable with the right guidance.
Helpful Resources for Florida Business Owners
- Florida Division of Corporations (Sunbiz): https://dos.myflorida.com/sunbiz/
- Florida Department of Revenue: https://floridarevenue.com/
- IRS Small Business Center: https://www.irs.gov/small-businesses
- U.S. Small Business Administration: https://www.sba.gov/
Bookmark these. You’ll come back to them more than once.
Starting a Business Is a Process—Not a Single Moment
Starting a business in Florida isn’t about checking off a list in one weekend. It’s a series of thoughtful steps, each building on the last.
When done well, those steps create something lasting—not just a source of income, but a contribution to the community.
At a community bank, we see firsthand how small businesses shape neighborhoods, support families, and fuel local growth. If you’re thinking about starting a business in Florida, don’t go it alone. Ask questions. Build relationships. Lean on local expertise.
Your business doesn’t just belong on paper—it belongs here, in the community you’re helping to grow.
