How Much Does It Cost to Set up an S Corp in Florida?

Florida offers numerous tax benefits and represents a favorable location for business owners to start an S corp. Entrepreneurs can enjoy several benefits of establishing a Florida S corporation.

Before setting up your S corp in Florida, consider the filing costs to establish your new business. 

This article will summarize the cost of establishing a Florida S corporation. We’ll also explain the pros and cons of choosing an S corp business structure for your Florida business. 

Breakdown of Costs of Setting up an S Corp in Florida

How much does it cost to establish an S corporation in Florida? 

Starting a Florida S corp costs $70 for most businesses. The price tag includes the following: 

• Articles of incorporation filing fee: $35
• Registered agent designation fee: $35

Additionally, Florida businesses must file annual reports to maintain good standing. Your annual report filing fee depends on your S corporation’s federal tax status: Florida corporations pay $150.00, and Florida limited liability companies (LLCs) pay $138.75 yearly. 

Entrepreneurs can opt for additional filings. We’ll break down the setup costs and optional fees below. 

Articles of Incorporation

S corporations must establish bylaws and articles of organization. To start a Florida business, the S corp owner must file articles of incorporation with the Florida Department of State. Business owners can file online or mail forms to the state. The fee for the articles of incorporation filing is $35.

Registered Agent Designation

A registered agent is an individual or business authorized to handle correspondence and administrative matters for the company. 

Business owners must designate a registered agent as part of the Florida articles incorporation filing. The registered agent designation fee is $35.

Annual Report

Florida businesses must file annual reports, due May 1st every year. The annual report fee varies depending on the company’s federal income tax entity type. 

• Florida corporation annual report: $150
• Florida LLC annual report: $138.75

Optional Florida Filings

Florida provides several optional business filings and certifications. The following list summarizes the fees associated with each. Business owners can refer to the Florida Department of State website for instructions. 

Articles of incorporation:

• Certified copy: $8.75
• Certificate of status: $8.75

Fictitious name registration (such as a “doing business as” or “dba” name): $50

• Certified copy: $30
• Certificate of status: $10

1-800Accountant offers industry- and state-specific experts who can help you set up your Florida S corporation without the hassle. Consult professionals for budget-friendly business formation services. 

Pros and Cons of Setting up a Florida S Corporation

Florida S corporations present several benefits and disadvantages. Consider the following pros and cons of establishing an S corp in Florida.

Pros of Establishing a Florida S Corporation

Setting up a Florida S corporation can present several benefits, especially regarding the business owner’s income tax burden. 

Tax Savings:

• Pass-through taxation: S corporations are pass-through entities, which means the company’s income flows directly to the owner. S corps avoid double taxation. The business must file a federal income tax return but does not pay federal income tax. A few exceptions apply – consult professionals to determine whether your S corporation must pay federal income tax.
• No Florida business tax return for S corps: Florida S corporations generally do not file corporate income tax returns. (S corps must file Form F-1120, Florida Corporate Income/Franchise Tax Return, if they pay tax on Form 1120S line 23c – this is uncommon.)
• No Florida personal income tax return for S corp owners: Florida does not impose an individual income tax, so most Florida S corp owners can avoid paying state income tax on business income.

Liability protection:

• S corporations represent separate legal entities. Business owners can protect their personal assets from legal claims against the company.

Employment benefits:

• S corp owners can enjoy self-employed health insurance and retirement plan contribution benefits. Certain self-employed health insurance premiums and retirement plan contributions represent tax deductions.

Cons of Establishing a Florida S Corporation

S corps must comply with various filing requirements established by the Internal Revenue Service (IRS) to maintain S corporation status. The increased restrictions present the following disadvantages of S corporations. 

• Reporting requirements: S corporations must maintain records of each shareholder’s basis and comply with federal income tax laws applicable to S corps.
• Stock restrictions: S corps cannot issue more than one class of stock.
• Shareholder restrictions: S corporations must maintain less than 100 shareholders. Corporations, partnerships, and nonresident aliens cannot be S corp shareholders.

Get Expert Advice on Setting up a Florida S Corporation

1-800Accountant helps business owners with entity formation, EIN filing, and registered agent services. If you’re considering starting a Florida business, consult with accounting professionals who can take over tedious paperwork and complicated forms. You’ll also get year-round tax advisory and tax return support.

Schedule a free consultation with 1-800Accountant to get state-specific expertise on your new business.

Florida S Corporation FAQ

What Is an S Corporation?

An S corporation is a pass-through business, which means the company does not pay federal income tax on its earnings. Instead, the S corp passes revenues and expenses through to its shareholders.

Each shareholder pays self-employment tax on their share of business income. Business owners report S corp income on their personal income tax returns.

How Can You Convert a Florida Corporation or Florida LLC to an S Corp?

Florida C corporations can elect S corp tax status by filing IRS Form 2553, Election by a Small Business Corporation. Business owners should confirm the company meets the S corporation eligibility requirements.

Florida LLCs must file IRS Form 8832, Entity Classification Election, to elect C corp income tax status. After the LLC elects corporate tax treatment, the company can file the S corp election.

How Can You File as an S Corp in Florida?

The Florida Department of State website summarizes the following steps to start a business in the state:

1. Research starting a business
2. Identify your business structure
3. Form your business: Profit or non-profit corporation, Limited liability company (LLC), Partnership
4. Register your business name (optional)

Additionally, the Florida Department of Revenue requires S corporations to submit a copy of one of the following documents to verify their tax status:

• IRS Notice of Acceptance as an S corp
• Page 1 of the company's Federal Form 1120S

Companies that initially registered as C corporations for Florida tax purposes must notify the state of their conversion to S corp status using the free online account change form.

How Are S Corps Taxed in Florida?

S corporations are pass-through entities for federal income tax purposes. The business does not pay income tax. Instead, the owners pay personal income tax on their share of business profits. Business owners report their S corp income and distributions on federal Form 1040.

Florida follows the federal S corp treatment, meaning the state does not impose an income tax on S corporations. Additionally, Florida does not impose an individual income tax. Florida S corp shareholders do not need to pay state income tax on their pass-through income. 

1-800Accountant can help your business calculate federal and state income taxes. Consult professionals for year-round tax filing support.

How Can You Renew an S Corp in Florida?

Florida S corporation owners can renew their business registrations by filing annual reports with the Florida Department of State. Every company must file an annual report by May 1st each year.

Annual report fees depend on your business entity type, as follows:

• Corporate annual report: $150.00
• Limited liability company annual report: $138.75