A limited liability company (LLC for short) is a way to legally structure a business. It combines the limited liability of a corporation with the flexibility and lack of formalities provided by a partnership or sole proprietorship. Any business owner who seeks to limit his or her personal liability for business debts and lawsuits should consider forming an LLC.

Here are the steps you need to take to form an LLC in Florida. For more information on how to form an LLC in any state, see Nolo's article How to Form an LLC.

1. Choose a Name for Your LLC

Under Florida law, an LLC name must contain the words "Limited Company" or "Limited Liability Company," or the abbreviations "L.C." or "L.L.C." The word "Limited" can be shortened to "Ltd." and "Company" may be abbreviated as "Co."

Your LLC's name must be recognizably different from the names of other business entities already on file with the Florida Division of Corporations. Names may be checked for availability by searching the Department of State: Division of Corporations business name database. You may not reserve a name before organizing your LLC.

2. Appoint a Registered Agent

Every Florida LLC must have an agent for service of process in the state. This is an individual or business entity that agrees to accept legal papers on the LLC's behalf if it is sued. A registered agent may be either an individual resident or business entity that is authorized to do business in Florida. The registered agent must have a physical street address in Florida.

3. File Articles of Organization

A Florida LLC is created by filing Articles of Organization with the Florida Division of Corporations.

The articles must include:

• the street and mail address of the LLC's principal office
• the name, address, and signature of the LLC's registered agent
• the names and addresses of the LLC's managers
• the effective date of the LLC (if other than date of filing), and
• signature of a member or authorized representative.

The filing fee is $125. The articles may be filed online or by mail.

4. Prepare an Operating Agreement

An LLC operating agreement is not required in Florida, but is highly advisable. This is an internal document that establishes how your LLC will be run. It sets out the rights and responsibilities of the members and managers, including how the LLC will be managed. It can also help preserve your limited liability by showing that your LLC is truly a separate business entity. In the absence of an operating agreement, state LLC law will govern how your LLC operates.

For help creating an LLC operating agreement, see Form Your Own Limited Liability Company, by Anthony Mancuso (Nolo). If an operating agreement is created, it need not be filed with the Articles of Organization.

5. Obtain an EIN

If your LLC has more than one member, it must obtain its own IRS Employer Identification Number (EIN), even if it has no employees. If you form a one-member LLC, you must obtain an EIN for it only if it will have employees or you elect to have it taxed as a corporation instead of a sole proprietorship (disregarded entity). You may obtain an EIN by completing an online application on the IRS website. There is no filing fee.

6. File Annual Reports

All Florida LLCs must file an Annual Report yearly to maintain "active" status. The first report is due in the year following formation. The report must be filed online between January 1st and May 1st. The fee for the annual report is $138.75. After May 1st, a $400 late fee is added to the annual report filing fee. "Annual Report Reminder Notices" are sent to the LLC's email address you provide when you submit this document for filing.