Side-by-side comparison for Delaware owners considering Florida.
Cost comparison
Florida: $125 state filing + $138.75/yr annual report = $263.75 year-one, $138.75/yr after. Delaware: $110 state filing + $400/yr annual tax = $510 year-one, $350/yr after. Add foreign-LLC fees if you do business in both states.
No state income tax
Florida has no state personal income tax. Delaware top marginal rate: varies (see our llc-tax-rate-delaware guide). Note: income tax follows where you live and operate, not where the LLC is formed. Forming in Florida does not avoid Delaware income tax if you live in Delaware.
Asset protection
Florida: standard charging-order protection for multi-member LLCs. WEAKER for single-member LLCs because of the Olmstead doctrine — Florida courts have permitted creditor foreclosure on SMLLC interests. For SMLLC asset protection, Wyoming, NM, NV, or Delaware are stronger.
Privacy
Florida: requires manager information on Articles and annual report. Not anonymous. Delaware: stronger privacy than Florida.
When Florida wins
You are a Florida resident operating in Florida. You want no-state-income-tax exposure on LLC profits while living in a no-state-income-tax state. You hold real estate in Florida. You retire to Florida and want consolidation under Florida law.
When Delaware wins
You operate a business in Delaware (employees, lease, customers physically there). Forming in Delaware avoids the dual-state foreign-LLC overhead. The no-Florida-state-tax perk does not transfer to non-Florida residents anyway.
A clean handoff, in 5 steps.
Where do you live and operate?
If you live in Delaware and operate from Delaware, you owe Delaware state income tax on LLC income regardless of where the LLC is formed. Florida formation does not avoid Delaware tax.
Run the dual-state math
Florida ($125 + $138.75/yr) + Delaware foreign LLC (~$110 + ongoing Delaware compliance). vs single Delaware formation.
Consider FL holding company
Florida is a popular state for HOLDING entities owned by Florida residents — separate operating LLCs can sit underneath. The holding company structure works in both directions.
Asset protection check
Florida SMLLC asset protection is weaker than Wyoming / NM / Nevada / Delaware. If asset protection is the goal and you have a single-member structure, Florida is not the strongest choice.
Pick and form
If Florida: we form your FL LLC + Florida Registered Agent. If Delaware: we form your Delaware LLC. Either way our service fee is $0.
Formation is free. Everything else is optional.
We do not charge a service fee to form your LLC or Corporation. State filing fees still apply and pass through at cost. Add the Compliance Bundle to handle the year-one filings everyone needs.
- LLC or Corporation formation (any state)
- EIN application with the IRS
- Articles of Organization or Incorporation drafted and filed
- Free BOS dashboard for ongoing visibility
- Filing receipts to your document vault
- Everything in Free Formation (no add-on fee)
- Registered Agent service in your state (1 entity)
- Annual Report AutoFile, filed every year on time
- Certificate of Good Standing (1 included per year)
- 1 Amendment included per year (address, member, name)
- Operating Agreement (LLC) or Bylaws (Corp)
- Deadline monitoring across all your filings
Common questions.
Should I form my LLC in Florida or Delaware?
Form in Delaware if you operate locally there. Form in Florida if you live in Florida or are setting up a holding entity for Florida-related assets. Income tax follows residency, not state of formation.
Does forming in Florida avoid Delaware state income tax?
No, unless you actually move to Florida. Delaware taxes LLC income based on where you live and operate, not where the entity is registered. That is why forming out of state rarely lowers taxes for an operating business; you still owe where the work actually happens.
Is Florida better for asset protection than Delaware?
Generally no for single-member LLCs because of the Olmstead doctrine. Florida multi-member LLCs have standard charging-order protection. For SMLLC asset protection, Wyoming / NM / NV / DE are stronger choices.
What is the Florida LLC annual report fee?
$138.75 per year, due by May 1. Late filing carries a $400 penalty. The annual report is required even if you have zero income. Missing the deadline can also cost the company its good standing, and a prolonged lapse risks administrative dissolution that requires paid reinstatement to cure.
Does Florida have a state income tax on LLCs?
No. Florida has no state personal income tax. Note: this benefit only applies if you live in Florida — non-resident owners owe state income tax in their home state regardless of where the LLC is formed.
Does Florida require a Registered Agent?
Yes. Florida requires every LLC to maintain a Registered Agent with a physical Florida street address. Our Registered Agent service is $99/yr. The agent must be reachable at that street address during business hours to accept service of process; a P.O. box does not qualify.
How does Florida compare to Wyoming for asset protection?
Wyoming is materially stronger for SMLLC asset protection (charging-order-as-sole-remedy by statute, deep case law). Florida is weaker because of the Olmstead doctrine permitting creditor foreclosure on SMLLCs.
Where to next?
Every filing connects into your File.Business operating system. Pick where to go from here — we keep the rest tracked.
Up a level, or across to the neighbours.
Florida LLC vs your state by state
The national explainer above this page: what changes between jurisdictions, and why.
Open the hub → SectionCompare & choose
Every entity comparison, each with a page per state.
Open the section → StateDelaware business filings
Every filing a business makes in Delaware, gathered on one page.
Open Delaware → In DelawareS-Corp vs LLC in Delaware
S-Corp vs LLC, state by state
Read the guide → In DelawareLLC vs sole proprietorship in Delaware
LLC vs sole proprietorship, state by state
Read the guide → In DelawareNevada LLC vs your state in Delaware
Nevada, or your own state
Read the guide → In DelawareLLC vs Corporation in Delaware
LLC vs Corporation, state by state
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