Florida in general (and southeast Florida in particular) is one of the fastest-growing startup hubs in the United States.

For Florida founders wishing to build scalable businesses that may need to raise outside capital, Delaware incorporation is still the recommended first step, but after that, you’ll need to authorize your Delaware corporation to transact business in the state of Florida. This article takes you through exactly how to do that step by step.

Step 1. Ensure your Corporate Name is Compliant

Every state has specific naming rules for corporations, and the Delaware naming rules are slightly different than the Florida naming rules, although there is significant overlap in acceptable names. If your Delaware corporation has a name that already satisfies the Florida naming rules (e.g. if it is a normal name that ends with “Inc” or “Incorporated”) AND if your name is not already taken by another corporation in Florida (which you can find out by searching here), then you can skip to Step 2.

However, if your Delaware corporation has a name that does not satisfy the Florida naming rules (e.g. because of an incorrect or missing suffix or because a corporation already exists in Florida with a substantially similar name), then you must choose an alternative corporate name for use within the state of Florida (you can still use the existing name both outside of Florida and for Delaware legal purposes). Once you have decided what alternative name you’d like to use, proceed to the next step.

Step 2. Choose a Registered Agent

If you have an existing Delaware corporation, then you already have a registered agent in Delaware. However, in order to operate in Florida, you’ll need another one with a registered office in Florida. You can either choose to serve this role yourself (keep in mind this will load you personally with certain inescapable liabilities) or you can choose to hire a company to serve this role.

If you hire a company, be certain you are hiring a reputable company. In addition, realize that most online registered agent companies will try to upsell you on services such as “virtual mail service” without making it clear that even without that service, they are still required by law to handle your mail regarding lawsuits (which is, after all, the precise job definition of a registered agent).

Unfortunately, Florida has not updated its out-of-state authorization procedures in a long time, so there is no way to request authorization online. Instead, you have to mail in your application, and to complicate matters, the application must be signed by your registered agent. That leaves you with three options: (1) find a registered agent who is willing & capable of filling out the application correctly and filing it on your behalf (no cheap online registered agent service I’ve ever found can do that), (2) find a registered agent with real customer service who is willing to coordinate with you via email to sign the application and then return it to you to file yourself (CSC Global for example), or (3) hire a lawyer or other business with the necessary expertise to coordinate and handle the entire situation on your behalf.

Step 3. Order an Official Certificate of Good Standing

Order an official “certificate of good standing” from the Delaware Division of Corporations. Take note that a certificate of good standing is NOT the same as the corporate status available to order online. You can order the certificate of good standing either at the same time as you file for incorporation in Delaware or afterward. In either situation, you’ll complete the order by going to the Document Upload Service webpage. If you’re doing this after already incorporating, then choose the “certificate request” option. If you’re doing all of this on your own, then have the certificate mailed to your address.

Step 4. Fill out the Application

Complete this cover letter AND application form and then coordinate via email or otherwise with the Florida registered agent you hired to get the application signed by them. Print out the cover letter and application once complete, and sign yourself where indicated.

Step 5. Mail in the Application

Once you have received the official certificate of good standing from Delaware, you’re ready to actually mail in your application. Your submission should include each of the following:

• The completed cover letter from step 4
• The completed application from step 4, signed by both you and your registered agent
• The official certificate of good standing you received from Delaware
• A check or money order, payable to the “Florida Department of State”, for the amount of the registration fee (at the time of writing, that amount is $70)

Mail in your submission with all of the items just enumerated to the mailing address specified on the cover letter form from step 4.

Step 6. Maintain Compliance Going Forward

Once you receive a letter of acknowledgment from the Florida Department of State, you’ll be able to legally transact business in the state. Keep this letter of acknowledgment in your corporate records.

To maintain your business’s legal right to operate in the state, you’ll need to file an annual report just as all companies actually incorporated in Florida must do. The report must be filed electronically between January 1st and May 1st every year, starting the year AFTER your corporation was formed.

Additionally, to stay compliant with Florida law, you’ll need to file and pay both annual state corporate income taxes and quarterly estimated state corporate income taxes. You can find more information about that here.