[vc_row][vc_column][vc_single_image image=”41590″ img_size=”full”][vc_column_text]Around 45-51 percent of small businesses make it beyond the five-year mark. That’s because running a business requires planning, patience, and perseverance, and not everyone has what it takes to sustain this energy long-term. Additionally, your business needs to be built on a firm legal foundation to ensure long-term viability in an ever-changing, ever-competitive market. This article outlines some of the major requirements and legal considerations for when you want to start a business in Florida.
Let’s get right to it.
1. Identifying an Appropriate Legal Structure When Starting a Business in Florida
A legal structure or a legal entity is a government-based classification that determines certain rights and liabilities of your business. This includes determining your tax rates, internal hierarchy, paperwork requirements, and legal ramifications in the event of a lawsuit.
Sole Proprietorship
A sole proprietorship is ideal for someone looking to start and run their own business. Forming and terminating a sole proprietorship is a relatively simple process.
Partnership
A partnership is designed for two or more business owners. Some partnerships allow for equal ownership, liability, and share of profits between partners. Others allow for one partner to be appointed as a sole operator and others to share in monetary contributions and profits.
You can choose the right variation depending on how you want to run your business.
Limited Liability Company
A limited liability company limits personal liability while allowing members the flexibility of a partnership. This is an option generally chosen by small businesses; however, in some cases, it may be appropriate for larger companies as well.
Corporation
The law acknowledges that a corporation is an entity separate from its owners. It has its own rights and liabilities. Additionally, corporations come in many forms, including C corporations, S corporations, B corporations, and more.
Be sure to talk to consult a qualified business attorney to get advice on what is right for your business in Florida.
2. Registering a Business Name and Entity
As an LLC or corporation in Florida, you must ensure that your business name is unique and not previously registered. As a sole proprietorship or a partnership, you have different requirements.
If you choose a name different from your own name or surname, you will have to register this new name with the Florida Department of State.
Further, each type of business entity will have different requirements. For example, to register an LLC, you must file Articles of Organization, while to register a corporation, you must file Articles of Incorporation.
In order to register, you need to know your business name, business address, details of a registered agent (where relevant), corporate purpose, stock shares (where relevant), and the date of effect.
3. Obtaining Licenses and Permits to Start a Business in Florida
In order to operate and run a Florida business, you’ll need certain licenses and permits depending on the type of service or the goods you are selling.
For example, alcohol sales require a special permit while waste disposal may need a different type of license. In order to sell products, you require tax registration.
To obtain a relevant license, you may have to go to the Florida Department of Business and Professional Regulation, the Florida Department of Agriculture and Consumer Service, or a state agency, depending on the type of license you need.
4. Examine Zoning Regulations and Requirements
Zoning departments determine which areas are suitable for commercial, industrial, and residential purposes. When choosing a spot to set up your business, make sure to learn the relevant zoning regulation corresponding to your location.
Further, you also want to make sure that the location is appropriately zoned for the type of business or service you want to run. Alternatively, if you choose to run your business from your own house or the home you rent, you may have to evaluate the terms of your lease.
5. Understanding Business Taxes When Starting a Business in Florida
Sole proprietorships and partnerships will incur federal taxes on personal or partnership income. Similarly, an LLC or a corporation may be liable to pay federal or state corporation tax. Shareholders will have to pay federal taxes on their personal shares of income even if they are also employees.
You will have to open a special business account to make the tax filing process easier. It’s also a good way to separate your business expenses from your personal expenses. This makes business financial operations a lot easier.
6. Preparing Agreements and Other Legal Contracts
In order to carry out business, you may need to draft multiple agreements and contracts. This includes:
- Non-disclosure agreements
- Partnership agreements
- Indemnity agreements
- Property leases
- Equipment leases
- Employment contracts
Further, you may also need a contractor, full-time, and part-time employee agreement. Some businesses also require special terms and conditions while executing a sale or offering a service. A well-drafted agreement or contract can help you prevent future lawsuits and save you a lot of money in the long term.
Consult with an Experienced Florida Business Attorney to Start a Business in Florida
Are you ready to start a business in Florida? It takes a lot of research, a good understanding of Florida’s business laws, and litigation rules, and the ability to comprehend legal documents.
While this may seem like a daunting task, know that there are qualified business attorneys who are here to make your job a lot easier.
Shoot us a message to get personalized advice and assistance on starting your business using our online contact form, or get in touch at (407)574-2573.[/vc_column_text][/vc_column][/vc_row]
