Florida, the Sunshine State, is the third-largest in the nation in terms of population and boasts miles upon miles of glamorous cities, beaches, and no state income tax. With more than 19 million residents, there are plenty of entrepreneurs in the state wondering what it takes to start a business.
While there is some red tape to navigate, there are several distinct steps you can follow to successfully open your new business.
12 Legal Steps to Starting a Business in Florida
1. Pick a Structure
The first step is to decide what kind of business structure to use. This decision will affect various aspects of the business, including what legal protections to put in place, how you seek financing, and how your company will be taxed. Popular entities include general partnerships, LLCs, sole proprietorship, and corporations.
2. Come Up with a Name
Make sure the name you want for your business is available. The Florida Secretary of State website is a good starting point.
3. Registration
Next, you need to file at the Florida Secretary of State. You can do this online by following the step-by-step instructions for your chosen entity. There is a nominal registration fee. If you need help, an experienced attorney can assist with the registration process.
4. Register Your Name
If you want to form a limited partnership, LLC or corporation, you have the option of registering a fictitious business name. You’ll need to file the necessary forms and pay the fee, and also advertise the name in a local newspaper at least once.
5. File the Tax ID Number
Apply to the IRS for your new business’s federal tax identification number.
6. Sales and Use Tax Certificate
The next legal step is to register with the Florida Department of Revenue for your company’s necessary sales and use tax certificate.
7. Find Out About Pre-Employment Tax
Find out if, when starting a business, will need to pay re-employment tax, and if so, register with the Department of Revenue.
8. Find Out About Corporate Income Tax
If your new business is a corporation, LLC or savings association, you may be subject to the state’s corporate income tax.
9. Permits and Licenses
Some city and county governments require permits and/or licenses to conduct business. Find out what your business might need.
10. Specific Regulations
Several kinds of businesses in Florida are subject to particular regulations and licensing by both local and state governments. Some examples of such businesses include those that deal with firearms, alcohol, tobacco, cosmetologists, restaurants, hotels, barbers, construction, veterinary medicine, real estate, farm labor and more.
11. Set Up Your New Business’s Bank Account
Starting a business means opening a new bank account. To open your bank account, take along your identification and a copy of your incorporating documents. Some banks may also ask to see your business plan.
12. Get Ready for Business
Finally, you might want to consider building a business website. It’s somewhat of a necessity these days, and an up-to-date and well-designed website is an excellent way for potential clients to find out who you are and what you offer.
Why You’d Want to Start a Business in Florida
Florida is an incredibly business-friendly state that offers enticing tax incentives and a range of other perks, especially for small business owners. This is a state that makes starting a business easy, with most registrations available online.
If you plan on opening an especially regulated business, and you need to file with the state’s Department of Business and Professional Regulation, it gives credibility to your company, since customers can check your business’s legitimacy.
While the legal side of opening a new business is fairly straight forward, there is a pile of paperwork involved. With a knowledgeable attorney on your side, you can be sure everything is in order and that you fully understand what you are signing and registering before you open your new business.
Book a consultation with Principal Law Firm today to discuss your new business in Florida.
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