How to Start a Business in Florida (2022 Guide) – Forbes Advisor

To start a business in Florida, you will need to choose a business name and decide on your business structure. There are several types of business entities, including sole proprietorships, limited liability companies (LLC), limited liability partnerships (LLP), and corporations.

Individual business

A sole proprietorship is an unincorporated business that has only one owner. Unlike corporations, sole proprietorship income is taxed like the owner’s personal income. If you opt for a sole proprietorship, you will be personally liable for your debts and business obligations as the owner of the business. If you operate in Florida, there is no Florida income tax, but you will have to collect sales tax, if applicable.

Self-employed and gig workers often start as sole proprietorships and then transition to an LLC once the profits of the business justify the expense of setting up an LLC.

Limited Liability Company (LLC)

Unlike a sole proprietorship, an LLC is a separate legal entity with one or more owners or members. When you form an LLC, creditors cannot legally attack your personal assets as long as those assets have been secured by the LLC instead of you personally. If your LLC ever goes bankrupt, your personal assets are safe from the liability of creditors and employees. An LLC can choose to be taxed as a sole proprietorship, partnership, or corporation.

There are many ways to start an LLC in Florida. Best LLC Services handles all of the business formation details for you, including obtaining a Federal Employer Identification Number (EIN) and filing the legal documents required by the State of Florida to establish your business.

Limited Liability Company (LLP)

An LLP is similar to an LLC in that it provides partner owners with legal protections. In Florida, however, LLPs are always personally liable for partnership debts. The LLP provides each partner with protection against the liabilities of the other partners. LLPs are commonly used by those who provide professional services, including architects, lawyers, and accountants. While some states do not offer LLPs, Florida does.

LLPs are tax-through entities, with partners paying tax on business profits on their personal tax returns.

society

Forming a corporation is similar to forming an LLC, although the structure of a corporation is different. Like LLCs, corporations are separate legal entities that protect the personal assets of owners, but corporations also have shareholders, directors, and officers. Corporations are subject to other requirements, such as holding regular shareholder meetings and maintaining corporate records.

An S corporation (S-corp) is a type of corporation that offers certain tax benefits to those who qualify for S-corp status. Large organizations that wish to issue more than one class of shares or that depend on attracting venture capital are usually incorporated as C corporations (C-bodies).

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