COVID-19 shutdowns and restrictions devastated many companies. However, starting a small business in Florida still might be the right move for you. It’s just critical to do it right. As a business lawyer with decades of experience, I’d like to share the following four basic steps to starting your Florida business.
#1. Research, Research, Research
Before starting a small business, you’ll spend some time reviewing your options. Are there any declining industries to avoid? Is a particular type of small business hot right now? What’s the market for your products or services? Much research goes into preparing your business model and plans.
The Florida Division of Corporations offers a page with general information for people hoping to start a small business in Florida. This page provides data to answer questions you have about forming a business and could prove to be an ongoing source of pertinent information.
Your Florida business lawyer can also provide advice based on Florida laws.
Once you feel you have researched your business enough, you’ll need to choose an entity.
#2. Identify the Right Small Business Type
When starting a small business in Florida, you might choose one of the following entities:
- Corporation,
- Limited liability company,
- Partnership,
- General partnership,
- Limited partnership, or
- Sole proprietorship.
Before choosing, it’s important to consider what each entity has to offer. Primary considerations include:
- Ease of formation,
- Management style,
- Partnership or flying solo,
- Tax structure, and
- Protection from liability.
Here, again, an experienced business lawyer can point out advantages and disadvantages to you before you get started.
#3. Correctly Form Your Small Business in Florida
Choosing a business entity affects how you form your business. For one thing, some business entities require more paperwork. Sole proprietorships are the easiest to form, while corporations typically are the most difficult.
The documents you need to form your business vary. To form a corporation, you will need, at a minimum, Articles of Incorporation. Limited liability companies are formed with Articles of Organization. Generally, you’ll have to file several documents to form a partnership, especially since there are several types of partnership from which to choose.
If this sounds complicated, it certainly can be. When starting a small business, the formation documents must be correct to prevent future issues.
#4. Register Your Small Business in Florida
This step is optional. Many professional businesses will register with the Department of Business and Professional Regulation. Also, some small businesses in Florida must register with local counties. Finally, you must go through Florida fictitious name registration if you are operating under a name that is:
- “Different from your personal name if doing business as a sole proprietor.
- Different from your entity’s legal name, if you have incorporated and otherwise formed a separate legal business entity.”
For example, you might form a corporation named AnyCompany, Inc. that then operates a small business in Florida named Joe’s Universal Widget Company. Generally, Joe’s Universal Widget Company would be considered a fictitious name that should be registered.
Thinking of Starting a Small Business in Florida?
We have the experience you need to get started right. At every step, we can analyze your situation and provide sound advice based on Florida laws.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.