With its strong economy, favorable tax structure, and pro-business culture and laws, it’s understandable why so many business owners want to open their doors in the Sunshine State. However, if you are considering starting a new Florida enterprise, you will want to make sure you take the right steps to support your venture and its success. Part of the process involves knowing what not to do. Here are some common Florida startup mistakes and how to avoid them:
Starting a Business in Florida
According to a recent report, Florida is a national leader in business startups. In January 2021 and January 2022, almost six million applications for new businesses were filed here. If you are like thousands of others wanting to establish a business in Florida, you are not alone. When compared nationally, in 2021, Florida had more new business formations than any other state.
Startup Mistakes to Avoid
- Choosing the Wrong Business Entity
As a Florida business owner, you have choices as to the type of business entity you form. Naturally, there will be pros and cons to different types of structures. However, one key difference that may matter is liability. Some formations allow for personal and business liability. By contrast, there are others that limit liability to the business. You will want to ensure you know the differences and choose the right formation to protect your startup and interests.
- Not Adhering to Business Entity Requirements
Once you have determined the most appropriate business entity for your startup, you will need to be certain you file the correct information with the state and meet all requirements. Some formations require that you generate reports and have certain agreements be in place. You may also need to ensure that you are complying with governance rules and all tax requirements.
- Not Developing Clear Employment Policies and Other Agreements
Starting a new business can be an exciting process. However, it’s important to consider how your new enterprise will operate and oversee its workforce. You will want clear employment policies that support your operations and comply with state and federal law. You may also need to consider using non-compete and non-solicitation agreements with your employees.
- Not Planning for Long-Term Growth
Some business owners are so focused on getting their operations up and running that they neglect to consider long-term growth. Planning for your business’s future is crucial. This may involve thinking about issues such as commercial lease terms, office space, inventory, investments, funding, vendor agreements, and other important matters.
- Failing to Follow Zoning and Permitting Requirements
Depending on your type of business, you may plan to open a retail or operational location. When doing so, you will need to know about your chosen Florida municipality and its zoning and permitting requirements. The zoning and permitting process can take time, and it’s important to know how to make the right requests and follow the appropriate process.
- Not Working with a Florida Business Attorney
One critical mistake startups sometimes make is not consulting with an experienced Florida business attorney. As indicated above, as a Florida business owner, there are numerous laws and regulations you will need to know. Additionally, startups need to be aware of permitting and zoning requirements as well as the state’s employment laws. There are also employment agreements, policies, and other documents that you will need to have professionally drafted. A business lawyer can help you with these and other essential areas.
Therefore, the first step you will want to take when planning for your startup is consulting with an experienced Florida business attorney. Your business lawyer can help you identify potential issues, understand the legal requirements, plan for the future, and protect your new Florida business.
Contact an Experienced Florida Business Attorney
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, 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.