In 2018, more than 430,000 new businesses filed paperwork with the Florida Division of Corporations. In fact, the Division of Corporations offers a checklist on how to start a business in Florida. We will take a look at some of the steps involved, and also the information that may not be as obvious.
Research Your Business
Before you open a business, you need to do your homework. Of course, it’s essential to check the market to see if your product or service is needed. It’s also critical that you discuss your new venture with a business attorney. In fact, your lawyer can provide advice about the next steps you will take.
You also may need to check licensing requirements and ordinances. For example, the Florida Department of Business and Professional Regulation licenses and regulates certain professions, including architects, employee leasing companies, and real estate brokers. Florida’s state agency directory contains other licensing agencies.
Identify Your Type of Business
You can choose from several business entities, including:
- Corporation,
- Limited liability company,
- Partnership (general or limited), or
- Sole proprietorship.
Your decision will affect the future of your company, including how it will pay taxes and how the company will be managed. Your business lawyer can explain the consequences of each type of business so you can make an informed decision.
Form Your Business
Next, you will complete the paperwork to start your profit or non-profit business. The forms you submit to the Division of Corporations vary according to the business structure you chose. For example, you will file Articles of Incorporation to form a corporation. However, Articles of Organization are required to create a limited liability company.
After forming your company, you may need to get an Employer Identification Number (EIN) from the Internal Revenue Service. Also, review local, state, or federal laws to make sure your business is in compliance.
Register Your Business Name
This final step is optional. You may have seen companies using fictitious names or “doing business as” or “DBA.” A sole proprietorship operating under any name other than the owner’s personal name is using a fictitious name. A business entity operating under anything other than its legal name is also using a fictitious name. For example, if XYZ, Inc. operates a company known as WidgetsRUs, then XYZ, Inc. needs to register WidgetsRUs as a fictitious business name.
Florida’s Fictitious Name Act requires individuals and business entities to register their fictitious name or DBA with the Florida Department of State. This task needs to be done before you conduct business in Florida.
To Start a Business in Florida, Contact a Florida Business Attorney
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 tm. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. we represent clients throughout South Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, and surrounding communities.