When it comes to the formation of small businesses, Florida is a powerful state. With more than 2.5 million businesses contributing to job creation, small businesses support half of the state’s economy. These small businesses create three out of every four jobs in the state, and these enterprises also make a significant contribution to U.S. exports – they sent more than $57 billion of goods in 2018 to more than 200 countries.
Meanwhile, the real estate market in Florida continues to boom. Several factors are attributed to this. Florida has no state income tax, has mild winters, an open economy, and attracts remote workers. This has all caused a resurgence in the real estate market of the state, both residential and commercial.
How to Form a Business in Florida
It is easy to form a Florida LLC in five steps. Online LLC services make it even easier to complete the process, allowing the business owner to concentrate on the more serious business of getting their startup off the ground and growing.
The first essential step is to choose a business structure, and one of the most popular business structures in Florida is a limited liability company (LLC). The reason for this is that besides being simple to start, LLCs also offer some important benefits for business owners. Besides offering them more protection for their personal assets, LLCs offer tax benefits and the business has more credibility, both with its suppliers and customers.
Naming your LLC, choosing a registered agent, filing the articles of organization, creating the operating agreement, and getting an Employer Identification Number (EIN) are the five simple steps you need to follow to get your startup off the ground.
Why do you need to use the services of a registered agent in Florida?
Registered agents are the person or business you choose to accept legal documents and notify you of their receipt. Their task is to make sure you never miss out on any important payments, court appearances, or any other important dates that can affect your business compliance and financials.
These documents may include service of process, tax notices, and any other state licensing and compliance notifications.
Some business owners prefer to act as their own registered agents, but there are many benefits to hiring a registered agent service. These include that your home or business address never appears on any public records, you won’t have to be present at your business address during business hours to accept notifications, you will never be presented with a lawsuit in front of others, and you will never miss any important dates or payments.
Importance of the Articles of Organization
The Articles of Organization is the official filing document of your LLC. On it, you state the name of your company, the effective date of your businesses’ start, registered agent details, and the address for the principal office of the LLC. The document also has the names and signatures of all its authorized member/s and manager/s of the LLC.
How to protect your LLC from disputes?
The best way to protect your Florida LLC from any disputes or legal actions is with the creation of the operating agreement. In the operating agreement, you need to outline the finer details of your business. These include the responsibilities of each member, the distribution of profits and dividends, and how new members will be admitted.
Other provisions you must add include how existing members can transfer or terminate their involvement. You can add any other provisions if they aren’t in conflict with the business law of the state of Florida.
Why do you need an EIN?
Every business needs an EIN to open a business bank account, file taxes, and hire employees. You can consider this your business’s social security number. You can get one by applying online with the IRS.
Final steps for getting a business off the ground in Florida
Whatever your line of business is, you need a business bank account to legally separate your personal and business finances. This ensures you are protected from liability, also known as a corporate veil. Finally, find out how to get a business license for the type of business service you offer, and make sure to file your LLC’s annual report.
Business vitality in Florida continues to boom. Take advantage of the state’s flourishing business environment, thriving property market, and ease of business the state offers.