South Florida has gained national attention for being highly ranked as a hotspot for new businesses and startups. According to Nancy Dahlberg with the Miami Herald, “The Miami-Fort Lauderdale metropolitan area again landed near the top of the Kauffman Foundation’s 2016 Index of Startup Activity, which measures new business creation.” If your entrepreneurial spirit is ready to take flight, review our list of best practices for starting and registering your business properly.
A strong resource for Floridians looking to form a new business is the website Sunbiz.org. This site provides valuable resources, information on business structure, filing, as well as a plethora of FAQ’s related to new businesses.
Once you’ve started your research, be sure to check the local county tax collector website to determine if your business needs a license. Ensure the name you’ve selected for the business is not taken. If it is, the Florida Department of State may deny your request to start a business. Once you have properly named your new venture, determine the type of entity that you will do business. Corporations and limited liability companies are the most common. Steer clear of owning a business personally for liability reasons. Partnerships also have liability issues.
Have the right documents in place once you determine the type of entity that your business will use. Articles of Incorporation are used for corporations and Articles of Organization are used for limited liability companies.
Finally, register your business with the IRS and the Florida Department of Revenue. An EIN- Employee Identification Number will be necessary for tax filing and reporting purposes; it’s also necessary when opening a bank account.
While the trials of entrepreneurship might seem daunting, properly setting up your business will set the stage for success. If you are considering starting a business with a partner, consider speaking with one of our business attorneys. As Brandon Turner, serial entrepreneur mentions, “partner with someone because it makes you stronger. The wrong partner will drive you crazy, make you hate your work and end up causing more problems than they solve.”