Florida New Business Formation Attorney

• What Type of Business Entity Should You Use?
  Florida allows for multiple types of businesses, each with their own advantages. Determining which type is right for your business depends on your specific circumstances, what type of activities your business will conduct, your budget, and your ideal level of liability protection.

  The basic business entities offered in Florida include: (1) sole proprietorships, (2) partnerships, (3) limited liability companies (LLC), (4) corporations, and (5) S corp(s).

  There are other types as well, and each one provides varying amounts of control, liability protection, and requirements.

• Do You Need a License to Run Your Business?
  Most cities and counties in Florida require a business license in order to operate. Further, some industries require licenses to ensure the employees are property trained and certified. Other industries, like lawyers, doctors, CPAs, or architects, require professional licenses in order to operate.

  Careful consideration should be done to determine whether your business will require additional licensing.

• Who Will Own or Manage Your Business?
  Are you starting a business on your own, or are many people involved with ownership or day to day management? Choosing the right business entity will dictate how decisions are made and by whom. For example, a corporation usually includes a board of directors to make major decisions, whereas an LLC can be member-managed or manager-managed.
• What Tax Structure is Right for Your Business?
  Some Florida business entities require a corporate tax return, where some pass through to the individual members. Electing the right business entity can help ensure you’re choosing the best tax structure for you.
• What Are the Fees and Required Documents to Get Started?
  Sometimes the hardest step is the first step. Any new business needs a business plan, and included with that, should be startup costs associated with forming the business. Take careful consideration as to what is necessary to get your business properly formed and ready to operate.
• What Kind of Liability Protection Do You Need?
  One of the most common reasons to form a business is to minimize personal liability for any issues that arise from the business. Some business entities, like a sole proprietorship, do not offer very much liability protection. Others, like an LLC and a Corporation offer strong liability protection. However, steps need to be taken to avoid having the “corporate veil” pierced, so forming an entity is not always enough by itself.

These are just a few things you should consider before attempting to form a business in Florida. Spinner Law Firm can help you make the right choices and avoid unnecessary pitfalls. After all, you’re starting a business because of your passion, getting your business up and running is ours.

Call, e-mail, or message us today for a free consultation so we can learn more about your business and tell you about our straightforward fee structure.

LLC or a Corporation?

One of the most common questions regarding business formation is whether to incorporate or to form a limited liability company (LLC). While these separate and distinct entities share many of the same benefits, there are major differences between them.

Similarities:

• Liability protection
  Both an LLC and a corporation enjoy significant personal liability protection for the owners/members. However, both require a strong separation between the owner and the business. For instance, sharing a bank account between the owner and the business of an LLC is known as “commingling funds,” and should an issue arise, there may be issues separating the business from the owner.
• Number of Individuals Needed to Form
  Both an LLC and a corporation only require one person to form a business.
• Start-up Fees
  The costs for the initial formation of an LLC and a corporation are similar. Corporations do require more upkeep costs than an LLC once they’re formed.

Differences:

• Taxation
  One major difference between an LLC and a corporation is how the owner/shareholder is taxed. An LLC is a “passthrough” company, meaning, the owner(s) do not need a corporate tax return. The owner(s) pay taxes on income generated through the business individually on their own tax return. A corporation does require a corporate tax return, and both the business and the shareholder are taxed on income.
• Management
  A corporation is managed in a centralized manner around a board of directors. Big decisions are made by those on the board of directors. An LLC can be centralized too but can also be shared by different managers. When considering an LLC with multiple owners/managers/members, it’s important to consider whether the LLC will be “member managed” (centralized) or “manager-managed” (shared). The flexibility of the LLC differentiates it from the corporation.
• Transferring Interest
  A big difference between an LLC and a corporation is whether an ownership interest can easily be transferred to someone else. A corporation is owned by shareholders, with varying percentages of ownership. These interests are generally easily transferred from person to person. However, an LLC is more rigid in ownership, and transferring interest, while possible, is not as fluid.

When deciding between an LLC, Corporation, or another type of entity, careful consideration of the business goals is crucial. Spinner Law Firm offers a free consultation to discuss these issues and more, while maintaining a straightforward and simple fee structure. Call (813) 991-5099, e-mail, or message today to schedule your free consultation.