The help of an experienced Florida Business Attorney who not only understands the law but also knows how to maintain a business is crucial when starting a business in Florida.
A Florida Sole Proprietorship is the most basic legal structure for a business. However, it is not a recommended way to structure your company, mainly because you do not own the business, YOU ARE THE BUSINESS.
When it comes to the advantages of Sole Proprietorships, we can include that they do not require any fees, legal documentation, or filings other than the applicable business permits.
The biggest disadvantage of Sole Proprietorships, however, is that they offer absolutely no protection for the business owner against creditors. Essentially, this means that creditors, such as a landlord or even suppliers can directly sue the business owner. In a Sole Proprietorship, the business owner is personally responsible for all debts of the company, which is why choosing this structure might not be a great move for certain types of businesses. Would your business benefit from choosing the Sole Proprietorship structure? An experienced Florida Business Attorney from Jurado & Farshchian, P.L. can help you answer that question.
Florida S-Corporations are required to file Articles of Incorporation with the Florida Secretary of State and pay the applicable fee for that filing. Corporations in Florida are also required to file an annual report between January and May, every year, in order to maintain their existence.
In Florida, S-Corporations offer a favorable tax treatment under federal and state tax laws. S-Corporations are what is known as “pass-through” entities, which essentially means that there is no double taxation; you do not pay taxes individually and then pay taxes again as a corporation.
If you are planning to use an S-Corporation as the legal structure of your business, it is important to maintain good corporate records, meaning that your personal bank accounts should not be commingled with your business accounts. If that separation is not properly maintained, it could lead to the piercing of the corporate veil.
Limited Liability Company (LLC)
In Florida, Limited Liability Companies are required to file Articles of Organization with the Office of the Secretary of State. Just like S-Corporation, Florida LLCs must file annual reports every single year between January and May in order to maintain the existence of the business.
Limited Liability Companies are a hybrid between a Corporation and a Limited Partnership and they provide certain tax advantages that C-Corporations, for example, do not. Starting your business as a Florida LLC offers great flexibility. LLCs have the benefits of Partnerships when it comes to the management of the business, and the benefits of Corporations when it comes to limited liability. Florida Law provides that the members and managers of a Limited Liability Company are not personally liable for the debts, obligations, and liabilities of the business, which essentially means that their personal assets always remain protected against creditors.
Although other legal business structures are also recognized in Florida, most business owners generally choose a Corporation or a Limited Liability Company as the structure for their businesses due to the protection and benefits they offer. When choosing a legal structure, however, the unique needs of your business are the main factor that should be motivating your choice.
Hire a Jurado & Farshchian Florida Business Attorney for Assistance
Before starting a business in Florida, no matter how small, you must always consult with an experienced Florida Business Attorney to make sure you are taking the right steps and, most importantly, that you are not making costly mistakes that will negatively affect your business in the near future. When it comes to starting a business in the beautiful State of Florida, Jurado & Farshchian, P.L. is the best partner you can have.
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To get in touch with a skilled Florida Business Attorney today, call us at (305) 921-0440 or send us an email to [email protected]. Our list of satisfied clients is long – let us add your name to it!
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