Do you want to know How to Start a Small Business in Florida? Good for you! Florida is a great place to do business. It has nice weather, many people, and low taxes. But before you start, you need to do some things. Here are the main things you need to do How to Start a Small Business in Florida:
Pick a Type of Business
The first thing you need to do is to pick what kind of business you want to have. The most common types of businesses are:
Sole proprietorship:
This is the easiest and most common type of business. The only owner and boss of your company is you. You don’t need to register with the state, but you are responsible for all the money and problems of your business. You also report your business money and costs on your personal tax return.
Partnership:
This is a company where management and ownership are shared by two or more people. Options for partnerships include general partnerships, limited partnerships, and limited liability partnerships. A partnership agreement that specifies the responsibilities of each partner must be written, and your partnership must be registered with the state. You also need to get an Employer Identification Number (EIN) from the IRS and file a separate tax return for your partnership.
Limited liability company (LLC):
This combines elements of a corporation and a partnership. As well as drafting an operating agreement outlining your LLC’s rules and regulations, you must register your LLC with the state. Additionally, you must apply for an EIN with the IRS and decide whether you want to be taxed as a corporation, partnership, or sole proprietorship.
Corporation:
This is a distinct legal entity from its owners (shareholders), who are separate. Your corporation must be registered with the state and have articles of incorporation that describe its name, goals, and organizational structure. To run your corporation, you also need to select a board of directors and officers and obtain an EIN from the IRS. Additionally, you must pay corporate income tax and file a separate tax return specifically for your corporation.
Pick a Name for Your Business
The next thing you need to do is to pick a name for your business that is unique and catchy. Your name should show your brand and make you different from your competitors. You need to make sure that no one else has your name in Florida or anywhere else. You can check if your name is free by searching the Florida Division of Corporations website or by using an online name search tool.
If you want to use a different name than your legal name (for example, if you are a sole proprietor or a partnership), you need to register a fake name (also called a trade name or DBA) with the state. This will let you open a bank account, get licenses and permits, and advertise your business under your fake name.
Register Your Business with the State
Depending on the type of business you run, Florida state registration may be required. By doing this, you’ll be able to legally operate your company throughout the state. For this reason, you can use the Florida Division of Corporations website to register your business by mail or online. However, the fees are different depending on what type of business you have:
- Sole proprietorship: No fee
- Partnership: $50 per partner
- LLC: $125
- Corporation: $70
Get Your Employer Identification Number (EIN)
An EIN is a number that the IRS gives you to identify your business for tax reasons. You need an EIN if you have workers, are a partnership or a corporation, or have some type of tax duties. Therefore, you can get an EIN online for free through the IRS website:
Open a Bank Account and Credit Card for Your Business
In order to keep your personal and financial affairs apart, you should open a business bank account and credit card. This will help you control your cash flow, monitor your spending, and get ready for tax season. You will require the following things in order to open a bank account or credit card for your company:
- EIN number
- Registration under your company name or under a false name
- Your organization’s or incorporation’s articles, if applicable
- Your partnership agreement or operating agreement, if applicable
Get All the Licenses and Permits You Need
Before you open a business in Florida, you need to be aware of the possible licenses and permits that you may need to obtain from the federal, state, county, or city levels depending on the type of business you have, where you work, and what you sell or do. These may include
Business license:
This is a license that lets you do business in a certain place. You can check with your county or city office to see if you need a local business license.
Professional license:
This is a license that shows your skills and knowledge to do some jobs or activities. You can check with the Florida Department of Business and Professional Regulation to see if you need a state professional license.
Sales tax permit:
You may collect and pay sales tax on goods and services sold in Florida with the help of this permit. On the website of the Florida Department of Revenue, you can apply for a sales tax permit either online or by mail.
Environmental permit:
This license regulates how your company affects the environment, including the air, water, waste, and hazardous materials. To find out if you require an environmental permit, contact the Florida Department of Environmental Protection.
Health and safety permit:
Furthermore, a health and safety permit is required for some businesses. This permit guarantees the health and safety of your staff, clients, and the general public. If you work in the food, beverage, drug, animal, or medical industries, you might need this. For a health and safety permit, you can inquire with the Florida Department of Health.
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- Starting off, based on the type of business you have…
- Next, you may also need a professional license…
- Another permit that you may need is a sales tax permit…
- Additionally, if your business has any environmental impact…
- Finally, for the health and safety of everyone involved…
That’s It!
It can be exciting and profitable to Start a Small Business in Florida, but it also requires preparation and effort. You can make sure your company is legitimate and prepared to serve customers by carrying out these actions. Good luck!
