Incorporating in Florida
Starting a Florida Business
The State of Florida is an excellent business climate. Every aspect of doing business has been made easy allowing new entrepreneurs to reserve their new company name, incorporate, file required documents, and pay their taxes online. And if you need help the State actually has knowledgeable professionals to answer the phone.
If you're ready to incorporate in Florida choose the type of corporation you want to form below to get started or read about the different corporate entities available in Florida.
Florida Business and Incorporation Topics:
Combine the pro business attitude of Florida with the nations 4th largest population and labor force and the 15th largest economy in the world and you get a great place to start and succeed in business. This guide will walk you through the process of incorporating in Florida and provide a variety of resources to make it easy.
Why is Florida a great state to incorporate in?
The primary benefit to incorporate in Florida is no personal income tax. In some states, corporations are charged a 5.5% tax on federal taxable income over $5,000. If you incorporate in Florida business and choose the "S" status, you will not have to pay the average corporation tax of 5.5%.
Florida "S" corporations are not taxable entities. This means they're not required to file state income tax returns after the first year resulting in saved tax dollars.
Another great benefit is that Florida doesn't have minimum capital requirements for incorporating your business. Some states require a minimum of $1,000 capital to start your business but Florida does not.
Incorporating in Florida is much simpler than other states because the director and officers can all be the same person. For example, the Director, President, Secretary and Treasurer can be one person.
Florida is a "business friendly" state with some of the lowest annual fees and fewest corporate reporting requirements.
What is a Florida Corporation and what are the Benefits?
A Florida corporation is a legal entity that exists separately from its owners. You can start a business in Florida once articles of incorporation are completed properly, file to the state, pay incorporation fees, and receive acceptance by the Florida Secretary of State. A corporation is more complex than a sole proprietorship or a partnership but it has many advantages over these business structures.
A corporation is regarded as a separate legal entity and will normally shield its owners from personal responsibility for business losses. Whereas in a partnership or sole proprietorship the owner's personal assets can be used to pay debts of the business.
A Florida corporation has a life of its own and does not dissolve when ownership changes. In addition, although a corporation may have multiple owners, this is not required and one person may individually establish and own a corporation.
When incorporated, you can also raise capital by selling stock. Health benefits and retirement funds can be easily set up for officers and employees which are then deducted from the corporation. If you can elect S corporation status, you can avoid double taxation.
What type of legal business structures are there?
There are four main legal structures to choose from: Corporations, Limited Liability Companies, Sole Proprietorship, and Partnership
Florida Corporation types and pros/cons