How to Incorporate a Business in Florida
Research the need to incorporate., Choose a business name., Register with the IRS and get a tax ID number.
Step-by-Step Guide
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Step 1: Research the need to incorporate.
There are other legal structures to consider such as a Sole Proprietorship, Partnership or Limited Liability Company (LLC).
All have advantages and disadvantages in regard to protecting you from liability, saving money on taxes and sharing profits and losses.
Sole proprietorship – A sole proprietorship is owned and run by one person, and there is no legal separation between the individual and the business.
As a result, all profits, losses, and debts would be your responsibility.
A sole proprietorship is easy to form and you have complete control over your business.Partnership – This is a sharing of ownership between two or more people.
Partnerships are formed through an agreement between the partners and each individual partner is liable for his or her share of profits, losses, or liabilities.
However each partner is generally liable for the full debts of the partnership if one does not pay his or her share.
A partnership can work well if you need another person who has skills you might not have.Limited liability company (LLC) – LLC owners pay taxes on their share of profits (as defined in a business agreement) through their individual income tax returns and have to pay self employment tax.
They are protected from personal liability for the decisions and actions of the company. -
Step 2: Choose a business name.
A DBA (Doing Business As) is needed whenever you are doing business under a name other than your own.
If your business has a name other than yours, you will need to register that name as a DBA.
You can check the records of the Florida Department of State at Sunbiz.org to make sure your business name is not too similar to an existing corporation., Corporations file taxes separately from their owners at a corporate tax rate.
Your personal income will also be taxed when the company pays a dividend or makes a distribution to you.
Speak with your lawyer or accountant to find out how to file your corporate and personal taxes appropriately.
You can register online to obtain a tax ID number at https://federal-ein-online.com/apply?gclid=CKSRmqj4nsgCFYQRHwodfecDuw. -
Step 3: Register with the IRS and get a tax ID number.
Detailed Guide
There are other legal structures to consider such as a Sole Proprietorship, Partnership or Limited Liability Company (LLC).
All have advantages and disadvantages in regard to protecting you from liability, saving money on taxes and sharing profits and losses.
Sole proprietorship – A sole proprietorship is owned and run by one person, and there is no legal separation between the individual and the business.
As a result, all profits, losses, and debts would be your responsibility.
A sole proprietorship is easy to form and you have complete control over your business.Partnership – This is a sharing of ownership between two or more people.
Partnerships are formed through an agreement between the partners and each individual partner is liable for his or her share of profits, losses, or liabilities.
However each partner is generally liable for the full debts of the partnership if one does not pay his or her share.
A partnership can work well if you need another person who has skills you might not have.Limited liability company (LLC) – LLC owners pay taxes on their share of profits (as defined in a business agreement) through their individual income tax returns and have to pay self employment tax.
They are protected from personal liability for the decisions and actions of the company.
A DBA (Doing Business As) is needed whenever you are doing business under a name other than your own.
If your business has a name other than yours, you will need to register that name as a DBA.
You can check the records of the Florida Department of State at Sunbiz.org to make sure your business name is not too similar to an existing corporation., Corporations file taxes separately from their owners at a corporate tax rate.
Your personal income will also be taxed when the company pays a dividend or makes a distribution to you.
Speak with your lawyer or accountant to find out how to file your corporate and personal taxes appropriately.
You can register online to obtain a tax ID number at https://federal-ein-online.com/apply?gclid=CKSRmqj4nsgCFYQRHwodfecDuw.
About the Author
Sophia Walker
Professional writer focused on creating easy-to-follow home improvement tutorials.
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