If you’re planning to open a business in Florida, consider forming a limited liability company. This type of business structure offers several benefits to owners.
Besides tax advantages, LLCs provide personal asset protection and a greater level of flexibility than corporations. For these reasons, many entrepreneurs choose to form a limited liability company in Florida.
Choosing a business name
Choosing a business name is one of the most important steps you can take in starting your Florida LLC. The name you choose will determine your brand’s identity, and it can also influence the growth of your company.
In addition, your choice of name may be protected by trademark law. Conducting a trademark search before naming your business can help you avoid future legal headaches.
Registering your business
In Florida, you need to register your business in order to operate legally. This includes obtaining an Employer Identification Number (EIN), getting a license, and paying business taxes.
You can apply for an EIN online or through fax, mail, or telephone. An EIN functions like a Social Security number for your business and provides a unique number for your business, allowing you to file federal tax returns.
Creating an operating agreement
The operating agreement is a crucial document for LLCs. It provides clarity on how the business will be run and how profits will be distributed among members.
Most businesses in Florida formed over the past decade are limited liability companies or LLCs. These entities were created to fill the gap between partnership and corporation liability protections.
Filing articles of organization
Filing articles of organization is the next step in creating an LLC. These documents outline the name, purpose and other details of your business.
Several states offer editable PDF forms for filing articles of organization. This takes the hassle out of creating them from scratch.
Getting an EIN
Getting an EIN is one of the most important steps for a Florida LLC. It will help you keep your business and personal taxes separate, as well as make it easier to apply for certain financial accounts and licenses.
You can get an EIN online or by mail or fax. The online application is the fastest and most convenient way to get an EIN.
Opening a business bank account
Getting a business bank account is an important step for establishing your LLC’s financial presence. It also helps to separate your business finances from your personal expenses and make tax calculations easier.
To open a business bank account, you’ll need to have the right documents on hand and meet with a banker. Different banks have different requirements, so it’s a good idea to call ahead and ask.
Obtaining a certificate of status
If you’ve filed for a limited liability company (LLC), you’ll need to get a certificate of status from the Florida Department of State. This document proves that your LLC is in good standing and has met all of its requirements.
You can get a Certificate of Status by mail, online, or in person. You can pay with a check or money order, payable to the Florida Department of State, or use a credit card or prepaid Sunbiz E-File account.
Obtaining a federal tax ID number
Obtaining a federal tax ID number, also known as an EIN, is the next step after registering your Florida LLC. This nine-digit number is similar to a Social Security number and helps distinguish your business from your personal finances.
All multi-member LLCs and those that hire employees must get an EIN. However, single-member LLCs may opt to use their SSN in place of an EIN for privacy purposes.
Getting a business license
A business license is an official document that permits you to operate a business in a particular area. It comes from a state, county or city government agency.
Many small businesses need to obtain a business license. These include tattoo parlors, construction companies and more.
Getting a tax ID number
Once your business is formed, you’ll need a tax ID number (also called an EIN) to start filing taxes. This nine-digit number is similar to the social security number for individuals, but it’s also used by businesses to pay taxes and open bank accounts.
Almost all types of businesses require an EIN to file taxes and hire employees. In addition, banks often require an EIN when opening a business bank account or applying for small business loans.