Housing the fourth-largest economy in the U.S., the sunny state of Florida is a location where several startups and small businesses thrive. It is an essential part of Florida’s economic landscape, which makes up about 99% of all industries and employs 3.3 million individuals.
For someone who is thinking of setting up a business, these numbers make it all the more promising and encouraging. However, like many individuals wanting to test the waters in entrepreneurship, one would typically ask what goes into starting a business in Florida?
Since the answer to that question varies from one state to another, let’s dive deep to find out the essentials before starting a business in Florida.
Decide on the Business Structure
For most startups and small businesses, registering an LLC may be the best way to go. Compared to other business structures, LLCs are easier to set up and manage, and they have favorable tax treatment. If you want to know how much does LLC cost in Florida, it costs as little as $125 for state filing.
Business Name
When picking out your business name, it needs to be distinguishable. Make sure that it is not the same as another business. Checking your proposed business name at the Division of Corporations is the best way to determine if the name is available for use or otherwise.
Business Registration
When starting a business in Florida, any person or business entity is required to register a “fictitious name,” also known as a “doing business as” (DBA) name. This is done with Florida’s Department of State before conducting business in the state. According to The Fictitious Name Act (s.865.09, F.S.), an LLC business name should not be the same as what was registered and will require a fictitious name.
Apply for an Employee Identification Number
The Employer Identification Number (EIN) allows the business owner to open a business bank account, establish a business line of credit, hire employees more efficiently, and apply for business licenses and permits. More importantly, this is used to identify a business in its federal tax filings.
Bank Accounts
When starting a business, it is always a good idea to maintain your business and personal finances separate. This can avoid issues during tax time or during audit time. Seek out banks that offer specialized account types for businesses that can provide value to a new company, such as longer billing cycles or higher credit limits.
Business Licenses and Permits
Licenses or permits will vary depending on the type of business you operate and its location. Checking the Florida Department of Business & Professional Regulation website is the best way to know which licenses or permits you need to accomplish to operate in Florida legally.
Conclusion
If you are thinking of setting up your business in Florida, you may just be in the right location. Aside from low filing fees, most of the registration process can be accomplished online, and tons of local resources are available. More importantly, equipped with the basics and determination, your future business venture might just be sunnier than what you expect.