The Sunshine State is known for many things, including excellent year-round weather, a busy, tourism-based economy, and precious outdoor resources. It’s also one of the most attractive places to start a business.
There are numerous advantages to starting a business in Florida over other states. For example, it has a low tax burden with no personal income tax requirement. Corporations in the state only pay 5.5% to the state in taxes as well. Also notable, Florida’s lenders offer a wide range of competitive loans, helping to fund new business development.
Florida is home to 21.9 million people, making it the third most populous state. It also has one of the largest economies in the country (and in the world itself), with a strong focus on tourism and agriculture. Florida is also home to numerous large company headquarters, including Royal Caribbean Cruises, Tyco, Darden, and others. All that shows just how valuable starting a business in Florida can be. In the realm of digital entertainment, for example, the burgeoning market for online casino Malaysia showcases the global reach of internet-based businesses that cater to a diverse array of international customers, reflecting the state’s economic dynamism and its embrace of innovative, lucrative sectors.
If starting a business in the Sunshine State is your goal, and it certainly should be a consideration, you’ll need to make some key decisions and take a few actions to make that possible. As an aspiring business owner, take a look at each of these steps in the process.
#1: Define Your Business, Research Opportunities, and Build a Business Plan
Yes, all of this goes into the first step. Florida is noted as a very beneficial place to start a business in the U.S., but there is also a lot of competition as a result. Before you dive in and start to open a business here, then, you need to do the following.
- Research: Find out who the competition is in the state, especially at the local level, and what they have to offer. Learn about your customer base, especially if it is local, and what they want.
- Define your business: Now that you have some idea of what type of business competition there is, define what your business is and how it will operate. Specifically, answer the question, “How is my business different from the competitors?”
- Develop a business plan: You are likely to get requests for a business plan from any lender you apply to, as well as from any other stakeholder. Most Florida lenders require that you have a well-defined plan with market research and competitor analysis.
#2: Choose Your Business Formation
In Florida, it’s typically recommended that companies become a Limited Liability Company (LLC) or a corporation if they are large enough to do so. You can also remain a sole proprietor and operate as a partnership under state law. Florida levels no income tax on you, which means if you remain in either of these business formations (partnership or sole proprietorship), you don’t have to worry about high-income tax.
However, it’s often recommended that companies become LLCs because doing so helps to create a division between your personal and business assets. Florida is also a litigious state, which means people often file claims for liability and other losses against companies. Having an LLC in Florida protects your personal assets from such claims.
#3: Establish Your Business Name
A business name sets your company apart from others and creates a way for people to remember you. You need a name that’s unique from others.
To start this search process, use the Division of Corporation’s website to search for names similar to the one you are considering. That makes it a bit easier for you to begin this process.
The state requires that, if you are forming an LLC in Florida, you include some form of that recognition in the name. This could include using LLC, L.L.C., or other versions of it. Also, the state does not allow businesses to have any name that makes them seem associated with the state directly or use terms like “bank,” “attorney,” or “university” unless appropriate.
#4: Register Your Company in Florida
No matter where you are located, you can register your business in Florida by following a few simple steps. You can find all the necessary information and all forms necessary to do so in the Forms & Fees section of the Department of State’s website.
If you plan to form an LLC in Florida, follow the state’s steps to do so. You can find the Articles of Organization forms on the state’s site to fill out and submit. You will also need to choose a Registered Agent to represent you for all legal matters in the state. They must have a physical address in the state.
There are fees associated with this process. For a new Florida business, you can expect to pay:
- $100 as a filing fee for your Articles of Organization
- $25 Registered Agent fee
- $10 (optional) if you want a certified copy sent to you
You will also need to submit an annual report to the state, typically costing $138.75 if done in the first portion of the year.
The state uses your Employer Identification Number (EIN) to identify your company. This is much like your personal Social Security Number. You obtain this from the IRS and it only takes a few minutes to set up at no cost. You will need this number to file taxes as well.
#5: Set Up a DBA
If you are doing business under a name that is different from what you are listing on your Articles of Organization with the state, you will need to complete a DBA form, “doing business as” form, to alert the state of this. In Florida, this is also called a “fictitious name.”
This form is necessary if you are operating under a name that is different from the name you registered with the state. You can submit one on the Department of State’s website for a fee of $50. You will need to renew this each year.
#6: Obtain Necessary Business Licenses
Florida’s state laws on business licenses must be followed if you are to operate in the state legally. What makes this a bit more challenging is that each county or city could have its own licensing requirements for you to consider.
Not all businesses need a state-issued license. Some do, though, including those that are affiliated with the following organizations as listed by the Florida Department of Business and Professional Regulation:
- Alcohol and tobacco companies
- Construction industry company’s auctioneers
- Architecture and interior design companies
- Yachts and ships
- Engineers
- Farm labor
- Cosmetology
- Harbor pilots
- Hotels and restaurants
- Real estate commissions
The list goes on. If you plan to operate a business in any of these or other industries, follow the steps on the site to find all licensing requirements and regulations.
If your business falls under any sector of the health industry, you will need to register your business with the Florida Department of Health. This includes everything from acupuncture specialists to physical therapists and tanning facilities.
Once you tackle those tasks, you’ll need to find local business license requirements. You can turn to the local Chamber of Commerce for some insight here. You can also use the Open My Florida Business website, sponsored by the state, to help you find the associated organizations in each city, including building services, planning and development organizations, economic development support, and much more.
Set Up Your Finances in Florida
Before you open the doors to your company, you also need to establish your finances in the state. Florida’s banking industry is large, and just about any brick-and-mortar bank in the state will be able to help you establish your business checking and savings accounts to use. You will also want to set up your accounting at this time. If you’re considering affordable liquidations, visit https://affordableliquidatons.co.uk/ for more information.
You will need to set up an account with the Florida Department of Revenue to tackle all of your taxes and to ensure you are meeting all tax requirements, including paying employees and sales tax.
Get Your Business Set Up and Operational Today
As a business owner, it’s up to you to ensure you are meeting all of Florida’s state requirements for business establishment and management. Luckily, there is a lot of help available to you during this process. Once in place, you can count on Florida to provide you with some of the most exciting opportunities to connect with customers, not just those that live in the area but often the millions of tourists that come from around the world.