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Setting You Up for Success
You have the product or service, you’ve got a business plan, and you’re ready to start your own company. The business structure that you choose to create affects everything, from daily operations to what kind of taxes you have to file. Starting your business correctly is essential, as filing paperwork incorrectly or with missing information could lead to expensive delays.
A business formation attorney on our team is ready to help you create the right business structure. We can help you decide on a structure, weighing the pros and cons of each option. We can also help you gather documentation, write a business plan, file paperwork, and more.
Bloodworth Law, PLLC is here to help you create your business with the best foot forward. We understand how important it is to protect your livelihood, and we are confident we can help. To learn more about our services, call our law offices at 407-449-8958.
What Are the Different Types of Business Formations?
The first thing to decide when creating a business is what kind of business formation you want to choose. There are many different types of business entities, some of which may fit your situation better than others.
The different types of business formations include:
Sole Proprietorship
A sole proprietorship is the most straightforward type of business in Florida. In a sole proprietorship, the business owner is responsible for all liabilities and debts of the business. While you may not need to file with the state formally, you do have to obtain local licenses.
Limited Liability Company (LLC)
An LLC offers business owners protection from debts that the business takes on. In an LLC, a business owner’s personal assets are separate from the business’ assets. LLCs have fewer requirements than corporations.
General Partnership
When two or more people join together to create a business for profit, they automatically form a general partnership. This type of partnership carries personal liability and may offer fewer protections than LLCs.
Corporation (C Corp)
A corporation is a legal entity with liability protection for its owners and shareholders. Corporations are subject to corporate income tax and can issue stock.
S Corporation
S corporations can automatically pass income to shareholders. This type of business offers tax benefits and avoids double taxation. The IRS gives S corporations status.
Professional Limited Liability Company (PLLC)
Licensed professionals like lawyers and doctors can register PLLCs. They provide liability protection, though they do come with some restrictions.
Cooperative (Co-op)
In Florida, co-ops are businesses owned by a group of individuals for mutual benefit. Agriculture, services, and retail businesses can become co-ops and be governed democratically. Co-ops come with certain restrictions and may require additional registration.
Nonprofit Corporation
Nonprofit organizations are tax-exempt. Scientific, educational, charitable, and religious endeavors often qualify for nonprofit status.
Limited Liability Partnership (LLP)
LLPs have at least one general partner with unlimited liability and one limited partner with restricted liability. LLPs offer liability protection to all partners within the business.
What Factors Influence Your Business Formation?
Deciding what kind of business to form can impact the future of your company. Our team can help you pick out a business formation that suits your needs.
There are various factors that might influence your decision, including:
Liability
The type of business you create will impact how liable you are for your business debts and obligations. If liability is important to you, choosing a structure that separates you from your business is probably the right choice.
Control
Maintaining control over the business is a major consideration for many people. If there are multiple owners involved, your business structure will impact how much of the business you own.
Administration
Paperwork and legal requirements differ between business entities. Sole proprietorships and partnerships typically carry the least amount of administrative work, while corporations have the most.
Taxes
The structure of your business will affect what taxes you have to pay and when. Pass-through entities, like LLCs, partnerships, and S corporations, don’t pay a separate business tax. C corps, on the other hand, will pay a separate tax.
What Do New Business Owners Need to Do?
Choosing a business entity type is only one small step in creating your business. There are many things that new business owners need to do before they can start their company. Some of these tasks are easy to tackle yourself, but others may require assistance from a legal professional.
If you’re a new business owner, you may have to do the following:
- Choose a business name unique from other businesses
- Appoint a registered agent as required by Florida law. A registered agent receives official correspondence about the business
- File Articles of Organization or Articles of Incorporation and pay the accompanying fees
- Apply for relevant permits and licenses
- Ensure that your business activities are permitted by your zoning areas
- Request an IRS Employer Identification Number (EIN) if you will be paying wages from your business
- Draft bylaws (as a corporation) or an operating agreement (as an LLC)
- What Does a Business Formation Lawyer Do?
When you’re forming a business, there are so many factors to consider and keep track of. Having a business formation lawyer on your side ensures that you are taking the right steps to protect your business and operate it legally as soon as possible. By working with our team, you can avoid expensive delays and fines that could impact your bottom line.
As your legal team, we can do the following:
Help Choose a Business Structure
The right business structure is essential when considering the future of your business. Picking the right structure can be difficult, especially if you are not familiar with the various entities. We can advise you on the pros and cons of each business structure and tell you which one fits your circumstances best.
Give Industry-Specific Advice
Our team is experienced in Orlando and Florida business laws. We can give you specific legal advice regarding your industry and how your business will operate in the city and state. We can also help you identify relevant permits and licenses you will need.
Draft Legal Documents
When you create a business, you are required to prepare a range of legal documents, including intellectual property registrations, business registrations, and more. We can help you draft these documents and negotiate the terms of any contracts you sign so they are in your best interests.
Identify Your Tax Obligations
Different businesses have different taxes they must pay. Failing to identify your tax obligations can lead to legal complications in the future. Taxes are complex, so having a professional on your side is essential to ensure your business is in compliance.
Navigate Employment Law
Many business owners have no experience hiring employees. If you choose to hire individuals for your business, there are many employment laws and regulations you must abide by. We can help you create airtight employment contracts to protect your business and your employees.
Draft Employee Handbooks
If your business has employees, the right handbook can offer you protection from legal troubles. Similarly, your HR policies can be valuable in preventing any problems in the future. Our experienced team will help you draft and create your employee handbook to protect your business.
Can an Attorney Help After the Business is Formed?
Our business formation lawyers know that starting a business is only one piece of the puzzle. Once your business is up and running, there are many more legal considerations you may have. Our team offers business law services to assist you throughout the lifetime of your business.
No matter how long your company has been around, we can help you with the following:
- Breach of contract: All parties involved in a contract are legally required to fulfill their obligations. When one party does not, you can sue for damages related to the breach
- LLC membership disputes: Members of an LLC may bring up disputes if they are not happy with their business arrangement. We can represent you to protect your best interests and your business
- Business succession plans: Having a succession plan protects your business in the future when you want to retire. The right plan allows you to seamlessly pass on the business to a relative or employee
- Mergers and acquisitions: Merging or acquiring a business involves a lot of legal legwork. Our team will take care of the legalities so you can focus on managing your new venture
Should You Contact Our Team Today?
Creating a business brings you one step closer to the next chapter of your life. Forming the business can be challenging, especially if you don’t have a legal background. By working with our team, you can start your business the right way and without delays.
Bloodworth Law, PLLC has extensive experience working with Florida business owners. We are here to guide you through the process of creating your business so you can get to work quickly. For more information about how we can help you, call our law firm today at 407-449-8958.