#thethreebusinessstructuresyoumustchoosefrom
Determine the business structure.
In order to begin, you should decide upon the kind of business structure you want, and this will depend on what kind of business or sector you’re dealing with. Several fields of occupation may require the adoption of a certain sort of business setup. Moreover, consider if your organization can remain on those terms.
In Florida, businesses can take several forms such as Corporation, LLC, Partnership and Sole Proprietorship. It is recommended to consult legal and financial advisors when deciding the best structure for your business; Each business structure is explained more in detail below. Please note this artiicle is for informational purposes and is not in any way intended to be used as legal advice, that being said we always suggest our customers speak to an experienced professional before making a decision on which entity structure fits them best.
You’ll want to form a corporation to limit the liability of the owners and shareholders. While limiting liability can be a beneficial thing to do, the process of developing a corporation can be time-consuming and expensive. Establishing a corporation can be beneficial once your business is larger or if you plan to go public at any point in time.
A sole proprietorship is when an individual owns and runs a business by him or herself. When it comes to taxes, there is no difference between you and your business, so all taxes are submitted as one. Establishing a sole proprietorship can be beneficial if you are the only person involved in the business. An important downside to mention is that because you and your business are not separated, you as the individual carry all legal liability.
Limited Liability Company
With a Limited Liability Company (LLC), you’ll gain the limited liability that a corporation provides, but with the same tax process as a sole proprietorship. LLCs are great for growing businesses, as there are no limits to the number of employees you can have, but you can establish an LLC with as few as one employee. Ownership of an LLC is shared by all its members, either by percentage or by membership units, similar to shares of stock in a corporation. Both methods of establishing ownership grant each member the right to vote and to share in profits. Anyone can be an owner of an LLC, regardless of the capital that member contributes to the company.