Starting a Business
How do I incorporate?
"Articles of Incorporation" must be filed with the Florida Secretary of State/Division of Corporations. Several options are available for incorporating a business. Individuals can prepare the necessary paperwork on their own pay or pay a professional to assist in the process. The minimum filing fee is $70.00. The Department of State website www.sunbiz.org provides additional information.
How do I get my tax identification number?
There are two commonly referred to "tax identification numbers". In most cases, both identification numbers are required. One is the federal tax identification number (EIN Employer Identification Number) which can be obtained by filing form SS4 with the IRS. The Florida sales tax identification number is obtained by filing form DR-1 with the Florida Department of Revenue with a $5.00 filing fee. (This number also serves as a "reseller's certificate number")
What is a "hot" business in Florida?
"Hot" businesses are only hot if they work for the individual. Choosing to open a business is a personal decision that requires hard work and long hours. Part of the decision making process should include a self assessment to determine interests, hobbies, experience, resources available, profitability potential, etc... Choosing a business because it was successful for someone else is risky business.
Are home-based businesses legal?
Local city and county regulations closely regulate which activities can be carried out at residential locations. Home-based businesses have increased significantly in the past decade representing a cost-effective alternative to leased, rented or owned office/retail space. Inquiries regarding the legality of home-based business should be directed to local business tax licensing department of your county of city.
What is a "sub chapter S" corporation?
A sub-chapter S corporation is the legal equivalent of a regular "C" corporation under state law. Once a corporation is formed, the owners may have the option to elect to have corporate profits taxed under "sub-chapter S" of the Internal Revenue Code. The result of this election is that corporate profits are taxed directly to the owners (on their Form 1040) at the Federal level. Owners escape double taxation of distributions and, in the state of Florida, state corporate taxes levied on "C" corporations.
What licenses are required to start and operate my business?
All businesses need occupational licenses. At least one license for each city in which the business has a physical location and at least one for each county in which the business has a physical presence.
How do I start my business?
The first recommended step is to carefully conceive your business by developing a comprehensive business plan. If financing is needed for the business, most lenders will require some form of a business plan. The business plan will also serve as a "road map" to success. It is advised that no legal documents be filed for the business (i.e. Articles of Incorporation % occupational licenses) prior to writing a sound business plan and identifying financial resources. Opening a business is easy; closing a business for lack of planning is painful and costly.
Do I need to advertise my intention to register a fictitious name for my business?
In accordance with 15.16(6), Florida Statute, effective June 9, 2001, it is no longer a requirement to advertise the intention to register a fictitious name prior to registration. The application for new fictitious names can now be completed and paid for by credit card online by visiting Website www.sunbiz.org Renewals are still handled in the traditional fashion.
SBDC @ Palm Beach State
3000 Saint Lucie Ave. Ste AD408
Boca Raton, Fl 33431
t 561.862.4726 | f 561.862.4727
© 2009 Small Business Development Center at Palm Beach State College
t 561.862.4726 f 561.862.4727 | sbdc@palmbeachstate.edu
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