Florida Business Formation Attorney
Starting and owning a business can offer people challenges, opportunities and flexibility that they wouldn’t experience as an employee. Growing a business into a thriving enterprise is also extremely rewarding. This will not happen, though, without a strong foundation.
Attorney Scott Haft is here to help you build that foundation. Scott is a business owner himself, having founded Haft Law Group in 2015. He knows firsthand the difficulties entrepreneurs can face – and the rewards they can reap – and uses his experience to guide them toward choices that ensure their ventures succeed.
Different Types Of Business Structures
The two most common business structures are corporations and limited liability companies (LLCs). Both corporations and LLCs are owned by one or more parties and, in most instances, offer owners protection from personal legal liability. The similarities between the two, though, end there.
For one, corporations have a more complex business structure than LLCs, which can make them more suitable for large-scale endeavors. Furthermore, corporations are owned by shareholders, whereas LLCs are owned by members who each hold a percentage interest in the company (members may have equal or different ownership percentages). Corporations also have less flexible tax arrangements than LLCs since there are no specific tax classifications for the latter.
When corporations draft their documents properly at the onset of their formation, the entity can provide a shield against personal liability. However, improperly structured corporations may leave individual stakeholders at risk of personal liability. Sometimes, granting a minority interest in your newly-created corporation or LLC to another corporate entity can shield members or stakeholders from personal liability.
While corporations and LLCs represent the bulk of businesses, other business structures exist, including cooperatives, partnerships and sole proprietorships. With an attorney’s assistance, you can determine which structure is right for your new venture.
Essential Documents For Business Formation
Documents are arguably the least fun aspect of business formation, yet one of the most essential. Entrepreneurs may feel overwhelmed by all the paperwork they must draft and sign, which may include:
- Articles of incorporation
- Articles of organization
- Board meeting minutes
- Board resolutions
- Business name reservations
- Bylaws
- Partnership agreements
- Shareholder buy-sell agreements
- Stock certificates
Some of these documents are specific to corporations, and others are specific to LLCs, yet most are essential for both. A lawyer can help you determine which ones you need to draft.
Steps For Starting A Florida Business With Legal Guidance
Many people want a simple checklist when they start a business in Florida. That makes sense. The first steps may look easy, but each one can affect ownership, liability, compliance and daily operations. Working with an attorney can help you understand those issues before they cause problems later.
If you are getting ready to start a business, the process often includes the following:
- Entity selection: Choosing an LLC, corporation or partnership based on structure, tax treatment and risk
- Name verification: Checking whether the business name stands apart in Sunbiz records before filing
- State filing: Sending formation documents to the Florida Division of Corporations
- Agent designation: Naming a registered agent with a Florida street address to receive official papers
- Tax identification: Getting an EIN from the Internal Revenue Service when needed for taxes, hiring or banking
- Financial setup: Opening a separate account and creating a basic bookkeeping system
- Regulatory review: Looking for needed city, county or industry-specific approvals before opening
- Coverage planning: Reviewing insurance options such as general liability, professional liability or workers’ compensation when needed
These steps do more than get a business off the ground. They can also shape how the company runs, grows and handles legal issues later. Legal guidance can help owners make informed choices from the start.
Addressing Common Florida Formation Questions
Starting a business often brings up practical concerns, including the following:
Do I Need An Operating Agreement If I Am The Only Owner?
Florida law does not require a single-owner LLC to file an Operating Agreement with the state. Even so, a written agreement can still help. It can set basic rules, support clear records and address future issues such as management or ownership changes.
What Is The Annual Report Deadline In Florida?
Certain Florida business entities must file an annual report to stay active with the state. The filing period runs through May 1. If the report is late, a $400 fee applies. If the business does not file by a later state deadline, it may face administrative dissolution.
What Is A Registered Agent, And Can I Be My Own?
A registered agent is the person or business named to receive legal and state papers for the company. Florida requires a physical street address in the state. A P.O. box does not work. In some cases, an owner or another principal may serve in this role.
Get Business Formation Guidance Today
As exciting as starting a business can be, entrepreneurs must be careful to set theirs up correctly and draft the necessary documents for success. At Haft Law Group, Scott can assist clients with both matters and can better help them understand their options during a consultation. Book yours by sending him an email.