When it comes to choosing the correct legal formation of a new business, there is not greater person to assist in making the decision than a skilled business attorney. A business formation, if not executed correctly from the start, can have significant tax implications and financial downfalls. In addition, it can determine what types of funding your business may be eligible for in terms of loans and grants in the future.
There are multiple types of business formations to choose from within the state of Florida, each having its own set of rules and requirements. Types include corporations, limited liability companies, partnerships, general partnerships, limited partnerships, and sole proprietorship. Matters to consider in any of these formations will include, but not be limited to, the type of business one will be operating, how many owners or partners the business will have, what type of insurance will be required for certain businesses, and which tax bracket one would fall in.
In addition to the above mentioned business formations, there are also others. They can include non-profits, cooperatives, estates, or municipalities. If not properly set-up, a business will be subject to tax liabilities that could even be significant enough after the first year to force a business to close.
Anyone who is considering venturing into a new business should not attempt to navigate set-up alone. Allow an expert to help, and set you up for success for many years to come. The first, and one of the biggest, mistakes any business owner can make is believing they know it all. A great business person never stops learning, and never stops growing.