There are many ways to establish a business in the state of Florida. According to Clearwater Business Law, the type of business structure will depend on the size of the company, how much initial capital is available, and whether or not there are plans for expansion.
The different types of business structures in Florida range from a sole proprietorship to LLC. Among the business structures in Florida, the most well-known is the sole proprietorship, which is the default option for businesses. It involves doing business under your personal name and responsibility. Sole proprietorships are easy to start, and there are no formalities required to register the business.
Let us see more into the most common business structures in Florida.
A corporation is a company or organization that is incorporated under the laws of Florida. Some of the benefits of incorporating include limited liability, increased access to capital, and protection from personal liability. Corporations are created by filing articles of incorporation with the Division of Corporations and Estates. Once filed, the corporation will receive a certificate entitling it to do business as a corporation. The common law right to contract between corporations and their employees is governed by the federal National Labor Relations Act (NLRA) and state labor laws.
A partnership can be an excellent way for those with little funds to start a company, as the costs involved are relatively low. In this type of business structure, two or more persons come together to form a business and share the profits and losses that result from that business’ performance.
- Limited Liability Company’s or LLC’s
When it comes to owning a business in Florida, there are many options. One of the most popular forms is the Limited Liability Company, or LLC for short. This structure provides flexibility and limited liability protection for owners because of the way it is set up. It has the characteristics of both a partnership and a corporation. A Florida LLC can be classified as either single-member or multi-member LLC.
- Sole proprietorships
A sole proprietorship is an easy way to start a business without having to go through the paperwork and formalities that are required for incorporating your business. This business structure allows you to keep your personal assets separate from your business assets, which reduces the risk exposure if the company goes into insolvency.