Are you starting a small business in Florida? This is an exciting time, but there is much more involved with this process than simply announcing you're in business. Whether you plan to launch a company on a specific date or you have a hobby or side hustle that has taken on a life of its own, there are certain steps you need to take during the formation process. The early stages of a business often determine its future success, and it's smart to proceed thoughtfully and carefully.
One of the most important decisions you will make during this process is the type of business you will have. Business structure determines several things for you and your small business, including taxes and your personal liability for business debt. You will find it beneficial to understand all of your options before making an important decision.
The right option
The right choice for a business entity depends on several factors. What types of products and services will your company offer clients? Do you have a business partner? How many employees will you hire? The answers to these questions and others will help you understand the right way forward. Types of business entities include:
- Partnership – This is when two or more people own a business together. All partners will share profits as personal income, and they are all personally liable for business debts.
- Sole proprietorship – This is a simple business structure, available to businesses owned by just one person. The owner is personally liable for all business debts.
- Limited liability company – With an LLC, owners pay income tax on company profits, but they are limited in their personal liability for business-related debts.
These are only a few of the options available to you. It's in your interests to fully explore all of choices you have and look at what will make the most sense for you long-term.
Help for your business
What you do now will affect your small business for years to come. As you walk through the formation process, you will find great benefit in working with an experienced attorney as you make important financial and legal choices.
If you are thinking about starting a company or are already in business, you may find it helpful to schedule a complete assessment of your business needs. This can help you better understand your options and what protections you need to secure success and stability well into the future.