Florida offers a large population, several industries for small businesses to grow, and a year-round climate for visitors to the state.
Starting a business in Florida may seem simple, but you should still know a few things. Here are the steps to follow if you want to start a business in Florida.
Benefits of Starting a Business in Florida
Becoming a small business in Florida can be very beneficial. Several large cities would make great starting locations. As a whole, the state offers the following:
Florida also offers these benefits to small business owners:
Florida offers property tax benefits for small businesses:
Florida offers sales and use tax benefits for small businesses:
Florida offers tax benefits at the state level for small businesses:
Finally, the state of Florida has several sales and use tax exemptions. Depending on your business structure, and small business idea, this can also be a great benefit.
What Are The Steps to Start a Small Business In Florida?
If you want to know how to start a small business in Florida, follow these steps.
1. Choose a Business Idea
The first thing you should do to start a new business in Florida is to choose a business idea. A great way to do this is to write a business plan that will guide you as you develop your small business.
You can choose from two business plans: a lean plan and a traditional plan. While both plans can provide insight, there are some differences.
In either case, you’ll write as many details about your small business as you think you’ll need.
2. Choose a Business Name
Second, you’ll choose a business name. Your business name can be your legal name, or it can be a name you’ll do business as (or a fictitious name). This name must:
Regardless of your business name, there are things to consider:
3. Choose a Business Entity
Third, you’ll choose a business structure. You can choose from the following business entities in Florida:
You can also open your business entity as a general partnership or as a limited partnership.
4. Register Your Business
After you choose your business entity, the next step you’ll do is register your business. You should have an Employer Identification Number (EIN) before this step. If you are wanting to start an LLC in Florida, having a Florida registered agent is also essential. Next, you’ll also register your new business with the city or county where you’ll operate your business.
Finally, you’ll register your small business with the Department of State. Then, you’ll be ready to proceed to the next step.
It is important to note that if you plan to do business with a name different than your legal one, you must also register for a Florida DBA.
5. Understand the Tax Implications
There are several small business taxes in Florida you should be aware of.
6. Acquire the Necessary License and Permits
Florida has two licensing agencies for small businesses:
Also, business permits are available for new businesses. You may need to contact the city or county where your small business will operate for more details.
7. Apply for Insurance
Florida has several insurance requirements that small business owners should know. First, the exact insurance you’ll provide as an employer will depend on your industry.
There are several optional small business policies:
8. Comply with Reporting Requirements
Florida has annual reporting fees that small businesses must pay. These fees will vary based on the business entity chosen. The fees for annual reports are:
9. Open a Business Bank Account
If you are opening a small business in Florida, it is important that you open your own business bank account. This account will keep business finances separate from personal finances and allow you to keep track of income and expenses easily.
To open a business bank account in Florida, you must have your business's legal documentation and identification on hand. This includes your articles of incorporation or articles of organization, Florida business license, and Employer Identification Number (EIN). When choosing a bank, it is essential that you research different options to find one that fits your needs and offers low fees for business accounts.
What Else Should I Know?
There are a few things to consider before starting a Florida business.
First, Florida is a very spread-out state. There are few large cities in the panhandle but several large cities on the peninsula. Where you decide to open your small business within the state can allow you to have an advantage.
Second, the population is also significant when considering where to open your small business in Florida. The northern region of the state isn’t as populated as the state’s central and southern regions. Depending on your business, this may be a benefit or a disadvantage.
Third, your small business may qualify for corporate income tax incentives. In Florida, your small business can be eligible for:
Let Us Help You with Your Small Business
Starting a small business in Florida can be a daunting but exciting prospect. Consider working with the tax and entity formation professionals at 1-800Accountant to help you turn your dream into a reality.
This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. 1-800Accountant assumes no liability for actions taken in reliance upon the information contained herein.