Florida, a beautiful and developed state of United States of America, also called sunshine state is USA’s third-biggest state by population and covers hundreds of miles of beaches, glamorous cities, nature’s beauty. Along that state has no state income tax and very few property taxes. With this advantage of being some of the lowest income taxes charging state and 2nd lowest tax burden for investors, starting a business for them would be a great choice, both for investors as well entrepreneurs.
Also, Florida has a very high density of startup businesses in the US, with more than 100 startups in every 1000 firms. Entrepreneurs from all over the world are watching Florida as one of the best hubs for starting businesses. But before starting a business in Florida, let us see the steps or processes that need to be followed for the formalities of fees, paperwork to be done before starting a business in Florida –
1. Choose entity type – 3 main categories of business entities are the choices to choose from for-profit corporation, limited liability company (LLC), or nonprofit corporation. A for-profit corporation is a limited-liability company that pays corporate income tax and is owned by a group of persons. An LLC is comparable to a corporation, except that its profits are recorded on individual tax returns and it does not pay corporate income tax. A nonprofit company is a tax-exempt organization that is most commonly used by churches and charities. A partnership, which can be a general partnership, a limited liability partnership, a Florida limited partnership, or a foreign limited partnership, is another corporate kind.
2. Register your company – One can find all the necessary forms to register for online business at the SunBiz website, and many of them can also be submitted online. Fee for nonprofit corporations is: There are three fees: $35 for filing fees, $35 for a registered agent designation, and $8.75 for a certified copy or certificate of status. As of 2019, the registration fees for an LLC are $100, $25 for a registered agent designation, $30 for an optional certified copy, or $5 for an optional certificate of status.
3. Register as DBA – It is optional, However, if you want to do business with a corporation that doesn’t have the same name as you, you’ll need to register a fake name, often known as a DBA (doing business as).
Starting business In Florida-set the business to pay taxes
- Federal business taxes include income tax, estimates tax, self-employment taxes, and excise tax, and these are collected by IRS. One can visit the IRS website or local office for more information.
- State business taxes include sales and use tax, reemployment tax, corporate income tax, and other taxes that are collected by the department of revenue of Florida.
- Local businesses taxes are taxes that are required by each county to pay to operate within and are collected by local county tax collectors.
- City business taxes in some cities are required to operate within limits.
Starting a business in Florida-Pick a location
This is the first thing to be done if you are to run your business out of your home.
There’s a reason why starting a business in Florida is a good idea: it’s reasonably easy. The filing fees are reasonable, most of the registration procedures can be completed online, and there are numerous local resources to assist you in getting started.