Sarasota Business Lawyers
Starting A Business? We Can Help
Starting a business involves more than opening up shop and serving clients and customers. From a legal standpoint, there is much that needs to be done and having an experienced team of attorneys will help get you on the path to success.
As a business owner in Florida, you’re likely to enjoy the state’s pro-business tax policies, favorable regulatory environment and competitive cost of doing business. But there are complicated procedures to get a business up and running. Any corporation that wants to do business in Florida must be registered with the state. Companies from other states or countries must be registered if they rent an office or employ Florida workers. The attorneys at Buckman and Buckman, P.A., know can help your business get up and running quickly.
Incorporating A Business
The first step in starting your new business is deciding what type of business entity works best to protect you from liability. Buckman and Buckman, P.A., can give you advice and help you set up one of these types of businesses:
- Sole Proprietorship
One person owns the business and is responsible for all debts. There is no legal distinction between the owner and the business.
- General Partnership
An association of two or more people to form an unincorporated company with the goal of earning a profit.
- Limited Partnership
In addition to one or more general partners, there are one or more limited partners. In most cases, one partner runs the business while others contribute capital. They have limited liability.
- Limited Liability Partnership (LLP)
In this arrangement, individual partners are exempt from liabilities in the event another partner is negligent. In addition to one or more general partners, there are one or more limited partners. In most cases, one partner runs the business while others contribute capital. They have limited liability. This structure combines the limited liability of a corporation and the tax structure of a partnership. A partner’s liability is tied to his or her level of investment. Partners file profits and losses on their own tax returns, not the business entity’s.
- “C” Corporation
This business is taxed separately from its owners. The corporation, not the shareholders that own it, is legally responsible for losses and debts.
- “S” Corporation
Income or losses are divided among shareholders. Like an LLC, the business is not taxed itself; shareholders file on their personal tax returns.
LLC Or “S” Corporation?
Our legal team can help advise you on which is the best option for your company, as there are pros and cons to both.
There are fewer forms and start up costs for an LLC and fewer restrictions on profit sharing. LLCs are not required to hold formal meetings. However, the LLC dissolves if a member dies or goes into bankruptcy, and its members are required to pay self-employment tax contributions toward Medicare and Social Security. The LLC’s entire net income is subject to those taxes.
The major advantage of a corporation is the reduced tax burden on the owners. Shareholders of an S Corporation are not responsible for its debts. However, there are more formal requirements – director and shareholder meetings, bylaws and multiple tax forms that must be filed with the IRS throughout the year.
There is also an option to apply to have your LLC receive S-Corp status, which is something best discussed with your attorney.
Contact Buckman and Buckman, P.A., now. We will help you navigate Florida’s complex business laws to get you up and running as soon as possible.