Monroe County, Florida: Business Entity Creation & Structure

You might think that with all of the forms and tutorials on the internet, creating a business would be simple. Yet this picture does not take into account the multiple pitfalls that can be encountered when trying to create a corporation or other business entity. It only makes sense to minimize the likelihood of mistakes by hiring a business entity creation and structure professional. The Silver Law Group is among the leaders in the field of helping create businesses in Monroe County, Florida.

Types of Business Entities

If you’re considering forming a business, the first question you’ll ask yourself is about the type of business entity you wish to create. There are four different types viable under Florida law. These include:

Sole Proprietorship

A sole proprietorship is a business owned (and often operated) by one person. This is a very easy business entity to create, but it comes with one significant disadvantage: unlimited personal liability. In sole proprietorships, the business interests and the personal interests are so intertwined that to divorce them is all but impossible. Therefore, if the business incurs liability, the owner’s personal finances are involved. There are, however, no taxes assessed by the state of Florida for the creation of a sole proprietorship.

General Partnership

A general partnership is usually a written agreement between two or more people. Liability in a general partnership is borne by the business, though the partners may be liable if the business runs out of money.

Limited Liability Company (LLC)

An LLC is the middle step between a corporation and a partnership, created by a written operating agreement. This is accomplished by having each partner own what is referred to as a membership interest in the company, instead of directly owning the company and all its assets. This means that each partner has limited personal liability – unless they are bound to an agreement through someone acting as the LLC’s agent. There are fees associated with the creation of an LLC, but they are generally offset by money saved by the limitations on liability.

Corporations (C and S)

Corporations are perhaps the best known form of business entity, created via articles of incorporation filed with the state. There are two different types:

  • C corporations have shareholders and lack personal liability for partners, but have to contend with what tax professionals call double taxation – profits are taxed as dividends, and then taxed again on the shareholders’ income
  • S corporations are taxed more in the manner of LLCs, meaning that dividend income is only taxed once, but the rules about what constitutes income are somewhat more complex.

All of these businesses may have employees without penalty, though they will be subject to employment taxes if so.

Once you have made your decision as to the format of your business, having a Monroe County business entity creation and structure attorney on your side can also help to smooth the process of registering your business with the appropriate authority. Regardless of which business entity model you choose, the appropriate notices must be filed with the county and with the Internal Revenue Service.

If you are in need of assistance in getting your fledgling business get off the ground, the Silver Law Group is happy to assist. We have years of experience and are well versed in the process of business entity creation. Contact our Islamorada office today to discuss your options.