Incorporating your business in Florida is now easier than ever. In recent years Florida has become very popular for business incorporation. If you have ever had your own business you well know the risks of being a business owner. It's necessary to invest a lot of time and effort in order to make a business successful. Hard work pays off in the end, but you will only be successful if you can put forward an attitude of perseverance.
Incorporating your business limits your liabilities. In the event that something should go wrong either in the business or in the target market in which it operates, having limited liability means that you as an owner are protected from total financial ruin. Limited liability can help in the legal arena as well if your business gets sued
Incorporating your business will allow you to be protected under what is called the corporate veil. The corporate veil is what legally separates entrepreneurs who own and operate businesses from the businesses themselves. In order to have the protection of the corporate veil, you as a business owner must follow certain guidelines once your business has been incorporated. You must keep your company finances separate from your personal finances in addition to avoid criminal activities. If you follow these guidelines, then it's unlikely for you to be ruined if the business goes under.
Some basics information for Incorporating a business in Florida include, naming your business. Your name must reflect the business but must also contain the word “Corporation.” The name may not contain language stating or implying that the corporation is organized for purposes other than that permitted by Florida law or the articles of incorporation. The name must be such as will distinguish it from another corporations formed in the state.
For Florida Incorporation you must have a director who is at least 18 years of age. There are no resident requirements. Florid does not require Corporate Directors to be listed in the articles of incorporation. The Corporate Officers are also not required to be listed in the articles of incorporation.
The rules about stocks include that an increase in shares or par value does not affect initial filing fees. Corporate records must be kept; however, they are not required to be stored at a specific location. All businesses in Florida are required to file a Uniform Business Report. The annual filing fee is $150. Reports are due January 1st and become delinquent if not filed by May 1st.
Florida imposes a franchise tax on foreign and domestic corporations for the privilege of doing business in Florida. The tax rate is 5.5% of net income. The first $5,000 of net income for the year is exempt. S Corporation status is recognized by the State of Florida. Further, Florida does not have a personal income tax; thus shareholders would not be taxed on corporate earnings. A separate state election from the federal election is not required.
For the first year in which an entity qualifies as an S Corporation, the company must file the informational portion of Form F-1120 the Florida Corporate Income/Franchise tax return. In subsequent years, S corporations are only required to file Florida Form F-1120 if the S Corporation has federal taxable income. Businesses in Florida are required to obtain a license for a fee.