How to Create a for Profit Corporation In Florida
A for-profit corporation is a special type of legal financial and legal structure that offers a business some distinct advantages. The most important is “limited liability.” Investors in the business are liable only for the money they have actually invested. If the business runs into trouble, its creditors can only seek to recover their money from the corporation’s assets. Other money and property owned by the investors cannot be touched. Thus, if you follow these steps to create a for-profit corporation in Florida, your risk is limited to the money you invest.
Other People Are Reading
Instructions
-
-
1
Decide If a for-profit corporation is the right business form for your needs. In addition to limited liability, a corporation can sell stock or issue bonds to raise capital and in some situations offers tax advantages. The potential downside is that you may be subject to double taxation (both corporate and personal) on profits you take out of the company over and above your salary. You should consult your accountant and attorney before deciding to create a for-profit corporation in Florida.
-
2
Pick a name for your corporation. When you incorporate you are creating a distinct legal entity and it must have a unique identity. Go to the Florida Department of State's “Sunbiz.org” website (see Resources at the end of this article) and choose "Document Searches." Enter your proposed corporation name under the appropriate category and click on "Inquire by name." The search engine will display the closest matches and list them as either active or inactive. An active name is in use. Any inactive names are available and you can use one of them for your corporation.
-
-
3
Download the forms you need from the Sunbiz website. The main form you need is the “Articles of Incorporation.” Fill this out, including the name you have chosen and the names of the officers of the corporation. You can do all this yourself if you wish to save attorney’s fees. However, unless you are familiar with Florida business law, it’s probably worth your while to get legal advice to ensure you have everything in order.
-
4
Submit your Articles of Incorporation to the Florida Department of State along with the required fee(s). A fee schedule is available on the Sunbiz website. Expect about 4 to 8 weeks processing time.
-
5
Research the regulations governing corporations in Florida engaged in your line of business. Rules for individual proprietorships or partnerships may be different. Plan ahead for specific things you will need to do, such as preparing an annual report.
-
1
Tips & Warnings
Although all profits your corporation makes are subject to corporate taxes, only the money you take out of the company as profit in the form of dividends or selling some of your shares in the company are subject to personal income taxes. To avoid double taxation you will want to set up tax shelters where possible such as an IRA.
