Starting a business in Florida involves navigating several key legal and regulatory steps. To successfully launch your enterprise, you must first (i) choose a legal structure to establish your entity type, tax framework, and liability protections. Next, you must (ii) register with the Division of Corporations via Sunbiz by filing the appropriate organizational documents and appointing a local registered agent. Once you registered, you need to (iii) obtain an Employer Identification Number (EIN) from the IRS, which is required for business banking and federal tax purposes. You must also (iv) register with the Florida Department of Revenue to establish your state tax status if you intend to sell goods, hire staff, or rent commercial property.
Additionally, it is critical to (v) secure valid licensure and comply with zoning ordinances to ensure your business meets all local land-use laws and industry-specific regulations. Finally, if you intend to scale your team, you must (vi) obtain employee insurance and report new hires to remain complaint with state workers’ compensation guidelines and federal employment reporting mandates.
Choose a Legal Structure
When registering a business, a business owner must classify their entity type either an LLC or a corporation. Both structures carry distinct taxing implications and liability protections; therefore, business owners must thoroughly understand these differences before making a final classification.
• Register with the Division of Corporations
Unless a sole proprietorship is being operated under the owner’s legal birth name, a business owner must register their company directly through Sunbiz, which serves as the Florida Department of State’s official Division of Corporations portal.
If the business is classified as a corporation, the business owner must file Articles of Incorporation to legally establish the entity. If the business is classified as an LLC, the business owner must file Articles of Organization. Regardless of the chosen structure, a business owner must also appoint and register a designated registered agent who maintains a physical business office address within the state of Florida. To satisfy requirements, a business owner may appoint an individual Florida resident, an authorized domestic entity, or an authorized foreign entity authorized to transact business in this state, provided they are capable of maintaining regular business hours to receive official legal documentation and service of process on the company’s behalf.
• Obtain an Employer Identification Number
A business owner must obtain an employer identification number (EIN) to open a business bank account and manage federal taxes. However, if the business is structured as a sole proprietorship with no employees, a business owner is exempt from this requirement.
• Register with the Florida Department of Revenue
A business owner must register with the Florida Department of Revenue to establish a company’s tax status. A business owner must complete this registration if the business will engage in certain activities, such as selling taxable goods or services, or hiring employees.
• Valid Licensure and Zoning Ordinance
A business owner operating in a regulated industry – such as construction, healthcare, real estate, or specialized professional services – must secure the proper state credentials and professional licenses before opening their doors. Additionally, a business owner must ensure their commercial location complies with local city or county zoning ordinances.
• Obtain Insurance for Employees and Report Employees to the New Hire Reporting Center in Florida
A business owner employing staff in Florida must secure workers’ compensation insurance according to state guidelines. Furthermore, pursuant to Florida Statute § 409.2576, a business owner must report all newly hired or re-hired employees to the Florida New Hire Reporting Center within 20 days of their official start date. However, in the case of a business owner that reports this new hire information electronically or by magnetic tape, the business owner must instead submit by two monthly transmissions that are not less than 12 days nor more than 16 days apart.
Additionally, a business owner must also report any independent contractors within 20 days after the earlier of the date the contract is entered into or the date of the first payment that requires an information return in accordance with s. 6041A(a) of the Internal Revenue Code of 1986. Business owners can register and file directly online through the Florida Department of Revenue’s Services for Employers portal.
It is also important for a business owner to inquire into specific coverage to protect the workforce and cover state taxes. These requirements are entirely dependent on the type of workforce a business owner employs and the nature of the business.
