Florida’s Small Business Development Center (SBDC) recently reported that it expects to become the top state in the nation for business starts and sustainability. The state has made it clear that it welcomes entrepreneurs, and so far it is faring well. The group reports that when looking at 5-year business start-up success rate, Florida ranks in the high-mid range at 50.2%. This may not seem like much, but it is not far behind the top state, Montana, which boasts a 56% success rate.
Entrepreneurs that are poised to take advantage of Florida’s offerings are likely wondering which business entity will best suit their needs. Those that have chosen to go with a limited liability company (LLC) for its combination of liability protection and pass-through tax benefits know that they need to abide by state rules. Some of the rules that have nuances specific to Florida include the choice of the business name and the filing of the required forms.
#1: Choice of name.
State law requires the business name to be distinguishable from other businesses. Prospective business owners can check the business entity search engine at the Florida Department of Commerce to make sure their choice is available.
#2: Form submission.
Send LLC Forms to the Department of State’s Division of Corporations. The Department will reply with a confirmation if approved. If not, the Department will send a rejection letter outlining the reason for the rejection and you can try to resubmit after making necessary changes.
This is just one of the first steps to take when starting a business in Florida. It is important to also plan for additional legal considerations that can arise including getting the right licenses and drafting enforceable employment contracts.