Sarasota Business Formation Attorneys
Helping Startups Select and Form the Right Business Entity
When you start a company, you should consider which business entity is the right decision for you. Some people start operating as a sole proprietorship or general partnership, which require no formal steps or filings with the state. However, there might come a time when you want to better protect yourself as an owner and reap the benefits that formal entities have to offer.
Whether you have a startup idea or want to convert your business from a sole proprietorship or general partnership, you should discuss all of your options with an experienced Sarasota business formation lawyer. Contact Inverso Law Group to schedule your appointment today.
Business Entities in Florida
Sole proprietorships and general partnerships might seem attractive because they require no additional paperwork to be filed with the State of Florida. However, these entities also provide zero protection from personal liability. These entities are not distinct from their owners, so owners will be personally liable for all debts and obligations of the business. To protect yourself and prevent risking your life savings or property, you should consider an entity with liability protections.
Limited liability company (LLC) - An LLC creates a distinct legal entity apart from the owners, so it provides liability protection. It also has flexible options for taxes, and owners can choose pass-through taxation or to be taxed like a corporation. It does not require much paperwork to form an LLC, though you do have to register with the state and file initial documents. You will need to ensure you keep business assets separate from your own - otherwise, you might negate liability protections down the line.
Corporation - Forming and maintaining a corporation can be complicated, though it has many benefits. The following are some of the requirements when incorporating your business in Florida:
- Selecting a corporate name
- Preparing and filing your Certificate of Incorporation
- Appointing someone to serve as your registered agent
- Drafting corporate bylaws
- Appointing a board of directors
- Holding your first board meeting
- Issuing shares of stock
Once your corporation is formed, maintaining the business requires filing annual reports, complying with all regulations and tax laws, and more. You will also need to deal with shareholders and act in their best interests as you manage the business. While corporations require more work, they allow for successful funding of the business through stock, liability protections, and much more.
No matter what type of entity you choose, you also want to have an operating agreement in place - whether or not the state requires you to do so. This can help prevent and resolve conflicts between owners in the future.
Speak with an Experienced Sarasota Business Formation Lawyer
The Inverso Law Group assists owners of all types of companies in all aspects of business. We can help you get off the ground or work with well-established companies. We assist clients in every stage of business, so please contact a business formation attorney by calling 941-926-6039 or contacting us online.