A business entity refers to a legally recognized organization or structure formed for the purpose of conducting business activities. It is a distinct and separate legal entity from its owners or members.

Choosing a Business Structure

There are several types of business entities, including:

Getting pre-approval is one of the best things you can do to simplify the process and give yourself more confidence in your buying power. A pre-approval lets you know how much you are able to borrow with minimal risk. However, as with anything to do with mortgages, you'll want to understand the pre-approval process before you get started.

We have an excellent relationship and can referred you to several brokers and lenders

  • Sole Proprietorship: A business owned and operated by a single individual. The owner has unlimited personal liability for the business's debts and obligations.
  • Partnership: A business owned by two or more individuals who share the profits, losses, and management responsibilities. There are different types of partnerships, such as general partnerships and limited partnerships, each with varying degrees of liability for the partners.
  • Corporation: A legal entity that is separate and distinct from its shareholders. It provides limited liability protection to its owners (shareholders) and has a more complex structure with shareholders, directors, and officers. Corporations can be either C corporations or S corporations, differing in terms of taxation and ownership restrictions.
  • Limited Liability Company (LLC):A hybrid entity that combines elements of a corporation and a partnership. LLC owners, known as members, enjoy limited liability protection, similar to shareholders in a corporation. LLCs offer flexibility in management and taxation options.
  • Cooperative: A business owned and operated by a group of individuals or businesses for their mutual benefit. Cooperatives are typically formed to provide goods, services, or support to their members.

Each type of business entity has distinct characteristics, legal requirements, tax implications, and levels of liability protection. The choice of business entity depends on factors such as the nature of the business, number of owners, liability concerns, tax considerations, and management structure. It is advisable to consult with legal and financial professionals to determine the most suitable business entity for your specific needs.

Registering a Business Name

Select a unique and distinguishable name for your business that complies with Florida's naming requirements. Ensure the name is not already in use by another entity.

Filing the Necessary Documents

Prepare and file the required documents to register your business with the Florida Division of Corporations. The documents vary based on the business structure you have chosen. For example:

  • For a sole proprietorship: You may need to file a "Fictitious Name Registration" if you are operating under a name other than your own.
  • For a partnership: You may need to file a "Partnership Registration" and draft a partnership agreement.
  • For a corporation or LLC: You will need to file Articles of Incorporation or Articles of Organization, respectively.

Obtaining an Employer Identification Number (EIN)

Apply for an EIN from the Internal Revenue Service (IRS). An EIN is required for tax purposes and is used to identify your business entity.

Registering for State and Local Taxes

Determine if your business needs to register for state-level taxes, such as sales tax, unemployment tax, or reemployment tax. Additionally, check if there are any local tax requirements specific to your county or municipality.

Obtaining Necessary Permits and Licenses

Depending on the nature of your business activities, you may need to obtain specific permits or licenses. Visit the Florida Department of Business and Professional Regulation website or consult with local authorities to identify any applicable licenses or permits required for your business.

Consider Insurance

Assess your business's insurance needs, such as general liability insurance, professional liability insurance, or workers' compensation insurance. Insurance requirements can vary based on your industry and the nature of your business operations.