How to Form an Incorporation in Florida
The misconception associated with turning your business into a public entity is based on the task being a difficult one to go for. Most business owners think ten times over before doing so. But now, with the latest additions to Corporation Act, the law has made things easier for many business owners wanting to go over the stock market with their company.
In logistical terms, registering your company on stock exchange has become easier. Online filling has been introduced as part accomplishment of the law. All you have to do as an owner is to just be sure whether going public is suitable for you or no. Your legal advisor might be able to help you in this better than anyone else.
…but limited loans
Even though the company is actually growing, in terms of owners as well as employees, the finance available through bank loans will be limited. When a business jumps from sole ownership to an incorporation, the liability status turns from unlimited to limited. This means that the company will now only get a loan against the assets registered in the name of the company. While in a sole ownership or partnership, the bank could lend you a bigger amount than your registered company assets. This was because you had personal assets as well, which you could use to recover in case your business went bankrupt.
While choosing a name for your business entity, make sure it represents what your company does. For example, if your company makes t-shirts, its title should not suggest otherwise The consumer and all other stakeholders should be able to associate the name of the organization to the industry it is in. in addition, for a company that is public limited, the term “corporation”, “incorporate” or likewise should be added at the end.
For legal activation of the company, necessary documentation need to be processed through the legal office. The following information need to process (now through an online method):
- Title of the corporation
- Location of office
- Contact of board of directors
- Contact of incorporators
- Clarify whether it’s a non-stock corporation or stock corporation
Since incorporation is a business structure which enables everyone to buy some part of the ownership, the company, as a separate legal entity, becomes liable to be answerable to all the shareholders of the company. To avoid fraudulent activities within the company pertaining to the financials, an external auditor is hired on behalf of the state to cross check all the necessary financial data.
Slowly, all the disadvantages related to changing to a bigger business are being turned into advantages. This is being done by upgrading state laws to the needs and requirement of businesses and turning threats into opportunities. The Corporation Act has been upgraded at Florida to support business environment, primarily because the success of one company can lead to enhanced quality of the economy of the state.
If you need more information about our business development services, please contact us at 407-344-1228. FreedomSBS is a marketing, graphic & web design, accounting, internet marketing, business development, and corporate law resource firm all in one! FreedomSBS is your one stop shop to start, grow and mature your business. Our services include: incorporation services, graphic design, logo design, web design, web development, internet marketing, search engine optimization (SEO), marketing consultations and corporate law resources. Our services are provided nationwide, but since our main office is located in Kissimmee, FL, we mainly help businesses in the Central Florida market to areas like Orlando, South Orlando, East Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL.