Incorporating in Florida is Business Friendly
Incorporating in Florida has become popular for its growth and development, because the state of Florida is an over friendly state for entrepreneurial activity. The state laws support expansion to the optimal level. Opening up a business in Florida is easy but once you expand your business, incorporating in Florida is recommended to avoid problems.
Before you make the decision of expanding your business into an incorporation lets’ first have a bird’s eye view on Florida’s policies regarding incorporations and discuss the pros and cons of going ahead with a limited company. Before looking into deeper matters, as the owner of your company, you must decide which type of corporation is suitable for the growth of the business. Corporation types in Florida include C Corporation, S corporation and Limited Liability Company (or LLC).
Incorporating in Florida as a Corporation C is a conventional corporation we study about in accounting text books. Double taxation is the associated disadvantage attached to the conventional incorporated business. A 5.5% corporate tax is first placed by the Florida government on the profit that the company is able to generate. Other than that, another tax is placed on the shareholders of the company, when a dividend pay-out is released.
On the contrary, if you incorporate in Florida as an S corporation does not have to host double taxation. Legally, the S type incorporated companies are not eligible to pay corporate taxes on profit even if they make a handsome amount of excess revenues over costs. However, there is a limitation on the number of shareholders that can hold ownership of the company via shares of an S corporation. Only 75 shareholders can be part of such a corporation at a particular point in time.
An additional alternative to incorporating In Florida is available for the to-be incorporations is a hybrid between corporations and partnerships. The added advantage here would be the choice available for either being taxed as a partnership or being taxed as a corporation.
Incorporated firms exist as an officially permitted body which is segregated from the owners and exercises the concept of unlimited liability and goodwill. A fake corporation can never exist, primarily because the government or the state initiations allow the company to go public. Therefore, the chances of the company having a strong goodwill are high. With accumulation, if the company goes bankrupt and is unable to pay off its debts in due time, the assets of the company are sold out to pay off all the liabilities. The owners, directors or the employees of the company are not liable to pay anything out of their own pockets. Instead, a limited liability corporation can raise capital, fix their cash flow shortage and pay off its liabilities through selling stocks.
As experts in incorporating in Florida we know that running a corporation is more difficult and multifaceted and requires a lot of time, effort, and manpower. As compared to sole proprietorship and partnerships, corporations are required by the law to get their accounts audited via a third party and display their transparency to the government, shareholders and the general public. It is advisable for other forms of business to turn into a corporation if the company has grown too big for the management to handle.
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, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL.