Incorporating in Orlando Florida Sole Proprietorship
Most businesses in the United States operate as sole proprietorships. As a leader in incorporation services in Florida we know that it is a relatively easy and hassle free form which requires very little legal business requirements. But recently more and more businesses have started incorporating in Orlando, Florida because of the added advantages and security that a corporation offers.
However, before you decide to form LLC in Orlando, Florida or incorporate, it is best to see if you need to make the switch at all. Sole proprietors have been running successful businesses for quite some time, and at the same time they have incurred great loss too.
Incorporating in Florida – Advantages of Sole Proprietorship
When starting a business in Orlando, Florida, most people prefer to go sole proprietors because of the following advantages:
• You do not have to pay double taxation for your business and yourself. Sole proprietors only pay personal taxes which include the income generated from the business.
• It is relatively easier to start with very few legal obligations.
• The sole proprietor has the complete authority and the decision making power in the business.
• A sole proprietor can very conveniently sell or transfer the business.
• The legal costs for starting a sole proprietorship are minimal.
Incorporating in Florida – Disadvantages of Sole Proprietorship
Sole proprietor may be relatively convenient and easier to start, however there are a few disadvantages too which have led many business to incorporate in Orlando, Florida. So before you think of starting a business in Orlando, Florida as a sole proprietorship or if you are already in a business and thinking about other options, then following disadvantages will help you decide if sole proprietorship is the right choice for you:
• The biggest disadvantage of sole proprietorships and the primary factor why business owners prefer to form LLC in Orlando, Florida is the liability for all the losses and mishaps in the business. Many business owners have had to sell off their houses, cars or go bankrupt because their business incurred a major loss.
• All the decisions are made by the business owner.
• The business owner is also responsible for the liabilities incurred because of any of the business’s employees.
• Investors are not comfortable investing in sole proprietorships. Corporations and LLCs are considered relatively more reliable and trustworthy.
• A sole proprietor has to majorly depend on personal finances or loans from friends, family or the bank.
• You will need to pay the complete social security and Medicare taxes.
Incorporating in Florida – Should You Opt For A Sole Proprietorship?
There are plenty of advantages that a sole proprietorship has which is why it is considered as the ideal option for small businesses. But the added liability can greatly weigh down the advantages and lead an individual to consider other options.
There are many businesses that opt for sole proprietorship or partnership because of their misconceptions regarding other options. Gone are the days when incorporating was a long or tiring process, today you can conveniently form LLC in Orlando, Florida in only a few weeks or even days. LLC is one of the most viable options for small businesses today because it gives you the freedom to run your business independently and at the same time frees you from the liabilities of a sole proprietorship.
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.