Start a Business in Orlando Florida – Business Partnership
There are several ways to start a business in Orlando Florida. A partnership is a formal agreement between two or more people to formally conduct business together. A partnership is a formalized relationship, the terms of which are drafted and agreed upon in a partnership agreement.
To run a successful company, partners in business must initially come into agreement regarding the terms and conditions that are usually associated with running the business. To decide whether you need to enter into a partnership or not, you will have to consider the skills and the contribution that a prospective partner is likely to make. For example, if you are financially constrained or lacking in certain areas of expertise, choosing someone who is proficient in those areas can play to your advantage.
When starting a business in Orlando Florida you have to be effective in running the business, your skills and abilities should complement your partner’s. For example, if you are an expert in marketing and sales, choosing someone who has a background in finance can bolster your business. Also, you should be able to communicate with your partner in a frank and candid manner.
Once you have decided to start a business in Orlando Florida as a partnership, you should then formalize the agreement by drafting and agreeing upon a partnership agreement. Some of the crucial points that are covered in a partnership agreement include ownership in the business, compensation plan, roles and responsibilities of each partner, remuneration and investment procedures. A partnership is the relationship existing between two or more people who join to carry on a trade or business. Each person usually contributes in terms of capital, assets and expects a share in the profits and losses of the business.
While entering into a partnership agreement can have many advantages, there are many drawbacks to it too. One of the cons of a partnership corporation is the general liability. By general liability, all partners are liable for the actions of other partners. Also, a partnership is considered as a risky form of business as a partnership can be disrupted upon death of a partner. Issues such as succession of next of kin can also threaten the stability of a growing business.
How to Set Up a Partnership in Florida?
Once you have decided upon entering into a partnership agreement and doing business with your partners, you will have to select a name for your partnership corporation. The name of your partnership corporation shall be subject to availability and you will have to register with Orlando state authority.
Once your name has been agreed upon, you will be required to draft a partnership agreement which usually involves terms and condition of the partnership. Along with the partnership agreement, you will be required to obtain a license from Orlando State Authority. Once you have attained a license, you will need to obtain an Employee Identification Number (EIN) which shall permit you to hire employees.
Once you have attained an EIN, you will be required to file Form 1065, with the IRS detailing the returns you have gained from the partnership, number of partners and the taxable share of income of each partner.
Once you have completed the legal requirements, you will be able to open a bank account and run your business as a partnership corporation.
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.