Starting a Business in Orlando: Advantages and Disadvantages
Many entrepreneurs are starting a business in Orlando, FL. The state of Florida, popular for its tourism, has become a major business state in recent years. The state has implemented business friendly policies to encourage growth in the business sector. Its primary focus is creating jobs, economic developments and easier regulations. Whether you decide to form an LLC or incorporate in Florida, you will be available to enjoy the vast benefits the state has to offer. Consider both the benefits and the drawbacks of starting a business in Orlando, Florida to help you choose a business structure that works best for you.
Advantages of Starting a Business in Orlando
Capital and other costs
Starting a business in Orlando, Florida does not require your company to have a minimum startup capital. Land and labor are more economical in Florida than other states, and the government offers incentives to promote startups.
Personal asset protection
Forming an LLC or incorporation in Florida allows you to protect your personal assets if a lawsuit is filed against your business. Owner and members of a business are not personally liable for business debts and obligations. In sole trading companies and partnerships, the state does offer personal asset protection, but only to a certain degree.
Florida implements a pro-business tax structure with minimum taxes and no personal income tax, due to its high financial reserves. Double taxation can also be avoided and the saved tax money can be spent elsewhere on the business.
LLCs and corporations in Florida seek to exist regardless of the changes in owners. Partnerships and sole trading businesses end if the owner dies or leaves the business. Corporations, however, seek to exist and continue to provide employment and services.
One of the main advantages of incorporating in Florida is that the government is business friendly. Florida employs a right-to-work policy and has expedited regulations and easy permits to facilitate startups and relocations.
Disadvantages of Starting a Business in Orlando
When considering incorporating in Florida, it is important to know the disadvantages as well. Though not many, these factors can affect your decision on choosing a business structure.
Starting and ongoing fees
LLCs and corporations are more expensive to form than sole trading and partnerships. Though the state requires no minimum capital, the low cost startup policies do not imply to LLCs and corporations.
LLCs and corporations are new business structures to Florida. Therefore, there are not many laws and regulations, which can pose your business to lawsuits and other legal obligations which do not occur usually in other states.
Sole trading companies and partnerships are required to keep records for tax purposes and evaluating their profitability. This makes it easier to transfer ownership. However, in corporations and LLCs, the owners cannot transfer ownership unless it is mentioned in the operating agreement.
Starting a business in Orlando, Florida can be rewarding if you choose the right business structure. With the government gearing towards a more business friendly environment, now is not a bad time to settle in the sun and sea state and be the boss.
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.