How to Start a Business

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Step 1: Decide on a Business Structure

There are 3 basic options: a DBA, a Corporation, or an LLC.

A DBA or “Doing Business As” (also known as a “Fictitious Business Name” ) is not really a separate structure, but just a different name that an individual or partners use as their business name. i.e. “McDonalds” is the fictitious name and the entity is XYZ Corporation, LLC, Partnership, holdings etc...

A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors, and officers. More complex than a DBA but the entity of choice for large companies and startups. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, Accountants, Tax preparers etc.)

An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (does not require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.

NOTE: Some businesses require a specific type of business entity depending

on the industry you choose, or the license required by your profession (may

require a “Professional Corporation” or PC). In Florida, these professional

corporations must abide by the Florida Professional Service Corporations

and Limited Liability Companies Law (Title XXXVI, Chapter 621, Florida

Statutes) and Florida Business Corporation Act (Title XXXVI, Chapter

607,Florida Statutes).

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Step 2: Pick a Business Name

Picking a business name is easier said than done – (you can always change it later but that can take a while.)

A. Make sure you have covered the basics: unique, easy to understand/pronounce

(practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD

World” is not timely). Here are some of our tips on business identity including logo

and trademarks.

B. Search the web for your proposed name. Search Google as the “first sweep” for any

potential conflicts, especially in your state or local jurisdiction.

NOTE: If you intend to operate nationally or even internationally it will

be even more important that your name be unique to you. This should

cover many cases where a company name is being used but not

officially trademarked.

C. Do a trademark search with the US Patent and Trademark Office (USPTO). This will

be a very good indicator if your name will have any conflicts. There’s an art to

trademark searches (trademark specialists will charge you handsomely to do a

thorough search) but in our experience if you can use google at a fairly advanced level

you can reasonably clear a name yourself. Tip: search misspellings, plurals, variations

of spelling, sound-alikes, and other versions of your chosen name to be sure it is not

already registered.

Note: If we open your business, we will do this for you.

D. Make sure your company name choice is available by searching the Florida

Department of State Division of Corporations business name database. Note: Make

sure to search variations of spelling, plurals and misspellings as the state may reject a

name that is too similar

(then you must start all over again, wasting valuable time).

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Step 3: Register the Business

Each state has its own requirements for registering a business. Now that you have chosen a business structure and picked your business name, here are the requirements to register your business in Florida.

How to form an LLC in Florida

A. File the correct paperwork with the Florida Department of State Division of

Corporations

B. Hold an Organizational Meeting (yes, even for 1 person LLCs)

C. Optional: Elect S-Corporation status with the IRS by filing IRS Form 2553. Yes, even

an LLC can choose to be taxed as an S-Corporation (or even a C-Corporation).

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Step 4: Obtain your Federal Employer Identification Number (FEIN or “EIN”)

Your EIN is like your Social Security Number for your company. It is required for Corporations and LLC’s and optional for DBA’s (if you do not have any employees, then it is required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.

A. To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.

TIP: We will obtain your EIN for you if you we form your company.

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Step 5: Open Company Accounts: Bank and Credit Cards

you MUST open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit.

To open the account simply go to chosen bank and open a business bank account.

A. you’ll need your filed paperwork and your EIN (depending on your company structure a company resolution authorizing your company will be needed to open the account this will need to be signed by the owners, members, officers or directors, etc.).

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Step 6: Obtain Business Tax Receipts, Licenses and Permits

Now that you have registered your business and got your EIN you need to obtain a business Tax Receipt or license for your company – this authorizes your company to do business in your city or county. (the city may require them as part of the business licensing process). Note: Some counties do require you to have a business tax receipt or a special business license to work in their county.

Note: If we establish your business, we will obtain your Orange county, and

city if needed business tax receipt for you.

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Step 7: Annual and Ongoing Requirements

DBA: Your Fictitious Business Name should be valid for 5 years (unless you change company name or other information listed on the FBN) at which point you will need to renew it with the county.

LLC: Florida LLCs are required to file an annual report, due May 1 every year, which has a filing fee of $139.

Corporation: Every year you will need to file the “Statement of Information” or Annual report which updates the state on your business address and other things. Florida corporations can efile the filing fee is $125.00

Caution There is a $400 late fee for all for-profit corporations who do not make the May 1 deadline

Franchise Taxes: Florida requires a franchise tax due on the last day of the month in April, June, and September, as well as on the last day of the tax year. This is calculated as a percentage of the company’s net income for that year.