The Sunshine State of Florida, is a great place to live and start a business for many reasons. Firstly, the state government keeps business taxes and regulatory requirements low. Secondly, there are no capital gains, personal income, or death taxes, and thirdly, universities, colleges, and other higher education institutions work closely with the business community to build programs that can assist Florida industries.
Most thriving companies have a significant effect on the communities around them. According to a study by Better Accounting, for every dollar spent in a small business, 68% of it funnels back into the community. If you’re looking to start a business in the third most populated state, there are a few things we think you should know.
Start By Doing Enough Research
It’s crucial to know that starting a business is a big risk. If you’re new to Florida, you will have more work than a Floridian. That means you must research every aspect of your business, from the regulations to the supply and demand in your area. Starting a business means creating a plan for how you want to run it. For instance, you need to determine whether you need to work with a partner. Your research will let you know if it’s a good idea to involve another party or not.
According to Balance Money, up to 70% of all business partnerships fail. You want to avoid such pitfalls and focus on building a lasting business. Your plan should include your business structure depending on the business type and industry. Different businesses have different requirements, including tax implications. Check the cost of operating a business like the one you intend to start and set a realistic budget.
You Need a Fictitious Name and EIN
The Fictitious Name Act requires business owners to register a fictitious name or a ‘doing business as’ (dba) name with the state before conducting business in the state. If you’ve already filed as a sole proprietorship and your company has a name other than yours, you must register this as a fictitious name. You also need to get the Employer Identification Number or EIN, which serves the same purpose as your social security number.
With your EIN, you can establish business credit, open a business bank account, hire employees, and apply for business licenses. You can obtain your EIN by filing a Form SS4 with the IRS. If you’re establishing an LLC in Florida, you’re not required to register for an EIN, but some banks may require you to have one if you need loans, a savings account, or any other business account.
Take Advantage of Business Funding
You can fund a new business in Florida in numerous ways, including short-term loans, Small Business Administration (SBA) loans, crowdfunding, angel investors, and many others. Do your research and find out what works for you.
Florida’s Small Business Development Center Provides helpful resources and free financial advice for new business owners concerning funding options. Remember, your funding needs may not be the same as another entrepreneur’s. Your friends and family are a great funding option. They can give you the amount you want without interest. Some may also not give a tight repayment period. Banks offer various options pending on the business and the amount you need.
Check for Extra Regulations and Requirements
Apart from the federal and state business requirements, the local county and municipal governments in Florida may have their own requirements. They may also require additional licenses and permits. If you’re establishing a business that doesn’t require a physical location like most people are doing today, you may skip some regulations. For instance, according to Move Buddha, there are about 7,000 moving companies in the United States. Be sure to check and enquire about these before you start your business. You can check this information on the city’s or county’s website to ensure you’re familiar with local ordinances as well as additional requirements.
Starting a business in Florida doesn’t need to be complex. With a good plan and a little research, you can get your business up and running in no time. If you’re not sure how to get started, be sure to speak to a business advisor.