Business partnerships are like marriages. They are made up of people: people who are different; people who have different needs; people who have different working styles; people who have different life goals. If you are a partner in a Florida business, you may have the uneasy feeling that all is not “right” in your business. Maybe you cannot put your finger on exactly what is wrong, but the excitement, enthusiasm and thrill that you and your partner(s) had when you first started your business seem to have dissipated over time. You no longer greet each business day as a marvelous opportunity to gain new customers, produce more product, and earn more revenue. Now there are days when you would just as soon stay home, and you fear that your partner(s) may feel exactly the same way.
If you are a Florida resident who enjoys remodeling and renovating homes, perhaps even building from scratch, you may be considering becoming a contractor and going into business for yourself. While this is an exciting prospect, getting your new business up and running can be daunting.
If you have plans to open your own small business in Florida, one of the most important steps in doing so involves establishing a particular type of business structure. Even if you do not plan to open a business in an industry where risks are clear and apparent, such as, say, food service or transportation, virtually every business exposes itself to at least some degree of risk. However, there are certain types of business structures that can limit your personal liability and enhance your peace of mind. At the Law Offices of Levi Williams, P.A., we understand the methods you can use to reduce personal liability with regard to your business, and we have helped many clients navigate the complexities involved in doing so.
For any business owner in Florida, the subject of taxes can be a sensitive one. Regardless of business size, the question of how to structure a business to meet operational needs as well as how to balance tax liability can be a major hurdle when setting up a new venture. Taxes are one of the many reasons that S corporations have grown in popularity compared to the traditional C corporation, for example, because the S corporation avoids the double taxation associated with C corporations.
Florida state tax rules and federal regulations are equally important during any corporate structuring process, whether you are setting up a tax plan for a new company in the state, or modifying the structure of your existing business to prepare for a transitional phase. The process might seem complicated, but it often becomes easier when you make general choices first before focusing on the details. The choice between creating an S or C corporation is likely to be one of your fundamental decision points.
If you are a Florida entrepreneur, you probably are thinking of starting a new business. Your choice of business entity will have lasting consequences with regard to who owns it, how it will be managed and how it will pay taxes.
Florida entrepreneurs who have successfully built up new ventures may at some point consider turning their privately held companies into publicly traded companies. There is no rule as to when or why this may be done and it is certainly not the route for every business but it can have some advantages.
Florida entrepreneurs looking to start a new venture may not always want to go it alone. A business partner can bring a lot to the table but it does not always require that a business to be structured as an official partnership. Even if a new company is ultimately created as a limited liability company or a corporation, there may be an interest in having a partner to get things off the ground.
When looking to start a new business venture in Florida, the issues surrounding taxation can direct many of the decisions that an entrepreneur may end up making. For example, the traditional corporate structure is referred to as a C corporation. From a tax perspective, this type of business has historically paid relatively high taxes compared to some other models. This is because the corporation itself pays taxes and then the individual shareholders also must pay personal income taxes on their earnings from the corporation. That results in some monies essentially being taxed twice.
If you are the owner of a business in Florida, you know that there is no shortage to the number of decisions you must make to keep your company running. But, how much time and energy have you devoted to making decisions about how to leave your company? Business succession planning is an important thing that is all too easy to put off but that shouldn't be.