Sole Proprietorship Business in Florida
A sole proprietorship business in Florida is the simplest type of business to form and is also the least expensive.3 min read
2. Establishing the Sole Proprietorship in Florida
A sole proprietorship business in Florida is the simplest type of business to form and is also the least expensive. As sole owner, you will have complete control over it. This type of business allows you to be taxed jointly, so tax preparation isn't as complicated as it is with other types of businesses, and an added benefit is that tax rates are lower than the taxes of other business types.
Because you are the owner of a sole proprietorship and you aren't taxed separately from it, you are personally responsible and obligated to pay all debts of the business, which includes obligations to any lawsuits filed by employees of your company.
A sole proprietorship has no stocks to sell, so it is difficult to raise capital for your business. Banks aren't eager to lend the sole proprietorship money because they are afraid that the owner will be unable to pay back the loan if the business should fail. As an owner of a sole proprietorship there is a lot of stress on you because you are responsible for the success or failure of your business.
Starting the Sole Proprietorship Business in Florida
The business plan for your sole proprietorship in Florida is a projection that shows the products or services that your company will provide, it defines the plan to increase income for your business, and it also is an outline for your business' goals and the values of your business.
Your business plan could look like this:
- An overview of your business and the goals you want to accomplish.
- A description of your company which explains what your business will do and how it is innovative and unique from other businesses in the same chosen field as your business and in the area of Florida where your business will be based. You will distinguish your business from competitor businesses.
- There is a separate part projecting the market that your business will be apart of, showing the activity of the market and your competitors.
- There is an outline that breaks down your business' structure, organization, and management where you show how the business' daily operations will function.
- In a separate section, there is a description of the products or services your business will provide which will also tell what the purpose of the product or service is and how it will benefit your customers.
- There is a marketing strategy section on how you will advertise your product or service to increase sales.
- There will be a section added if you are planning on asking for funding for your business that should include financial projections, how much capital you will require, and how that capital will be spent.
Establishing the Sole Proprietorship in Florida
The sole proprietorship is the simplest type of business to establish compared to other business types. A sole proprietorship is the most uncomplicated way to organize a new Florida business, and since it is an unincorporated business with one owner, they are considered the same for tax purposes. The sole proprietorship has minimal state and federal start-up costs, but being a sole proprietor they have to be responsible for all expenses, debts, and profits that are incurred by the business.
If you want to be a sole proprietor in Florida, the kind of paperwork you will need to complete depends on what type of business it is, if you will employ people, and the business name you choose. The single owner of the sole proprietorship business takes responsibility for the liability of the business' debts and obligations. Other things that entail starting a sole proprietorship is deciding on the business location, registering the business name, applying for permits and licenses, and registering to pay business and personal taxes.
If you have any further questions about establishing or having a sole proprietorship business in Florida and you want to get a better idea if this kind of business is right for you, the lawyers at UpCounsel.com are there to assist you to help you understand. Post your legal need on UpCounsel's marketplace to ask any legal questions concerning this issue and how it can impact you.
UpCounsel has the most knowledgeable and experienced lawyers on their staff that are ready to assist you with your legal needs. UpCounsel accepts only the top 5 percent of lawyers, coming from law schools such as Harvard Law and Yale Law, having an average of 14 years of legal experience which includes working with or on behalf of companies like Menlo Ventures, Airbnb, and Google.