Florida Incorporation

Florida Incorporation

Incorporation for your Florida business has become simple and rather stress-free with the advent of a new process that allows business owners to incorporate online by filling out and submitting an online form.

If you ever dreamed of having your own business you've probably taken the time to research the intricacies involved in being the proprietor of a new business. Some people like the idea that you can appoint yourself President or Vice-President of your own corporation! Time and effort spent toward creating the ultimate Florida business can pay-off in spades, but persistent, continual effort will pay off more than anything.

Incorporation in Florida limits your business legal and financial liabilities. When you incorporate you are in effect creating a separate legal entity outside of yourself that can take the place of your personal liability to some degree. Sometimes to a large degree. Should some unforeseen event go wrong within the business itself or in the business area in which one is located, the Florida business owner can enjoy protection from personal lawsuits and judgments in a court of law. The corporation as a legal entity can be your best friend. This state of limited liabilities as a business owner keeps you from judgments that can wipe out your entire dream. If you were to face litigation as an individual everything you own, your hard earned savings and your personal assets could well be at risk if you're the target of someone suing you.

By incorporating your Florida business you initialize what is known as the "corporate veil". A veil shields your eyes from the sun. A corporate veil shields the business owner from some legal threats. A company's corp. veil puts distance between Florida entrepreneurs who own and manage the business on a day to day level, and the corporate identity of the company itself.

To enjoy full protection of the corporate veil, there are a host of guidelines to follow subsequent to your Florida business incorporation. Personal income (any and all) needs kept separate from corporate financial matters. One shouldn't blend monies from the corporation with personal monies, and vice-versa. One must steer clear of all criminal (illegal) activities. Familiarizing yourself with the Florida legal statutes is highly recommended. By following these few suggestions you can avoid lawsuits, and action brought on by the state or other authorities.

Some general information about Florida business incorporation...

Naming your Florida business:

•    The name you choose can be of your own design but must include the word, "Corporation."
•    The corporate name shall not use language implying or stating that the corp. is organized for any purpose other than that permitted by Florida law or the "Articles of Incorporation", which state the corporations business focus and purpose.
•    The corporate name chosen by the incorporator shall be unique and not easily confused with other established corporations at the time of incorporation.

Other Florida Incorporation requirements:

•     A corporation must have a director of minimum, 18 years of age.
•     No residential requirements exist.
•     Corporate directors need not be listed in the Articles of Incorporation.
•     Corporate officers need not be listed in the Articles.
•     Initial filing fees are unaffected by increase in shares or par value.
•     Company records must be kept, stored in location of any choice.
•     All Florida businesses must file a UBR (Uniform Business Report). Annual fee: $150. Reports are due Jan. 1 and are passed due by May 1. Failure to file UBR can lead to administrative penalty and corporate dissolution.

The state of Florida imposes franchise taxes on foreign and domestic corporations for the privilege of doing business in Florida. The current tax rate is 5.5 % of assessed net income. The first $5,000 is except from this assessment.

Companies incorporating as "Subchapter S" Corporations are recognized as legal entities in Florida state. Because Florida doesn't have a personal income tax levy, shareholders of a Subchapter S corporation are not taxed on corporate earnings.

Further, regarding the Subchapter S corporation... During the first year designated as a Subchapter S corp. said company must file Form F-1120, Florida Corporate Income / Franchise Tax Return.

After the initial year S corps are only required to file Florida Form F-1120 if the S Corporation has federally taxable income.

Businesses in Florida are required to obtain a business license for practicing in their locale for a nominal fee.

To summarize, incorporating a business in Florida is a very simple process that can be completed online (www.Florida-Incorporation.com) in a short time. Requirements are really very few, and yet they must be followed closely to avoid penalty or other negative action. There are more than 900 Florida incorporations completed online every day. Will yours be next?