Again, each has advantages and disadvantages depending on the circumstances. However, most businesses set up in Florida by foreigners are set up as corporations. Sole proprietorship can be set up by finding a location and opening the door for business. A business name should be registered and necessary licenses obtained. The net profits of the business are taxed as an individual.
Partnerships can be either a general or limited partnership.
A general partnership can be formed simply by an oral agreement between two or more partners. Each partner is totally liable for the obligations of the partnership and each partner pays taxes on his portion of the partnership income. In a limited partnership, typically a general partner is responsible for the partnership and the limited partners, who are usually investors, are liable only for the debts of the partnership up to their capital investment. In specific, they offer limited liability, and so the shareholders are financially responsible for the debts of the corporation only up the amount of their respective capital contribution. At the same time, the corporation is financially responsible only for its own debts and liabilities, not for those of their shareholders.