You ve got the idea, amassed the startup capital and are now ready to set up your business. Before making another move, take a careful look at the various legal structures for Florida businesses. I don t want to be personally liable for my business debts, and I m willing to file a separate tax form for it. If you selected A, consider setting up your business as a sole proprietorship.
Sole proprietorships are easy to set up and easy to disband.
Sole proprietorships do not file Florida corporate income tax returns, but owners have unlimited personal liability for any debts or other obligations the business incurs. In Florida, at least for now, that liability is limited by the state s homestead rights laws, preventing creditors from seizing an owner s home. If you selected B, consider a partnership as your legal structure. Partnerships, which can be formed as easily as sole proprietorships, allow two or more people to share liability and provide capital. Business income is reported on partners individual tax returns.