A sole proprietorship is the simplest way to start a business.For tax purposes, the unincorporated business and its single owner are the same.A sole proprietor has few federal and state start-up costs, but must be responsible for all debts, expenses and profits of the business.If you want to be a sole proprietor in Florida, your start-up paperwork will depend on a number of factors.
Step 1: There are pros and cons to sole proprietorship.
The least complicated business structure you can choose is a Florida sole proprietor.However, it has some disadvantages.It is important to understand the advantages and disadvantages of a sole proprietorship before starting a business.It is the easiest type of business to start.Since you are the sole owner, you have complete control over the business.Your tax preparation is easier since your business is not taxed separately from you, and the tax rates are lower than other business structures.You are personally responsible for the debts and obligations of the business, including any lawsuits by employees against the company, since this is no legal separation between business owner and business in a sole proprietor.It is difficult to raise money for your business since there is no stock to sell and some banks are reluctant to lend to a sole proprietor for fear that the owner will not be able to repay the debt if the business fails.The sole proprietor of a business is responsible for whether the business succeeds or fails.
Step 2: A business plan should be written.
A business plan is a plan for the future.It explains the services or products that you provide, outlines your plan to increase revenue, and gives you an opportunity to outline your goals and ethos of your business.3 to 5 years is how long your business plan will project into the future.An executive summary is a part of a business plan.A company description that explains what the business does and how it is different from other businesses in the field is needed.A section outlining the market for your business that sets forth the state of the industry outlines your main competitors.Business organization and management is outlined in a section.A brief section about how you intend to run day-to-day operations is possible.A description of its usefulness to customers is included in a section about the service or product you sell.A plan to market and sell your product is in the section.If you are seeking financial support or funding, you should include a request for funding for your business as well as a section that outlines your financial projections.
Step 3: You can choose a business name.
A sole proprietor in Florida can use either his or her own name or an assumed name.A DBA is also known as a trade name and is the name that you are doing business as.A name that reflects your brand is what you want.If you don't use your own name, it may be harder to build a business.How does the business name look on stationery or a logo?Do you have any negative connotations with the name that you chose?Does the company's name reflect its ethos?Did you choose a unique name that isn't registered to someone else and is not being used as a domain name on the internet?Individuals can use the trademark search tool on the U.S. Patent and Trademark Office website to check if a business name has already been trademarked.
Step 4: Do you know if your business name is available in Florida?
Individuals can use the Florida Department of State's website to check if a business name has already been registered in the state.Search for your business name to make sure that it isn't already used.
Step 5: You can register your name with the Department of State.
If you choose a unique business name, you must register it with the Florida Department of State.You can register your business name by either completing a Florida Fictitious Name Form online or mailing it to the appropriate office.The Fictitious Name Form requires you to provide personal and business information.A certified copy of your name registration is required for a fee of $30.To open a bank account under the company's name, you will need a certified copy.You can either complete the form or download it.The completed form and fees can be sent by mail.
Step 6: An employer identification number is required.
The federal tax id number is used to identify businesses for tax purposes.If you own a business in Florida, you must have an EIN.If your business does not have employees, you may be required to have an EIN to open a bank account.It is possible to reduce the risk of identity theft by obtaining a separate EIN for your business.You can apply for an EIN online with the IRS.
Step 7: Your business name can be advertised in a Florida newspaper.
Florida law requires you to advertise your business's name at least once in the county in which your main place of business is located.If you want to advertise your business, you should search for newspapers in your county.
Step 8: You can open a business account.
You should open a new account in the name of your business if you want to establish a separate business bank account.You can keep your business and personal assets separate.You need to bring your Fictitious Name registration with you to open the account.
Step 9: You need liability insurance for your business.
Since sole proprietors are personally responsible for any debts and obligations that their business incurs, it is a wise business decision to purchase a business liability insurance policy.The policy protects a sole proprietor from unforeseen business debts.
Step 10: If applicable, apply for a business license.
Florida requires certain businesses to apply for a professional license in order to do business in the state.The Florida Department of Business and Professional Regulation has a website where you can apply for your license.If you don't know if you need a license, you can call the Department's Customer Contact Center.Alcoholic beverages and tobacco are required for licensure in Florida.Architects.There are contractors and consultants.Athletes are agents.They are auctioneers.There are barbers.There are boxing, kickboxing and mixed martial arts.Code administrators and inspectors.Certified public accountants.Community association managers.There is a construction industry.The person is a hairdresser.The program includes drugs, devices and cosmetics.There are electrical and alarm contractors.Inspectors and companies.There are employee leasing companies.There are geologists.The harbor pilots.Home inspectors.There are hotels, Motels, Apartments and other places to stay.Interior design.Landscape architecture.Services related to mold.There are wagering facilities.There is real estate.Caterers and mobile food vendors.There are talent agencies.There is veterinary medicine.Salespersons and yacht and ship brokers.
Step 11: If applicable, apply for federal licenses.
If your business is involved in activities that are regulated by the federal government, you may be required to apply for a federal license or permit.You would apply for a permit at the agency that regulates your business.Federal licenses and permits are required for agriculture, including the transport of animals, animal products, biologics, and plants across state lines.You would need a permit from the USDA.If your business is related to the manufacture, import or sale of alcohol, you should apply for a permit from the U.S. Treasury's Alcohol and Tobacco Tax and Trade Bureau.If your business involves aircrafts, you may have to get a permit from the FAA.If your business involves firearms, you should apply for a license with the Bureau of Alcohol, Tobacco, Firearms and Explosives.If your business is involved in wildlife-related activity, apply for a permit through the U.S.The Fish and Wildlife Service.If you are involved in commercial fishing, you may need a permit.Obtain a license from the Federal Maritime Commission if you provide maritime transportation.The Bureau of Ocean Energy Management, Regulation and Enforcement has a permit for mining and drilling for natural resources.Nuclear energy can be produced with a license from the U.S. Nuclear Regulatory Commission.You have to get a license from the FCC if you are in radio or television broadcasting.To find out if you need a permit, check with the U.S. Department of Transportation.
Step 12: You need to register with the Florida Department of Revenue.
You have to register with the Florida DOR in order to collect business tax.If you don't have any employees, the taxes that you collect are business dependent.Most businesses are responsible for at least some type of tax, such as sales tax or unemployment taxes, if you apply for a license to collect tax directly on the Florida DOR website.New business owners can request a Florida Start-up Kit from the DOR.All business taxes should be sent to the state on a monthly, quarterly or annual basis.
Step 13: Comply with new hire requirements.
If you hire employees, you need to register for unemployment compensation with the Florida Department of Revenue.You can file your report on the DOR website, but you will have to provide your EIN.You have to report new hires within 20 days.
Step 14: Workers compensation insurance can be provided.
If you have more than 4 employees, you must provide workers compensation insurance.
Step 15: You need to meet your federal tax obligations.
You have to file a number of tax documents with the IRS if you are a sole proprietor.You can download forms from the IRS website.If you owe income tax, you may be responsible for filing documents with the IRS.There is a self-employment tax.Estimated tax.Social security and Medicare taxes are included in income tax withholding.Information on social security and Medicare taxes is provided.Federal unemployment tax.Payments to non-employees and transactions with other persons are returned in the form of filing information.There are excise taxes.