Corporation Options in Florida
As a business, you have corporation options in Florida that are attractive. One of the better options the State of Florida allows is to register as an S corporation. If this is something that could benefit your business, you will want to contact an Orlando business lawyer who specializes in this particular area to determine if this is a good option for you. There are other options you could use as well that need to be reviewed.
How to Start a Florida Corporation
Corporation options in Florida vary dependent on the specific type of classification. However, a Sub-S corporation is one of the most commonly selected for a number of reasons. These corporations have elected to pass corporate losses, income, deductions and credits to their shareholders. The biggest benefit of using this type of vehicle is the tax benefit that is available for federal taxation. When you have this type of corporation, the shareholders will report the flow through of income as well as losses on their personal income tax returns rather than through the business directly. The shareholders are taxed at the individual’s income tax rates. Therefore, the S corporation avoids double taxation on the corporate income.
Other Rules for Corporation Options in Florida
In order for your business to be registered as an S corporation, it must meet specific requirements on how to start a Florida corporation.
- Your business needs to be a domestic business and to be registered in Florida it needs to operate in the state.
- Your business may only have allowable shareholders including individuals, some types of trusts and estates but it may not have partnerships, corporations or nonresident businesses or people as shareholders.
- You must have one class of stock
Corporation Options in Florida - Resources for You
As you can see, there are some significant limitations on those businesses that are corporations. However, if your business meets these requirements, becoming an S corporation could be beneficial to your bottom line. If you are unsure about these benefits and how they may affect your business, take the time to talk to an attorney who is experienced in these matters. A business law attorney can also provide you with the guidance you need in regards to becoming an S corporation.
Do keep in mind that there may be other corporation options in Florida that are better suited for your business. This is also something an attorney can help you determine before you make a mistake trying to decide on your own. From deciding if an S corporation is right for your business to learning more about the Florida S corporation benefits, an Orlando business lawyer will guide you through the process and the choices so you pick the structure that is best for you in the long term be it an S corporation or not.