Tips for Starting a Small Business

Starting a business in Florida is no easy task. It takes a tremendous amount of focus, dedication, and knowledge of laws and other business regulations. Florida has over 19 million residents and the second-highest density of startups in the United States, making it a popular place to dive into business. New entrepreneurs are constantly flocking to Miami, bumping Florida as a whole to 100 startups per 1,000 firms. 

Choosing your entity type is the first step in officiating any small business. The three most common options are for-profit corporations, limited liability companies (LLC), or a nonprofit. A for-profit is owned by a group of individuals with limited liability that will pay corporate income tax. An LLC is similar, but the income is reported on an individual’s income tax, forgoing the corporate income tax altogether. Nonprofits can be tax-exempt, most commonly found in churches and charities. 

You will also need to consider funding for your business. There are many options to explore, such as SBA loans and short-term loans. Many banks have small business loans, however not everyone will qualify, but a loan advisor will walk you through your options. 

You may need a business license. There are two ways you can do this, either through The Department of Business and Professional Regulation (DBPR) or The Department of Agriculture and Consumer Services (DACS). 

The DBPR provides licenses for companies such as barbers, home inspectors, and restaurants. The DACS provides licenses for an extensive range of services, like bookkeepers and telemarketers, and the food industries. 

It can be tricky to understand which is suitable for you but talking to a lawyer who consistently works with entrepreneurs. The entire lifecycle of starting a small business can be confusing as it changes from one entity to another. Lawyers at Alvarez & Diaz-Silveira walk with small business owners through every stage of the process, from starting information to capital structuring and even late-stage financing and liquidity events. Do not let yourself be burdened with the stress of figuring this out alone. Call us at 305.740.1940 to get started.