St. Petersburg Business Formation Attorney
Florida Business Attorneys Assisting Clients in St. Petersburg with Business Formations
Are you thinking about starting a new business in the St. Petersburg, Florida area? It is important to know that there are many different types of business structures, and each has its own benefits and limitations. It will be essential to work with a St. Petersburg business formation attorney who can help you to determine which business structure is right for your needs, given the size of your business and your plans for the company in the near future.
Choosing the best structure for your business can be a complicated decision, and you will need to weigh a variety of factors. A business formation attorney at our firm can guide you through the process. Do not hesitate to get in touch with Saady & Saxe, P.A. to learn more about how we can help you to form a new business in St. Petersburg.
Types of Business Structures
When someone is thinking about forming a new business, there are four general types of business structures they may be considering. The U.S. Small Business Administration (SBA) provides information about each type of business structure, and emphasizes that the type of business structure you choose will have an enormous impact on your business. The following are the most common types of business structures with information about each of them:
- Sole proprietorship: This is the easiest type of business structure to form, and it gives an individual complete control over the business. With a sole proprietorship, you do not need to do anything official to start your business. To be sure, as soon as you begin conducting business or doing any kind of business activities, you become a sole proprietor. While those aspects of the business are often straightforward and simple, this kind of business structure has limitations. With a sole proprietorship, the business owner and the business are the same entity—personal assets and debts are business assets and debts, and vice versa. Accordingly, a business owner can be personally responsible for the debts of the business. This is typically a business structure for an individual who wants to test out a business idea in a low-risk manner.
- Partnership: This is the easiest type of business for two or more people to form. You can have either a limited partnership (LP) or a limited liability partnership (LLP). In an LP, one partner has unlimited liability and others have limited liability. With an LLP, all partners have limited liability. In partnerships, profits get passed through to personal tax returns. This is a less formal business structure than an LLC or a corporation.
- Limited liability company (LLC): An LLC has features of both a partnership and a corporation. Members are protected against personal liability, yet profits still get passed through to individual tax returns. Tax rates are also lower than they are for corporations. To start an LLC in St. Petersburg, you will need to file Florida LLC forms with the Florida Division of Corporations.
- Corporation: Most corporations are “C corps,” and this type of business is entirely separate from the business owners. The corporation itself gets taxed, and the corporation itself has liability. Corporations also pay taxes, and business owners receive dividends (on which they pay personal taxes). To form a corporation in Florida, you must file Florida Corporation forms with the Florida Division of Corporations. Sometimes a C corp will convert to another type of corporation called an “S corp,” which limits the double-taxation aspect of C corps.
Contact a St. Petersburg Business Formation Attorney
Do you need help starting your business? Our St. Petersburg business formation attorneys can speak with you today about your options. Contact Saady & Saxe, P.A. for more information.