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How to Form Your LLC in Florida

Date: 01/10/2022 | Category: | Author: developers

How to Form Your LLC in Florida?

Florida situated in the southeastern region of the USA is considered as the fourth-largest economy in the nation. Florida is home to startups, small businesses and large corporations and you can choose to go with any structure that provides you with the advantages you desire. This article provides an insight into how you can form a Florida LLC, the benefits, the various steps towards successful business formation and operations like LLC name, tax ids, annual filing, licensing and permits, and Florida LLC registered agent services.

LLC in Florida

Florida is home to 18 companies that have been featured in the Fortune 500 list and this includes Publix Super Markets, Tech Data, World Fuel Services, MasTec, Fidelity National Information Services, NextEra Energy, and Hertz Global Holdings among others. There are better known cities like Orlando and lesser known cities like Doral, which have captured headlines by dominating the list of most favored cities for startups in the state. Entrepreneurs and first time business owners are increasingly opting to locate their business or start an LLC in Florida especially in cities like Daytona Beach, Doral, Delray Beach, Weston, and Lauderhill among others.

What is Florida LLC?

If you are planning to form a Florida LLC then it is important to first identify what a limited liability company really is. It is in fact one of the most popular forms of businesses in Florida and across the nation owing to the number of benefits it has over other business structures. One of the salient aspects of an LLC is that there are several types of LLCs that you can choose from. Some of them are:

  • Single-Member LLC or Sole Proprietorship
  • Series LLC
  • Member-Managed LLC
  • Manager-Managed LLC
  • Restricted LLCs
  • L3C Company
  • Anonymous LLC

The formation of a limited liability company is governed by Florida Statutes, Title XXXVI – Business Organizations, Chapter 605 – Florida Revised Limited Liability Company Act. A top Florida LLC registered agent like IncParadise can help you with the process of forming a limited liability company in the state.

What are the benefits of forming an LLC in Florida?

Entrepreneurs and new business owners prefer to start an LLC in Florida due to the many benefits this type of business structure has. Some of the top benefits are:

  • Once you register a Florida LLC, you can enjoy several benefits. One of the primary advantages is that a limited liability offers protection. This is also known as “Limited Personal Liability” because it limits personal liability. This is possible as an LLC is legally separate from its owners and hence, a limited liability company is responsible for its own obligations and debts.
  • Florida LLC rules are quite flexible and ensure business owners have less paperwork as compared to other forms of business like corporations.
  • One of the biggest advantages of a limited liability company is “pass-through” taxation. If you register a Florida LLC then the income and expenses of the limited-liability company will be passed through to the personal tax returns of the owners or members.
  • One of the salient aspects of the Florida LLC rules is that there is a lot of management flexibility. An LLC doesn’t require a formal structure and the owners enjoy more choices with regards to making decisions and how to run their businesses.
  • Once you form a Florida LLC, you will be able to apply for a variety of business incentive programs administered by Enterprise Florida, local cities and counties like the City of Orlando, and Florida Department of Revenue among others.

Forming an LLC in Florida

Florida is a pro-business state that has been focusing consistently on aggressive economic development. The state has a potentially huge market for retail and manufacturing businesses as well as trade. If you are planning to start an LLC in Florida then there are several processes involved. We have explained each relevant process in a step-by-step manner as follows.

1. Choose Florida LLC name

The first step towards new business formation is identifying a name for your business. A Florida LLC can register a fictitious business name also known as DBA (Doing Business As) or reserve a business name. There are certain LLC naming guidelines that you are required to follow along with Florida LLC name search. The guidelines are:

  • The chosen name should contain “limited liability company” or abbreviations like L.L.C or LLC pursuant to Florida LLC rules – FL Stat § 605.0112 (2013).
  • The business name should be distinguishable from the names of any other entity that exists in the records of the Florida Division of Corporations except for fictitious name registrations.
  • The chosen name according to Florida LLC rules should not contain any language that implies or states that the LLC in question is connected in any way with a Federal or state government agency.

Once you have identified a business name; you need to conduct a Florida LLC name search also known as business name availability search. If your chosen name is available then you will be required to apply for reservation of the specified name by submitting a letter specifying the said name, to the office of the Florida Secretary of State. The name can be reserved for a period of 120 days pursuant to FL Stat § 605.01125.

2. Choose a Florida LLC registered agent

There is a process involved to start an LLC in Florida and this involves filing of the right documents, ensuring submission of correct information, and maintaining compliance with all state laws. As an entrepreneur not familiar with the business and legal landscape of Florida, you may face a certain level of difficulty where Florida LLC statutes regarding a new business are concerned. This is where a Florida LLC registered agent like IncParadise can provide valuable assistance.

In order to register a Florida LLC, it is mandatory to designate and continuously maintain a registered agent in the state pursuant to FL Stat § 605.0113 (2013). IncParadise can be your Florida LLC registered agent as we are committed to not only handling service of process as required by Florida statutes but can also assist you with the process of forming a new business and fulfilling annual requirements as required by the state.

3. File Articles of Organization with the Florida Division of Corporations

Now you have thought of a business idea so what next? In order to make the idea come to life, you need to choose a business name and structure, and then register the business in the state. If you plan to form a Florida LLC then the documentation required for registration is the “Articles of Organization” pursuant to FL Stat § 605.0201 (2013). The filing fee of the LLC formation documents is $125 and this fee includes designation of registered agent as well. As per Florida LLC rules, you will need to submit a “Cover Letter” along with the Articles of Organization that has to be mailed to the New Filing Section, Division of Corporations. We at IncParadise can assist you with the process of Florida LLC registration.

4. Prepare LLC operating agreement

An LLC operating agreement will be required if you are planning to start an LLC in Florida. It is a type of contract between the members or owners of a Florida limited liability company and it regulates the contributions of money by members to the LLC, distribution of company profits, and process of decision making within the organization. A reputable Florida LLC registered agent can provide guidance on the drafting of an operating agreement as it is quite similar to the Articles of Organization.

The scope, function, as well as limitations of an LLC operating agreement is governed by FL Stat § 605.0105 (2013). According to the Florida LLC rules and statutes, a properly drafted agreement should include the following:

  • The names of the members of the limited liability company
  • The duties pertaining to monetary contribution or services by each member towards the LLC
  • The distribution of profit made by the Florida limited liability company
  • The percentage of membership interests that is being allotted to each member and the proposed method of interest valuation
  • The economic interest of each member towards LLC profit and property
  • Detailed voting requirements and voting procedure for decisions of the LLC
  • The responsibility as well as extent of authority of the manager of the limited liability company
  • The transferability of Florida LLC interest to various third parties
  • Outline of the process by which the concerned Florida LLC will exit or wind up its business

5. Obtain EIN

EIN is known as the Employer Identification Number and also the Federal Employer Identification Number (FEIN). When you form a Florida LLC, especially a multi-member LLC then you will need to apply for and obtain a unique 9 digit tax ID number. This number is assigned by the Internal Revenue Service (IRS) and used by businesses for tax reporting purposes although there are several other benefits of EIN as well. You can apply for the Employer Identification number directly with the IRS and if you hire a Florida LLC registered agent like IncParadise then we can help you obtain this tax ID.

6. Obtain the necessary business licenses and permits

Florida has a robust economy, a strong infrastructure as well as a competitive tax climate, which makes it a favorite location for entrepreneurs to register a Florida LLC. Once you form a business in the state, among other requirements; you will need to apply for and obtain the necessary business licenses and permits. Depending on the type of business activity and industry, you will have to obtain your license from the State of Florida agencies like the Department of Business & Professional Regulation (DBPR) or with the county your business is situated in.

For example: If you start an LLC in Florida in Orange County then you will need to obtain a business tax receipt, which is like a business license. Now, if you plan to start a restaurant that serves food and liquor then you will require multiple licenses and permits. You will have to ensure you are compliant with Florida LLC rules pertaining to Orange County zoning laws. Some of the aspects to consider while starting a food establishment in Orange County include the following:

  • As a restaurant or food establishment requires you to occupy commercial space, you will need to apply for a “Use Permit” pursuant to Orange County Code Sec. 23-98 (a) (14). You will have to apply with the Orange County Business Tax Receipt Office for the same.

  • You will also need to get approval from the Zoning Department under the Division of Building Safety.

  • You will have to apply to the Division of Hotels and Restaurants

  • You will have to apply for a business license or permit for food establishment with the Division of Hotels and Restaurants pursuant to Chapter 61c-4 of the Public Food Service Establishments under Florida LLC rules.

  • If you are serving liquor on the premises of your food establishment then you will have to apply for an Orange County Liquor License based on the type of liquor and type of business. A Restaurant serving “Beer, Wine, and Spirits” has an annual licensing fee of $1365 while that of “Beer only” is $280.

A Florida LLC registered agent like IncParadise can provide information and guidance pertaining to your business license requirement in the state. You can also make use of our Business License Research Report for detailed information on permits and licenses in Florida.

7. Open a bank account

When you register a Florida LLC you will need to ensure you are able to make and receive payments related to the business with ease. This is where a bank account to handle all your LLC transactions can be quite helpful. A business bank account is recommended because it helps segregate personal finances from those of the LLC and ensures clean maintenance of account books. This will also help you to track the annual cash flow of your business leading to efficient tax returns.

8. Comply with taxes and other regulations

Once you form a Florida LLC, you may be required to pay some form of tax, which may also be dependent on your business activity. Although the overall tax burden of Florida is less, some of the important taxes collected in the state of Florida include the following:

  • Property Tax
  • State Corporate Taxes
  • Florida Sales Tax

The Florida sales tax is levied on mortgages, notes, liens, bonds, and a variety of written obligations. There is a state sales tax of 6% and then there is Hotel tax, Gas tax, and Electricity tax.

9. File LLC annual report

When you form a new business in the state of Florida there are certain annual requirements that your business needs to be compliant with or fulfill. One of the important requirements after you register a Florida LLC is that of a Florida Annual Report. According to the Florida LLC rules, FL Stat § 605.0212 (2013); a limited liability company operating in the state has to file an annual report with the Florida Division of Corporations.

The first annual report has to be submitted online or delivered to the Division of Corporations between January 1 and May 1 in the year following the year of new business formation.

For example: If you form a Florida LLC on Oct 24, 2021 then you will have to file your annual report between January 1 and May 1, 2022. Subsequent annual reports according to Florida LLC rules have to be delivered between January 1 and May 1 of each calendar year from there onwards. If you fail to file your annual report on time then there is a penalty or late filing fee of $400.

It’s easy to start a Florida LLC with IncParadise!

Know more about starting a Florida LLC!

If you are planning to start an LLC in Florida, then you may be faced with several questions that need to be addressed. You may have questions pertaining to the cost of registering in Florida like the annual fee, disadvantages of forming in the state, Florida LLC registered agent services, and much more. Hence, we have created this section of “Frequently Asked Questions” for addressing some of the most common queries that a startup or entrepreneur may have.

Is Florida a good place to start an LLC?

Florida has always been on the global map when it comes to tourism but did you know it is a great place for starting an LLC? The state offers several benefits to small businesses, startups as well as medium sized enterprises. Some of the top benefits include:

  • Variety of economically growth oriented industries where you can form a Florida LLC
  • Robust infrastructure and logistics environment to provide all the support a new business requires
  • Business and funding events, seminars, and conferences for entrepreneurs and small businesses
  • A pro-business tax climate along with asset protection benefits
  • Florida is home to several foreign-trade zones (FTZ) where merchandise is not subject to custom duties and tariffs as well as other ad valorem tax.
  • There are 427 Qualified Opportunity Zones where businesses can enjoy deferred and reduced taxes.

How much does it cost to register an LLC in Florida?

If you are planning to register a Florida LLC then there is a one-time cost of $100 for both domestic and foreign LLC’s. There will be other costs associated with forming an LLC like Name Reservation ($25) and a mandatory Registered Agent Fee of $25.

What are the annual fees for a Florida LLC?

According to the Florida LLC rules and statutes, every limited liability company conducting business in the state has to file an annual report with the Division of Corporations. The fee for the Annual Report is $138.75. An integral part of the new business operation is obtaining a business license or permit. The fee will vary according to the type of license and the type of business activity and this license will have to be renewed each year.

What are the disadvantages of forming an LLC?

An LLC or limited liability company is one of the most popular forms of businesses in Florida because of the several advantages it has over other forms of entities. It is also important to understand that if you start an LLC in Florida then there may be certain disadvantages of this type of entity. Some of the disadvantages are:

  • Initial and ongoing costs – A Florida limited-liability Company is quite easy to set-up but certain initial and ongoing costs makes it expensive to create and maintain this type of entity.
  • Business ownership transfer – If you form a Florida LLC then ownership transfer in a limited-liability company is a difficult and complex process. If the said LLC has any debts then ownership transfer may become extremely difficult.
  • Limited Case Law – A limited liability company is a type of entity that is fairly new as compared to corporations, sole proprietorships, and partnerships. Hence, there is a limited legal precedent that one can draw from if any dispute arises.

Do I need a registered agent for my Florida LLC?

A Florida LLC registered agent is mandatory for every domestic or foreign limited liability company planning to register and operate in the state pursuant to FL Stat § 605.0113 (2013). You can hire IncParadise in Florida as we are well versed with the requirements of an LLC and can help you to be compliant with the relevant LLC statutes and new business requirements and regulations. We are one of the top registered agents in the state and have been responsible towards helping form more than 10,000 businesses.

Does an LLC need a business license in Florida?

Yes. If you start an LLC in Florida then your company will be unable to operate till you apply for and obtain the necessary business licenses and permits. The type of business license required will depend on the business activity. You can subscribe to our Business License Research Report service as it provides detailed information on several aspects of licensing in the state.

Can I register a foreign LLC in Florida?

Yes. You can register a foreign limited liability company in Florida although the process would be different from that of a domestic LLC. The Florida LLC rules and statutes, FL Stat § 605.0902 (2013) state that you will be able to transact business in the state only if you apply for and obtain a certificate of authority. It is also known as the “Qualification of Foreign LLC” application and has to be submitted with the Registration Section, Division of Corporations along with a cover letter and certificate of existence.

Can I cancel my LLC in Florida?

There are several reasons for dissolving a limited liability company, some of which may be purely personal and some financial or business related. Once you register a Florida LLC; the only way to cancel is by filing Articles of dissolution pursuant to FL Stat § 605.0707 (2013). The articles can be submitted online or can be submitted via mail with the Registration Section of the Division of Corporations. The articles have to be submitted along with a cover letter and a filing fee is $25.

Ready to form a Florida LLC?

There are different types of business structures that you can choose from in Florida as it is a popular destination for entrepreneurs owing to the many advantages the state offers. If you are planning to form a Florida LLC there is a registration process that requires you to submit a variety of information and documentation. This is where IncParadise can assist you with the formation of your new businesses in the state.

IncParadise is a highly reputable Florida LLC registered agent and we have helped thousands of companies to start their businesses with ease. We also offer a wide variety of additional services like foreign qualification, EIN assistance, and certificate of good standing or certificate of existence in Florida among others.

Form an LLC in Florida with us effortlessly!

Start a Business in Florida

Date: | Category: | Author: developers

Start a Business in Florida

Florida, situated in the Southeastern region of the US, is one of the largest economies in the world. It is home to a diverse market with manufacturing, tourism, and agriculture being key players in driving the economy. If you are planning to start a business in Florida then there are several industries and cities where your business can be set up with minimum startup costs and enjoys rapid growth including Coral Gables, Sebring, and the northern Orlando suburb of Maitland.

Entrepreneur’s guide to form a business in Florida

The state of Florida is one of the strongest economies and is home to 19 Fortune 500 companies including Publix Super Markets, World Fuel Services, NextEra Energy, and Office Depot. The state has also been ranked #4 by Tax Foundation in their list of best states for business tax climate in 2021 ahead of heavyweight states like California, Delaware, and Massachusetts. The pro-business climate makes it a popular destination amongst entrepreneurs to start a business in Florida.

Although Florida has consistently ranked among the top states for a startup; it is never really easy to start a business. Whether you are planning to start a home-based business, an e-commerce, or a mid-sized enterprise; there is a lot of attention required when it comes to visualizing the future prospects, growth patterns, existing and newer markets, and above all a strong strategy and revenue generation model. A Florida registered agent like IncParadise can assist you with the process of forming a new business but making it grow and expand will depend on how robust and strategy oriented your business plan really is.

This guide has been specifically created to help you understand the various requirements of a startup including filing requirements in Florida. The guide will take you through various stages of a startup right from choosing a business structure to preparing a business plan, applying for a Florida business license, the importance of attending entrepreneurial training programs, choosing the right location, and getting a Tax ID like EIN among others. This guide is essentially meant for small business owners planning to register a business in Florida.

Why do companies prefer to incorporate and register in Florida?

Entrepreneurs and new business owners prefer to start a business in Florida because of the numerous benefits that the state offers. The state has a pro-business climate, competitive costs of conducting business, pro-business state tax policy, streamlined regulatory environment, and business incentive programs that encourage growth. One of the salient aspects of this state is that the government, policy makers, and economic development agencies work hand-in-hand to ensure the stability and consistency of the existing business climate for all forms and sizes of businesses, thus making the process to incorporate in Florida easier. There are several other advantages for starting a new business in this state and they are:

  • Strong and Robust Economy – Florida popularly known as the “Sunshine State” has been experiencing rapid economic and industrial growth. The $1 trillion economy is now the 4th largest economy in the nation and is ranked 16th in the world. It is always beneficial to start a business in Florida during these times of robust economic growth as it drives consumer spending as well as business investment. In a growing economy, both existing and new businesses will enjoy greater prosperity. One of the top industries where high economic growth is now a trend is the tourism industry. You can incorporate in Florida online or offline in the tourism industry, which is one of the industries driving the economy. The industry encompasses a wide variety of sub-industries or sectors like the food and beverage (F&B) sector, accommodation services, travel services, conferences and events, and transportation services among others. The Tourism industry in Florida generated $27.6 billion in 2019, which was a 5.8% increase from tax receipts generated in 2018.
  • Low Tax Burden – There are several benefits that attract entrepreneurs to start a business in Florida. One that stands out is the state having a low tax burden. Florida is ranked 6th in the list of states having a low tax burden and this includes the fact that the state doesn’t impose income tax on individuals. The corporate income tax rate is currently 4.458% and will increase to 5.5% for tax years starting from Jan. 1, 2022. The corporate income tax rate is lower than some other states like Idaho, California, and New Jersey. One of the factors that also contribute to the low tax burden in the state is the availability of tax incentives in the form of tax credits and exemptions. You can leverage these incentives only after you incorporate in Florida or form your new business.
  • Access to Capital – One of the important reasons for first time business owners to start a business in Florida is the access to capital required in the initial stages of a startup. There is a startup cost for every small business and this cost will vary from one business to another. There is a wide variety of financing programs including loans and grants that you can apply for after you incorporate in Florida online or offline.

The state of Florida provides numerous benefits and advantages to first time entrepreneurs, startups and small businesses. These benefits or advantages help businesses to achieve stability and growth in the long-term.

Steps to start a business in Florida

Florida with its strong economy, robust infrastructure, and competitive tax climate has been attracting small businesses and startups to be formed across various industry sectors. The scale as well as scope of industry assets of Florida is almost unmatchable. There are nine key business industries and several sub industries where you can register a business in Florida but before you form a startup, it is important to identify the key requirements to incorporate in Florida.

1. Prepare a Florida Business Plan

If you plan to register a business in Florida then there are several processes involved but before taking a deep dive into these processes, you need to focus on creating a business plan. It is known by different names like strategic plans, internal plans, operational plans, and even lean plans and they will vary according to the specific requirements of a business. Such a plan is an important as well as strategic tool for any new business or startup as it encompasses several areas and considers key aspects that help define business goals, planning, operations, objectives, and revenue generation. Some of the key aspects of a good business plan are:

  • Company Description / Executive Summary
  • Market Analysis
  • Business Model and Competitive advantage
  • Analysis of Competition
  • Business Structure, Management and Organization
  • Products and Services
  • Marketing Plan
  • Financial Plan
  • Income projections and Sales forecasts

A business plan is an essential requirement to incorporate in Florida as it will also identify state based requirements like Tax ID or EIN, business license, annual requirements of the business, name registrations, and much more. A strong and detailed business plan will also help you in raising money for your business through loans, grants, and other investments. There are several short and long-term benefits of a good business plan including the fact that it will help you to identify potential risks or risk areas and ensure you are able to address them.

2. Attend Entrepreneurial Training or Development Programs in Florida

The Early-Stage Entrepreneurship series is a report under the Kauffman Indicators of Entrepreneurship and it indicates that Florida is considered a state conducive for starting a new business or startup. You can start a business in Florida anytime as it has a pro-business climate and this environment also consists of access to relevant resources like entrepreneurial training and new business development programs.

The importance of an entrepreneurial training program lies in the fact that it provides individuals with an aptitude for identifying various business opportunities, helps boost their self‐esteem, and imparts necessary knowledge and skills. Such programs also include instruction regarding chance identification, commercializing of a business idea or concept, managing of resources, and initiation of business speculation. These development programs help in bringing out leadership qualities in a small business owner or entrepreneur and thus help them to incorporate in Florida successfully.

You can enroll for a variety of Entrepreneurial Training or Development Programs before you register your business in Florida. This will ensure you have the necessary skill sets and knowledge to make the business operational. The Florida Department of Education provides Entrepreneurship Education and Training (EET) Grants and Webinars related to Entrepreneurial Training opportunities.

There are several Entrepreneurship & Innovation Centers across the state that offer business development courses and workshops targeted at small business owners. You can also participate in different entrepreneurship events including inspirational startup events and entrepreneurial meet-ups across the state before or after you incorporate in Florida online.

3. Choose a Business Structure for your Florida Business

One of the important requirements to incorporate in Florida is choosing the right business structure. A business structure or form of business plays a defining role when it comes to cost of new business formation, annual maintenance requirements, and the type of taxation applicable. You should ideally register a business in Florida only after you have identified the structure that fulfills all your requirements or needs. Some of the aspects of a business structure that are considered for making this decision include the following:

  • Federal and state taxation
  • Asset protection
  • Access to loans, grants, and capital
  • Startup and business maintenance as well as operational costs
  • Business management
  • Flexibility of the chosen structure
  • Ownership change and existence of business
  • Transferability of ownership interests

You will need to compare the above aspects with the different business structures that are allowed in the state of Florida. You can start a business in Florida as any of the following:

4. Naming Your Florida Business

Every new business or startup requires a business name. The purpose of a name whether of an individual or a business is the same, which is providing a unique identity. When it comes to creating a business name, the process can be challenging for entrepreneurs as the name has to be in accordance with the Florida Statutes for business organizations. There are a few steps for identifying a name that will help you to register your business in Florida.

  • Step #1 – You need to ideate. A business name should be simple and easy to pronounce for customers. It should also state what type of products or services the business is offering.
  • Step #2 – Once you have identified such a name, you need to ensure it follows the Florida statutes.
  • Step #3 – Once a name has been created, you need to conduct a name availability search. If the name is unavailable or has already been taken then you need to go through steps 1 and 2 again.
  • Step #4 – If the chosen name is available then you need to register it. In most states, a business name is reserved using a name reservation form but in Florida, you have to file an “Application for Registration of a Fictitious Name”.

    For example: If you are planning to incorporate in Florida online or offline then the name should contain the words “corporation” or “incorporated”. Alternatively, you can also use abbreviations like “Inc.” or “Co.” There are several other requirements pursuant to FL Stat § 607.0401 (2014) like it should be distinguishable from any other name or entity that exists in the records of the Division of Corporations.

The fictitious name also known as DBA is one of the requirements to incorporate in Florida and has to be renewed every year by December 31st irrespective of the date you register a business in Florida.

5. Choose Your Location for your Florida Business

One of the key areas to focus on before you start a business in Florida is identifying the right location for your business. There are several factors that govern whether a specific location is good for the growth of a business or not; for example, accessibility to ports or transportation hubs. The choice of location is also dependent on the requirements of a business. For instance a retail store can be opened in any of the top cities but a manufacturing unit would need to be located in economic development regions or zones. The important factors to consider before you incorporate in Florida online are:

  • Accessibility – This includes local, national, and international access in terms of transportation
  • Central Location – This refers to how accessible your establishment for customers and employees are and takes into account roadside visibility and parking space
  • Security – Is your location a crime prone zone or is it a low risk zone?
  • Proximity to competing businesses – This factor is a growth determinant as more competition in your area can be a deterrent
  • Skill base availability – If you start a business in Florida that requires employees then you will need to zero in on a location where skilled employees are easily available.
  • Demographics – Does your target audience reside in the chosen location especially if you have a physical business like a law firm or a restaurant
  • Local Ordinances – Most states have zonal permits and local ordinances that govern the operations of a business and hence you need to check them prior to applying for a Florida business license.

6. Register Your Business with the Florida Department of State

Florida is considered as one of the favored destinations for new businesses, startups, and especially manufacturing businesses that account for nearly 5.39 percent of the total state output. As an entrepreneur you can start a business in Florida in manufacturing or any other industry including tourism, which is considered as the largest economic industry in the state. The question is how do you form a new business or what is the process? One of the primary requirements to incorporate in Florida is to register your business.

The registration application will depend on the type of business structure. For instance, forming an LLC will require you to file “Articles of Organization”. Similarly, if you were to incorporate then you will be required to file the “Profit Articles of Incorporation”. The formation of either type of business will be governed by Florida Statutes, Title XXXVI – Business Organizations and you can form or incorporate in Florida online. The filing fee is different for different business structures. It is $35 for a corporation and $100 for a limited liability company.

The process to register a business in Florida will require you to be compliant with all requirements as mentioned by the Division of Corporations and the Florida Statutes. You will be required to submit the application to form a new business in Florida while ensuring all information provided is correct and factual. This is where a reputed Florida registered agent like IncParadise can provide valuable assistance by helping you to incorporate or for your startup in the state.

We can assist you with new business formation in Florida

7. Get Your EIN

One of the important requirements for most entrepreneurs planning to register a business in Florida is the Employer Identification Number (EIN). This is basically a Federal Tax Identification Number (FEIN) that is issued by the Internal Revenue Service (IRS). This unique identification number is required by businesses for filing their annual tax returns although having an EIN has many more benefits depending on the type of business. You can use an Employer Identification Number to apply for credit and also for opening a business bank account.

8. Open a Business Bank Account for Florida Business

As an entrepreneur or a new business owner, it may seem easier and quite convenient to use your personal bank account for all your new business transactions. However, applying for a business bank account is always a better idea. This type of account is often known as a checking account or a merchant services account. The primary use of this type of bank account is to facilitate business transactions like accepting payments from customers as well as vendors. You can apply for and open a business banking account before or after you register a business in Florida. Some of the benefits of a business checking account are:

  • It will help in separating personal and business expenses and gains
  • The account will keep your business records organized
  • The business bank account helps build a business credit rating
  • Since it is separate from personal banking, it will ensure your tax return filing is simple
  • The account will help you to set up retail point of sale systems
  • Your business bank account can have a single or several signers

9. Obtain Necessary Business Licenses and Permits

Once you register a business in Florida, the immediate requirement to start operations is a business license. A Florida business license will help make your business operational according to the state statutes and local laws. Businesses cannot transact in the state without proper licensing or permits. Depending on the type of business, you may require a single license or permit or multiple licenses. Permits and licenses in Florida can be categorized as under:

Business Tax Receipt

In the state of Florida, there is no general Florida business license as such but it is known more commonly as a “business tax receipt”. The Local Business Tax Receipt is issued by the county in which your business is situated. The business tax receipt is applicable only for those businesses or entrepreneurs that are selling services or merchandise in the county they are located in. You will also be required to obtain city or municipal zoning approvals while ensuring complete compliance with regulations of zoning, health and other lawful authorities.

Example: If you start a business in Florida and it is located in Palm Beach County then you will need to first get local zoning approvals pursuant to Section 17-17 of Palm Beach County Ordinance No. 72-7. You will then need to file an Application for Palm Beach County Local Business Tax Receipt with the office of the Palm Beach County Tax Collector. You will also need Regulator Signatures from the departments of Fire Marshal, Health, and other Zoning authorities depending on the type of business activity.

Industry Specific Licenses

Industries are an important part of the Florida economy and if you start a business in Florida in a specific industry then you may need to apply for a business license. Florida Statutes and local regulations require licensing and permits for certain industries. This is a type of Florida business license that is issued by a governing body or a state agency. Let us look at an example to understand how it works.

Example: If you were to register a business in Florida as a restaurant or a food establishment then you will need to apply for a license from the Department of Business and Professional Regulation. The Retail Food Establishment industry requires permits or Florida business licenses for a variety of food establishments including grocery stores, coffee shops, convenience stores, retail meat markets, bakeries, juice and smoothie bars, retail seafood markets, and businesses selling pre-packaged food among others. The fee for the permit or license will vary according to the type of establishment. For example, an annual fee for a retail bakery is $355 while the fee for a mobile vendor is $300.

If you want to know more about a Florida business license then you can find information and resources with the Division of Library and Information Services or alternatively, you can opt for our “Business License Research Report” service, which entails providing a research report containing a list of filing instructions, supporting document requirements for business licenses and fees for all business permits and licenses in Florida.

10. Register for Taxes

There are several requirements to incorporate in Florida and one such requirement is registering for taxes. As a new business or startup, you may be required to register with the Florida Department of Revenue for collection and remittances of fees and taxes especially if your business is engaged in taxable activities. If you incorporate a business that proposes to sell taxable goods or services in Florida, then you will be required to register for sales and use tax prior to conducting business in the state. In order to register for taxes, you will have to file the “Florida Business Tax Application” or register online with the state Department of Revenue. This registration will enable the collection and payment of the following taxes and fees:

  • Sales and Use Tax
  • Communications Services Tax
  • Prepaid Wireless E911 Fee
  • Documentary Stamp Tax
  • Reemployment (Unemployment) Tax
  • Gross Receipts Tax on Dry-Cleaning
  • Gross Receipts Tax on Utility Services
  • Rental Car Surcharge
  • Lead-Acid Battery Fee
  • Severance Taxes
  • Miami-Dade County Lake Belt Fees
  • New Tire Fee

The registration for taxes is compulsory if you are planning to start a business in Florida. There is specific information that you have to furnish during tax registration depending on the type of business and form of taxes like business activity, location of the business, and starting date of the company. A Florida registered agent like IncParadise can provide you with information pertaining to taxes in Florida and how to apply for and obtain an EIN. The Employer Identification Number (EIN) will be required for filing of any taxes in the state.

11. Annual and Ongoing Requirements

Every form of business in Florida has certain state based requirements that they are required to fulfill. Once you register a business in Florida, you have to ensure complete compliance with state laws and regulations and this can be achieved by ensuring all annual and ongoing requirements are fulfilled. These requirements can be business and business activity specific. Let’s look at the annual and ongoing requirements to incorporate in Florida.

  • Annual Report – If you register a business in Florida then one of the primary annual compliance requirements is filing of the annual report. The annual report is a document that helps in updating or confirming the status of a business in the records of the Florida Department of State, Division of Corporations. The annual report is filed by the following entities:

    • Profit Corporation
    • Non-Profit Corporation
    • Limited Liability Company
    • Limited Partnership
    • Limited Liability Limited Partnership

    The annual report fee varies according to the type of business. For example, the fee for a profit corporation is $150 while that of an LLC is $138.75. The first annual report has to be filed between January 1 and May 1 in the year following the year when the business was formed.

    For example, if you incorporate in Florida online on Oct 05, 2021 then the annual report has to be filed by May 01, 2022 pursuant to FL Stat § 607.1622 (2014). There is a late fee of $400 if you fail to file by the due date.

  • Franchise Taxes – Certain businesses in Florida have to file taxes annually. Your company may be subjected to a state income tax of 5.5% or an alternative minimum tax of 3.3%.
  • DBA – This is known as a “Doing Business As” name or a fictitious business name that is valid for a period of 5 years unless you change your company name. Once the 5-year validity expires, you will need to renew it.
  • Business Licenses and Permits – Depending on the type of Florida business license and duration of the permits, you will have to renew them on the due dates as specified by the issuing authority.

Some Important Quick Resources for Florida Businesses

Once you come up with an idea, the next step is to identify how you can form a startup and finally register a business in Florida. You will need to conduct research and find information on every possible aspect related to your new business. Where do you find the right resources and authentic business related information? We have created a list of such resources that are focused on helping startups, entrepreneurs, and new businesses.

Florida Department of State

The Florida Department of State also known as the Florida Secretary of State is one of the primary agencies that you need to look for information and resources from while planning to incorporate in Florida. The office manages several aspects of the state including elections, businesses, arts and culture, and library and information services. This department provides information on how you can start a business in Florida, business structures in the state, registration of DBA or fictitious names, and managing or changing existing businesses.

The contact information for Florida Department of State is:

Florida Department of Financial Services

The Florida Department of Financial Services (FLDFS) is a state agency that consists of 13 divisions that provides information of varying degrees from Accounting and Auditing to Workers’ Compensation, Risk Management, Rehabilitation and Liquidation, Insurance Agent and Agency Services, and Consumer Services among others. The headquarters are situated in Tallahassee.

The contact information for Florida Department of Financial Services is:

State of Florida Business & Professional Regulation

The State of Florida Business & Professional Regulation is a state department and regulatory body that provides information on all regulated industries & professions in Florida. You can find important information regarding requirements to incorporate in Florida including License Search, Construction Industry Licensing, Florida Real Estate Regulations, Florida Permits Guide and a guide focusing on how you can start a business in Florida.

The contact information for the State of Florida Business & Professional Regulation is:

Department of Business and Professional Regulation

The Department of Business and Professional Regulation (DBPR) is a state agency that provides detailed information and guidance on Florida business license, business licensing and permits requirements. You can also benefit from information pertaining to requirements and processes involved in applying for a permit or license before or after you register a business in Florida. You can also check the status of an existing application or even access the online DBPR application system and check the fee of license or permits required by your business or profession.

The contact information for the Department of Business and Professional Regulation is:

  • Department of Business and Professional Regulation
    2601 Blair Stone Road,
    Tallahassee FL 32399-1027
    Phone: 850.487.1395
    Website – https://www.myfloridalicense.com/

Division of Workers’ Compensation

The Division of Workers’ Compensation is a state department under Florida’s Chief Financial Officer. The agency provides necessary tools and resources for businesses to understand and participate in the Florida workers’ compensation system. One of the responsibilities of this division is to ensure proper adjustment and reimbursement of claims. They also provide information pertaining to various aspects of workers’ compensation law like exemption, reimbursement, and compensation insurance among others.

The contact information for the Division of Workers’ Compensation is:

Florida Chamber of Commerce

The Florida Chamber of Commerce is a state department that is devoted to advocacy of startups and private businesses in the state. If you start a business in Florida then the chamber of commerce is one place where you can find information and guidance pertaining to taxation, right-to-work laws, transportation, tort reform, economic development, growth management, and international trade. They also host several events including the Florida Chamber Annual Meeting as well as Future of Florida Forum. They also host a number of training courses and depending on the business activity and industry, you can even participate in such training programs before or after you incorporate in Florida online.

The contact information for Florida Chamber of Commerce is:

Florida Department of Environmental Protection

The Florida Department of Environmental Protection (FDEP) is a government agency that is responsible for environmental protection. When you register a business in Florida there are certain environmental norms and laws that your business needs to be compliant with especially if you are in the manufacturing industry or are producing industrial waste. As a new business, you can find important information regarding regulatory programs that are responsible for safeguarding natural resources by overseeing compliance and permitting activities, which protect water and air quality as well as management of waste cleanups. The department is responsible for reviewing permit applications submitted by businesses that incorporate in Florida, conduct site inspections of permitted business and industrial facilities, and conduct enforcement activity.

The contact information for Florida Department of Environmental Protection is:

Ready to start a business in Florida?

Florida is one of the most favored destinations for entrepreneurs and small business owners as the state provides a pro-business environment, strong infrastructure and a variety of business incentive programs. You can start a business in Florida as a Limited Liability Company, Corporation, or any other form of business. If you are wondering how you can ensure the proper formation of your new business, then IncParadise can provide you with the right guidance and support.

We are an expert registered agent and incorporation service provider in Florida. We have already helped thousands of businesses in Florida to start their LLC or INC. As your Florida registered agent, we will not only help you understand all new business requirements but also provide a plethora of additional services like EIN assistance, and foreign qualification among others.

IncParadise can assist you with new business formation in Florida!

Notarization Service in Las Vegas

Date: 10/04/2021 | Category: | Author: developers

Notarization service in Las Vegas, Nevada

Notarization in Nevada and everywhere else is so important that every day, innumerable transactions take place that need a notary public available for the transaction to take place. If you too are searching for a good notary service in Nevada, then IncParadise is here to help you. Just come by our Las Vegas office to get your job done today!

What Do You Need to Know About Notarization?

Notarization in Nevada is also known as “notarial acts“. There are three parts that need to be taken care of by the notary public: vetting, certifying, and record-keeping. To put it in simple words, this is a process that officials use to prevent any fraud cases and to assure that the parties involved in the transaction that the document being signed is legitimate.

What is Notarization?

Notarization is an official fraud-deterrent process, which assures the parties involved in a transaction that the document is authentic. This allows them to trust the document and process worry-free. As mentioned above, there are three parts to the process. The process to notarize documents in Nevada is handled by a person called the notary public. Its three-part process includes:

  • Vetting
  • Certifying
  • Record-keeping

In short, the notary service in Nevada is all about assuring the parties that the document is authentic. It also states that the signers were not intimidated into signing the documents, and the person will follow the terms of the document. This assurance is made by a duly appointed and impartial notary public.

What does it mean to have a document notarized?

Simply put, notarized documents are documents that have been certified by a notary public, which verifies the document’s authenticity. To get a document notarized means to get it authenticated. All important documents are notarized. The main value of the notarization in Las Vegas lies in the Notary’s impartial screening of the signer’s identity, awareness, and willingness. And this is the thing that detects and deters document fraud. It helps protect the citizens’ rights and assets from any forgers, exploiters, and identity thieves.

Every day, thousands of documents are notarized. And this helps prevent countless coerced, forged, and incompetent signings that would have otherwise overwhelmed our system. Thanks to the service online notarization in Nevada, the process has been going smoothly even during the pandemic. This is what keeps the network of trust, which allows civil society to function smoothly.

Why is Notarization important?

The notary service in Las Vegas and everywhere else is essential to verify that the person signing the document is real and not intimidated into signing the document. Its sole purpose is to prevent any kind of fraud or identity theft. The notarization letter given by the notary public helps protect the rights of the citizens who otherwise can be exploited. It also helps in avoiding a lot of proceedings. This saves the time of both the person and the court.

Notary Public

To notarize documents in Nevada, you need a notary public. This person vets for the document’s authenticity and verifies the identity of the people signing the document. Appointed by the state, a notary has to be a person who lives within the state in which they are authenticating the documents.

What is a Notary Public?

A notary public is an official who the state government has appointed to serve the public as an impartial witness to the signing of important documents to avoid any fraudulent acts. These official acts are also known as notarial acts or notarization. Notaries are the public officials who have to follow the written rules without the exercise of significant personal discretion.

What does Notary do?

The notary’s duty is simple – screen the signers to verify their true identity, their awareness of the contents of the document or transaction, and their willingness to sign without intimidation or coercion. Some of the notaries have to put the signer under oath as per some notarizations. It is the oath declaring that the information in the document is correct and true under the penalty of perjury.

The foundation of the notary public trust is impartiality. This means that the notary is duty-bound not to act in situations where they have a personal interest. That is when the public can trust that the screening done by the notary is not corrupted by self-interest. Along with this, impartiality means that the notary can never refuse to serve a person due to sexual orientation, state as a non-customer, politics, religion, nationality, or race.

Being an official representative of the state, the notary public certifies the proper execution of several life-changing documents of the citizens. These documents can be about real estate, establishing a prenuptial agreement, granting powers of attorney, etc. Anything that needs a legal hand in it, a notary has to notarize.

Notarization in Nevada

Regardless of if it is a will, power of attorney, mortgage signing or any important document, notarization in Nevada is something everyone depends on to ensure that the agreements are legally sound. This certifying process that is done officially, offers the participants with assurance that the terms of the document are genuine, authentic, and mutually agreed upon.

What does a Nevada Notary do?

When notarization in Nevada takes place, all the parties come before a notary public to acknowledge the terms of the document, have their identities verified, and confirm that they voluntarily agree to the terms in the document. As soon as this is done, the notary will complete the process by adding a stamp and signature to authenticate the process. This completes the process, and the document becomes genuine for the court of law.

There are three kinds of notarial acts, including:

  • Acknowledgments – These are the documents that deal with controlling or conveying ownership of assets. They include property deeds, DMV documents, power of attorney, trust, and wills. In Nevada, the Delivery Outside of California is also notarized to save the buyer from paying California taxes on the sale of a vehicle if it is delivered in another state.
  • Copy Certificates – This is to authenticate the copy of an original document and assure that it is an exact and true copy of the original. The documents include college degrees, passports, and so on. Note that you cannot get a certified copy of your divorce decree, marriage certificate, death certificate, or birth certificate in Nevada. These documents can be obtained from the county they were recorded in originally, and the notary can notarize the documents to request a copy from the county.
  • Jurats – A Jurat is done with the evidentiary documents that are used in the civil and criminal justice system. As per this process, the signer has to be there in person for the notarization, sign the document and then recite the oath stating that the statements in the document are true. In case the person who takes the oath is not truthful, they will be subjected to prosecution for perjury.

What does a Nevada Notary can’t do?

It is vital to know the things that the notary can do and cannot do while they offer the notary service in Nevada so that you stay protected. These things include:

  • Issuing ID cards
  • Notarizing a document without the signer present (even though some states are permitting virtual signing, Nevada has not yet permitted it.)
  • Performing acts related to the practice of law
  • Offering advice, or drafting, selecting, and preparing the document for the transaction
  • Certifying copies of documents that are recordable in public records
  • Signing a notarial certificate in a name other than their own
  • Overcharging for the notarization in Nevada. The state has a maximum amount that can be charged by the notary public.

How do I notarize a document in Nevada?

When you are about to get a document made that will be used as proof somewhere or legally somewhere, then you will need to contact a notary public to be situated during the document signing. These are some points that you need to take care of for such transactions:

  • Find out if you will need a witness during the signing. To know about this, call your notary before time in case you are not sure.
  • Get a valid and unexpired government-issued photo ID that will have all your details including the birth date, name, ID number, and issuing authority. Some examples of legitimate IDs include state IR cards, passports, driver’s license, or military ID. Tell the other party to get their IDs too.
  • Do not sign any document before the notary comes in. The documents have to be signed in front of the notary public else it cannot be notarized.
  • Incomplete or false documents will not be notarized.
  • Ensure that the other party is okay with the deal so as to not create an issue else the document will not be notarized.

Kindly note that a notary can refuse to validate a signature if they feel there are potential problems with the signer. On the other hand, when they find it authentic, they notarize the document by completing the notarial wording after signing and stamping the document to notarize it.

Looking for the notary service in Nevada? IncParadise can help you!

Types of documents require notarization

Many kinds of documents are there that need notarization. These include:

  • Wills, trusts, and estate documents
  • Verification forms
  • Certifications
  • Business documents
  • Acknowledgments
  • Affidavits
  • DMV documents
  • Jurats
  • Gaming applications
  • Employment waivers
  • Construction documents/permits
  • Custody agreements
  • Adoption papers
  • Advance healthcare directives
  • Certified copies
  • Statements
  • Vehicle title transfers
  • Petition to establish custody & visitation
  • Minor passport applications
  • Letters of instruction
  • Travel affidavits
  • Thrift savings/proof of life documents
  • Stipulation for judgment
  • Resident witness
  • Request for birth certificate
  • Nursing home and hospital forms
  • Mortgage signing
  • Mining claims
  • Medical documents / directives
  • Loan document signings

And a lot more. There are many additional documents that the notary has to authorize to complete them. There are forms like the I-9 forms, and so on. It is always a better idea to contact the notary service in Nevada ahead of time to find out if your document needs to be notarized.

What should you look for when you choose a notary service in Nevada?

Even though all the notary publics take their responsibility very seriously, there can be mistakes. These mistakes can then result in legal issues for all the parties involved in the transaction or signing. The dark side to this also exists: some practitioners abuse their power to scam consumers and offer notary service in Las Vegas after their appointments have been expelled, revoked, or suspended.

So, the best way to protect yourself is to check all the credentials of the notary public you are getting involved with. To begin with, the notary has to be certified by the State of Nevada. You will be able to see their notary certificate at their office or upon request. Also, it is a good idea to look for notaries that are a part of the National Notary Association. This gives you the added benefit of being sure that the notary is up to date with all the standards, laws, and rules to minimize any risks.

Another tip is to get a notary service in Nevada that is close to you so that you do not have to travel far, especially during this pandemic. As soon as you have looked for the notary service in Las Vegas, give them a call. They should be easily accessible by phone. And if you have any questions, they should happily be able to answer them. If you do not get the right service or answers, then it is time to look for a different notary service.

Additionally, it is a great idea to know all about the rules in your state. For example, online notarization in Nevada is not permitted in Nevada since they do not meet the state’s law of personal appearance. This means that if you find anyone who says they can offer you the online notarization service, you know they are not genuine. The individuals need to be present in person along with the notary public for the document signing.

IncParadise helps to notarize your document in our Las Vegas office

Need help in getting some documents notarized? IncParadise is here to help you with the notary service in Nevada. All you need to do is contact us – IncParadise to fix up an appointment time and date. Choose a day that suits you best as you will need to come and visit our Las Vegas office for the process. On the day of the signing, the clients have to bring in their documents to the Las Vegas office at the scheduled time and appear in front of the notary public.

Before the signing can take place, the client needs to provide a valid ID and pay the fees. Once everything is verified, the documents are signed and notarized with the stamp. The pricing for this is – $5 per first Signature/Page and $2.50 per Additional Signature/Pages.

Get Your Document Notarized in Nevada – Book Your Appointment Now!

Why Texas Is a Good State for Starting a Business

Date: 10/06/2021 | Category: | Author: developers

Why Is Texas a Good State for Starting a Business?

Entrepreneurs prefer starting a business in Texas as the state offers several advantages and state incentive programs for startups. If you want to know why you should choose Texas for business, then the answer lies in the highly charged, vibrant, and positive business climate. This is a guide for entrepreneurs and small business owners who want to start a new business in Texas. The article provides information pertaining to various advantages and benefits of choosing Texas as their incorporation or new business formation state.

Starting Business in Texas

There are several reasons for starting a business in Texas with one of the primary reasons being a balanced and robust economy. Reports by Forbes and Statista have revealed that the real Gross Domestic Product (GDP) of Texas in 2020 was $1.7 trillion. As a result, it has become the 9th largest economy in the world based on GDP. One of the salient reasons for choosing Texas for business is the fact that the state gives priority to small businesses and the state believes that they play a crucial role in defining the mission of the state as well as maintaining a dynamic, fair, business-friendly, and flourishing business climate and economy.

Why Choose Texas for Starting a business?

Texas is home to some of the top Fortune 500 companies in the world including Exxon Mobil, Texas Instruments, AT&T, Occidental Petroleum, Tenet Healthcare, American Airlines Group, ConocoPhillips, Baker Hughes, Hewlett Packard Enterprise, and Oracle among others. A pro-business climate along with good weather and access to venture capital is attracting entrepreneurs to establish their startups here. Starting a business in Texas seems to be en vogue and cities like Austin are gradually becoming mega tech hubs. This is more so due to the numerous benefits of a Texas business environment and abundance of skilled workforce.

Texas is considered as one of the fastest growing and healthiest economies in the nation and small businesses are the backbone, which ensures this economy stays strong. One of the top benefits of a Texas business is that they can leverage the diverse and extensive workforce of approximately 14 million workers. Let’s take a look at some of the statistical facts that makes the state one of the best for starting a new business:

  • Texas contributes 8 percent to the US GDP, which ranks it #2 right on the heels of California
  • One of the major benefits of Texas business is the availability of financing options for small businesses
  • The state of Texas is responsible for producing approximately 10% of total manufactured goods in the country. Some of the top companies in this sector include Excalibar Minerals, LLC, Titan Manufacturing, Inc., Brandon Industries, Inc., and Aviva Metals, Inc., among others.
  • An advantage of starting a business in Texas is that the state boasts of a robust Texas freight and logistics infrastructure and market, which provides businesses with value added services in freight transport, freight forwarding, courier express, warehousing, cold chain logistics, return logistics, and last-mile logistics among others.
  • The state has a strong exports market that witnessed annual revenues of $315.9 billion while value of manufactured products exported was $248.1 billion
  • Texas has the second-largest workforce in the nation with the workforce distribution being the highest in North Texas followed by Gulf Coast Texas and South Texas.
  • The state has an extensive network of educational institutions, which play a key role in driving workforce supply as well as innovation in Texas.
  • It has been ranked as the #1 producer of oil and natural gas in the country

Top Benefits of Starting a Business in Texas

Texas has been awarded top spot in 2021 by the Global Groundwork Index of the Site Selection Magazine for measurement of the state’s success in business infrastructure and end-user project investment. The state’s economic development policies and flexible business regulations are helping companies of different sizes to grow and expand in Texas. Entrepreneurs starting a business in Texas can enjoy several advantages right from business incentives to tax benefits and a diverse market to launch products or services. Let us take a look at some of the top benefits of a Texas business.

Tax benefits for Texas businesses

One of the advantages of starting a business in Texas is the different types of tax benefits available at the state and local level. These benefits are crucial towards driving the Texas tax climate although the fact that the state does not have any corporate or personal income tax makes it one of the few states having a low tax burden. The tax benefits of a Texas business are categorized under tax incentives or exemptions.

The state of Texas provides a variety of tax exemption programs for small and medium sized enterprises. The sales tax exemption is a big advantage of starting a business in Texas and it is especially beneficial to those in the manufacturing industry. The sales tax exemption is primarily available on manufacturing equipment and machinery as well as on software and materials for R&D (Research and Development).

Entrepreneurs and businesses can also leverage from the franchise tax exemption accessible to sellers, manufacturers, and installers of solar energy equipment or devices. Some of the other tax benefits of a Texas business include property tax abatements, Freeport exemption, personal property exemption, Research & Development tax credit, and State Sales & Use Tax Exemptions among others.

Large and diverse market

Texas boasts of a diverse, consistently growing, and constantly innovating market for new and existing businesses. Austin and Houston are fast becoming tech hubs due to availability of an educated workforce. Some of the biggest companies in the IT industry like Google, Amazon, Apple, and Facebook have made more than $1 billion in investments in the Northwestern region of Austin. An advantage of starting a business in Texas is that you can operate and achieve growth in a diverse industrial landscape, which is already home to 49 Fortune 500 companies and headquarters of more than 90 Fortune 1000 companies. The reason why Texas for business is good is the rapid growth of industries like advanced manufacturing, information technology, life sciences, energy, aerospace, aviation and defense, petroleum refining & chemical products, and biotechnology among others.

Business friendliness and supportive environment

Starting a business in Texas is a great decision because it boasts of a business friendly environment that helps in nurturing and growth of a business. There is no dearth of business support and resources in the state with government, private, and other local agencies providing the much needed financial assistance to startups. Some of the important components of the Texas business supportive environment include:

  • A highly skilled workforce
  • Central location of the state creating accessibility to domestic and foreign markets
  • State-of-the-art infrastructure
  • Extensive transportation network
  • Low cost of living
  • No corporate or personal income tax
  • A transparent regulatory structure
  • Platform for technology and innovation

One of the top benefits of a Texas business is access to startup guides, resources, and business incentive programs offered by several government agencies like the Texas Economic Development Division.

Raising capital for startups

The state of Texas is famous for its strong entrepreneurial spirit, which has been inspiring a whole generation of visionary entrepreneurs and innovative thinkers. There is a distinct advantage of starting a business in Texas as a wide variety of resources are available for startup businesses and entrepreneurs including co-working spaces, accelerators, and incubators among others. These resources are important for business growth but the one thing entrepreneurs or startup businesses require in the initial stages in raising capital and this is where venture capital (VC) funding comes into the picture.

If you have been thinking aloud “why Texas for business” then it is time to look at some facts. Apart from venture capital, various cities of Texas like Austin and Dallas have witnessed a rise in seed capital for startups. In fact, Austin is becoming popular as the “king of seed capital” as it received $1.3 billion in seed funding in 2020 while Dallas received $6.5 billion.

Are you ready to form your startup in Texas?

Open for innovation

Texas is one of the most promising innovation and technology markets in the nation with Austin, Houston, Dallas, and San Antonio topping the list for being centers of innovation. The lone star state is home to world-class innovation hubs as an eclectic mix of entrepreneurs, corporations, accelerators, investors, and universities come together to create an insatiable appetite for technology and innovation. Thanks to the innovation hubs, starting a business in Texas can be a highly rewarding experience. Some of the salient aspects of this innovation state are:

  • There are several active innovation communities in the smaller cities and counties that work as a support system for their bigger cousins
  • The innovation ecosystem in Texas is highly efficient and effective
  • There is higher media attention for Texas startups focusing on innovation
  • One of the benefits of a Texas business is that the innovation ecosystem takes startups from the concept stage to the seed stage and growth stage

Ownership transfer

An advantage of starting a business in Texas is the ease of transfer of business ownership. There are different methods through which transfer of business ownership is possible and the method you choose will depend on your business structure and need of your business. Ownership of your business can be transferred in Texas through the following ways:

  • You can sell the business through owner financing or lender financing
  • You can lease the business
  • Reapportion of ownership amongst several owners
  • Transfer of ownership using bequests, shares or gifts applicable mostly for a business corporation

Incentive and funding programs from government

One of the biggest advantages of starting a business in Texas is the incentive programs made available by the state. The incentive programs can be classified as:

Ready to Start a Business in Texas?

Texas, the rapidly growing hub of entrepreneurship and innovation is considered as one of the best states to establish your startup. The state has everything from a pro-business climate to flexible regulations, growth driven business environment, technology platform, and robust infrastructure among others. If you plan on starting a business in Texas then IncParadise can assist you with the entire process of new business formation.

IncParadise is one of the leading business incorporation service providers in Texas. We have a team of professionals who can answer your incorporation or new business queries and also assist you in fulfilling state requirements for a new business. We also offer some additional services like Registered Agent services and EIN assistance among others.

Register your startup in Texas Today!

Texas LLC and INC Annual Filing Requirements

Date: | Category: | Author: developers

Texas LLC and INC Annual Filing Requirements

Once you have incorporated a business or formed an LLC, you will need to prepare yourself for all ongoing and annual compliance requirements in the state of formation. If your business is based in Texas then your business has to meet Texas LLC annual requirements or Corporation annual requirements depending on the chosen business type. A business is required to maintain external as well as internal business compliance. This article has been created to provide you with information and guidance on annual filing requirements of an LLC and corporation including Franchise Tax Public Information Reports, Texas corporation annual report, and penalties on failure to file these reports.

Texas LLC Annual Filing Requirements

You can form a limited liability company in Texas as such a form of business has several advantages like flexibility of tax treatments, privacy protection, and limited liability for members among others. Once you have registered your startup, the active status of the company will depend on how compliant you are with the Texas LLC annual requirements. Different states in the US have different sets of annual requirements although filing of an annual report also known as Texas LLC public information report is quite common amongst most states. Let’s take a look at what this report is and how to file it.

Franchise Tax Public Information Report

One of the important annual requirements for LLC and corporations in most states including Texas is the annual report. In Texas, it is known as the Public Information Report (PIR) and the Ownership Information Report (OIR). The PIR is also known as the Texas Franchise Tax Public Information Report and is separate from all other types of Texas franchise tax return forms or reports and is one of the foremost Texas LLC annual requirements.

What does it include and how to file?

The Texas LLC Public Information Report provides basic information regarding the entity including the name and mailing address of the entity and each member. If your LLC business doesn’t owe any franchise tax, even then you will be required to file a PIR as it is one of the mandatory Texas LLC annual requirements. This report is filed with the office of the Texas Comptroller of Public Accounts (CPA). You can mail it or submit it online using the Webfile esystems. In order to file online, you would be required to create an account or profile first.

When submitting the Texas LLC Public Information Report you need to ensure all the required information has been provided. Some of the things you need to check include:

  • Selecting the correct report year is important. Since a PIR report is classified under Texas LLC annual requirements, you need to create the report for the current year.
  • You need to provide the “Industry Classification Code” for your limited liability company. This comprises the Standard Industrial Classification (SIC) code and the North American Industry Classification System (NAICS) code. These codes will help the office of the Texas Comptroller to identify the primary industry your LLC is transacting business in.
  • You will be required to provide information regarding LLC members, owners, and managers if applicable.
  • You will need to provide information on principal place of business and principal office of the said LLC
  • If a limited liability company owns any other Texas business then the Texas LLC Public Information Report will contain SOS file number of such entities
  • You will also need to provide contact information of Texas LLC registered agent

It is important to note that as a part of the Texas LLC annual requirements, the Public Information Report (PIR) has to be submitted along with the Texas franchise tax report.

What is the due date for filing?

The filing of the Texas LLC Public Information Report is governed by Texas Tax Code – TAX § 171.203. As a part of Texas LLC annual requirements, the PIR or annual report has to be filed annually by May 15 in the year following the year your LLC was registered. For example: If you registered or formed your LLC on Aug 25, 2021 then the Public Information Report will be due on May 15, 2022.

Penalties if fail to file

It is important to file the Public Information Report along with the Texas franchise tax report. If you fail to file this report then the office of the Texas Comptroller of Public Accounts (CPA) may send a 45 days “notice of forfeiture”. If you fail to file the report along with penalties within the stipulated period then the comptroller can forfeit certain LLC privileges pursuant to Texas Tax Code – TAX § 171.251.

Texas INC Annual Filing Requirements

A business corporation is quite a popular form of business for entrepreneurs due to the many advantages it has like business security, personal liability protection, access to capital through investors and VCs, and continuity. Once you have incorporated your startup, it is important to identify your Texas Corporation annual requirements as failure to maintain them can lead to penalties for the company. One of the most important annual requirements is the Texas corporation annual report also known as the Public Information Report (PIR). Let’s take a look at the requirements of the Public Information Report and how to file it.

Texas Franchise Tax Public Information Report

When you form a corporation in Texas, there are several annual compliances that your company has to meet in order to enjoy active status. One of the foremost annual compliances is that of filing a Texas corporation annual report also known as the Franchise Tax Public Information Report (PIR) pursuant to Texas Tax Code Chapter 171 – § 171.203. Although a corporation or professional corporation in Texas needs to file the Public Information Report (PIR), other forms of businesses may be required to file the Ownership Information Report (OIR) and this depends on the type of business that is filing a franchise tax report.

What does it include and how to file?

The Texas corporation annual report or the Public Information Report (PIR) consists of basic information regarding a corporation. Some of the information that is provided through the report includes the name and mailing address of the entity as well as the owner, director, and managers. If a corporation reports total annual revenue generated to be less than $1,180,000 then they will be considered to be in the “No Tax Due Threshold” or No Franchise Tax Due bracket. In such a scenario, you will still be required to file the PIR as a part of your Texas Corporation annual requirements.

This Texas corporation annual report is filed with the office of the Texas Comptroller of Public Accounts (CPA). You can mail it or submit it online using the Webfile esystems. You would be required to create a profile in order to submit the report online.

As a part of the Texas Corporation annual requirements, your Public Information Report should contain the following information:

  • It is important to select the correct Texas corporation annual report year. Unlike, a franchise tax report, which is based on the financial year; the annual report has to be submitted each year.
  • You will have to provide personal information including mailing address of directors, managers, or owners of the corporation if applicable.
  • You will be required to provide “Industry Classification Code” for your corporation in order to meet the Texas corporation annual report requirements. The codes will help the office of the Texas Comptroller to identify the primary industry your business is operating in.
  • You will have to provide information regarding the principal place of business and principal office of the said corporation
  • You will also need to provide contact information of Texas LLC registered agent

One of the important aspects of the Texas Corporation annual requirements is that the Public Information Report (PIR) has to be submitted along with the Texas franchise tax report.

What is the due date for filing?

The filing of the Texas corporation annual report for a business corporation is governed by Texas Tax Code – TAX § 171.203. The Public Information Report has to be filed annually by May 15 in the year following the year your business was incorporated. For example: If you incorporated your startup on June 10, 2021 then as a part of the Texas Corporation annual requirements, the Public Information Report will be due on May 15, 2022.

Penalties if fail to file

The Texas corporation annual report is not the only document to be filed by a business corporation as it has to be submitted along with the franchise tax report. According to the Texas Tax Code – TAX § 171.251, failure to file the public information report along with the franchise tax report can lead to penalties and the comptroller may even decide to forfeit certain privileges of the corporation including the privilege to operate in the state.

Texas Franchise Tax

The Texas franchise tax is a type of privilege tax that is imposed on specific business entities that are formed and operate in Texas. It is simply a tax for doing business in Texas. This type of tax is applicable to corporations, limited liability companies, and partnerships and hence such entities will be required to submit a Texas franchise tax report. This privilege tax is an integral component of the Texas LLC annual requirements or corporation annual compliances and is governed by the 2005 Texas Tax Code, Chapter 171- Franchise Tax.

What is Texas Franchise tax?

Texas is one of the few states that don’t have any corporate income tax but it does have franchise tax. It is a type of tax that a state levies against any business simply operating in the said state and hence it is a state tax and not a federal tax. The tax is levied as a part of Texas Corporation annual requirements or annual compliances for most types of businesses. However, certain corporations in Texas like those engaged primarily in selling, manufacturing, or installation of solar energy devices or equipment are exempt from filing a Texas franchise tax report.

The franchise tax rates are different for different states and in Texas, it is calculated based on the taxable entity’s “margin”, which comprises of the following components:

  • Total revenue
  • Cost of goods sold
  • Compensation and benefits

The franchise tax Texas LLC annual requirements or those of other entities are also based on the annual earnings. If the revenues generated are lower than $1,180,000 then such businesses don’t owe any tax and this figure is also known as the “No Tax Due Threshold”. The franchise tax rate for retail or wholesale is 0.375% while that of other businesses is 0.75%. It is important to note that even if a business doesn’t owe any franchise taxes, even then a Texas franchise tax report also known as the “No Tax Due Reports”, has to be filed as a part of the annual requirements.

Texas Franchise Tax Report due dates

Since there are no “minimum tax requirements” under the provisions of the franchise tax rules; you will be required to file a Texas franchise tax report on the revenue earned under the rates or slabs mentioned by the Texas Comptroller of Public Accounts (CPA).

As a part of the Texas Corporation annual requirements or LLC requirements, the franchise tax report has to be filed by May 15 each year and if such a date falls on the weekend or is a holiday then the due date will be shifted to the next business day. One of the important things to remember is that failure to file the Texas franchise tax report can lead to a $50 penalty on each report that is being filed past the due date. There is a 5%-10% penalty if the filing of the reports is delayed 30 days or more.

How to file?

You can submit the Texas franchise tax report at the office of the Texas Comptroller at:

  • Texas Comptroller of Public Accounts
    P.O. Box 149348
    Austin, TX 78714-9348

You can also file it online using Webfile.

Need any Assistance in Filing Texas LLC or INC Annual Reports?

There are different types of Texas LLC annual requirements or corporation annual compliances but the most important filing is that of the Public Information Report and the Texas franchise tax report. If you are planning to incorporate or form a new business in the state then IncParadise can help you with your Texas LLC or INC annual filing requirements.

We have a team of experienced professionals to assist you with different annual filing requirements. IncParadise also offers additional services for Texas businesses including obtaining an EIN essential for tax filings.

Do you want assistance with your Annual Filing Requirements?

Texas Business Name Search

Date: | Category: | Author: developers

Texas Business Name Search

If you have a business idea and want to establish a startup in Texas then you need to start by zeroing in on a name for your company. A business name is an extremely valuable asset as it enables the creation of the brand and the entire product development, marketing strategy, and sales objective are backed by the name itself. Hence, this guide has been created specifically to answer certain aspects of business name availability and Texas business name search along with state defined Texas business name rules pertaining to names for corporations and limited liability companies.

Texas Business Entity Search

A business name is an identifier of a business just like the name of an individual is his/her identity. When you appoint a name for a startup or small business, you are basically creating an identity that every probable customer can associate with. The name of a company can also present a negative or positive image of the business and can also help in communicating your business branding and marketing strategy. Hence, it is quite important to conduct a Texas business name search. This search helps you to identify if your chosen name is not in existence or is not registered by another business in the database of the secretary of the state. In short, it helps you with Texas business name availability. The search is made possible through the “Texas Business Entity Search” option using state portals like SOS and Texas Comptroller of Public Accounts (CPA).

What is Texas business name search?

Whether you are planning to form a limited liability company or a business corporation in Texas; one of the first steps is to identify and reserve a business name. You will need to conduct a Texas business name search in order to identify whether your chosen business name is available or not. As a new business owner you may be thinking about what a Texas business entity search really is. It is basically a process by which you can find out information pertaining to the availability of a name within the state database. Let’s look at an example to understand this:

Example: If you are thinking of starting a travel startup called “Travel Hikes Inc.” then you need to first make sure the same name is not being used by any other business or your chosen name has not been reserved by any other company. This information is readily available in the state database and you will need to conduct Texas business name availability search at the Texas Comptroller of Public Accounts (CPA) portal. Alternatively, you can also directly call the office of the secretary of state for preliminary determination regarding business name availability. Now if the name has already been taken then you will need to go back to the drawing board and come up with a new name. If your chosen business name is available then you will be able to reserve it with Texas SOS.

Naming your Texas LLC

A limited liability company is one of the most common forms of business in the US and Texas. There are several benefits that an LLC provides its owners or members including tax advantages and hence is an attractive entity type for first time entrepreneurs. In order to register your LLC properly, there are a few aspects you need to consider with the most important being naming of the Texas LLC. You have to identify a business name and conduct Texas LLC name search to identify and reserve the chosen name. You have to also ensure that the chosen name is in accordance with the Texas business name rules.

General LLC naming rules

The naming of a Texas LLC is fundamental towards the formation or registration of the new business in the state. When you decide to choose a name for your new LLC, it is essential to follow Texas business name rules so that the new name is accepted by the office of the Secretary of State. The Texas LLC naming and reservation is governed by Sections 5.101 to 5.106 of the Texas Business Organizations Code(BOC). The naming rules to follow are:

  • Distinguishable Names – Your business name should always be unique. In other words, the name under which a limited-liability company plans to transact business in Texas should be distinguishable in the database of the secretary of state pursuant to Business Organizations Code, Title 1 – general provisions, Chapter 5 – names of entities, registered agents and registered offices, Subchapter A, general provisions, Sec. 5.053. You can check for uniqueness by conducting a Texas LLC name search.
  • Name and Abbreviations – An important aspect of Texas business name rules is that the name of a Texas limited liability company and a foreign LLC should include “Limited Liability Company” or “limited company” in the name. An abbreviation of these phrases like “LLC,” “LC,” “Limited”, or “Ltd.” can also be used pursuant to Sec. 5.056 of the Business Organizations Code, Title 1, Chapter 5.
  • False Implication – Prior to conducting a Texas LLC name search it is important to ensure that the name doesn’t falsely imply affiliation to any government agency as governed by 1 TX Admin Code § 79.33.

Search LLC business name availability in the Texas Comptroller’s website

Once you have chosen a name in accordance with the Texas Administrative Code and the Texas Business Organizations Code (BOC), you need to conduct a Texas LLC name search. The Texas business name availability can be checked on the Texas Comptroller’s website under the Taxable Entity Search option. This will help you to check if your chosen business name is available or already in use by another entity. If the name is not available then you will have to go through the name creation process again and then conduct name search again. If your chosen name is available then you can proceed with reserving the name.

If you are wondering how you can form a Texas LLC then IncParadise can assist you with the process. We are one of the top registered agents in Texas with experience in helping several entrepreneurs start their new business.

Naming your Texas Corporation

A business corporation is one of the most popular forms of business in Texas and this is due to the several benefits or advantages it has over other forms of business. Limited liability, ease of ownership transfers, and perpetual life are some of the top benefits. Over and above all, business corporations attract investors and venture capitalists (VCs). If you are thinking of incorporating your startup in Texas then there are some aspects to consider like choosing a business name. In order to choose a name, you will be required to conduct a Texas Corporation name search to check availability of the chosen name. It is important to note that there are certain Texas business name rules that you have to consider while naming your startup.

General Corporation naming rules

The naming of a Texas corporation is one of the foremost requirements towards the incorporation of your startup. There is a process for choosing an entity name and the process includes the ideation phase, finalizing a name, conducting a Texas Corporation name search, and reserving or registering the name. When you are in the ideation phase or “finalizing a name” phase, following Texas business name rules is crucial towards acceptance of the name in the office of the Secretary of State (SOS). The naming of your corporation is governed by the Texas Business Organizations Code (BOC) and the Texas Administrative Code. The naming rules for a corporation are as follows:

  • Names should be distinguishable – The principal requirement according to Texas business name rules is that your chosen name should be clearly distinguishable from any other name in the database or records maintained by the Secretary of State. In other words, your chosen name cannot be the same or similar to a name being used by any other business registered in the state. The name has to be unique. A Texas Corporation name search can help you to determine if your name is unique or not.
  • Abbreviations – One of the important Texas business name rules is the use of words or abbreviations in the name of a business entity. The name of a Texas corporation, Professional Corporation, and foreign corporation must contain the words “incorporated”, “corporation”, “company”, or “limited”. You can also use abbreviations like “Inc.”, “Corp.” “P.C.”, or “Ltd.” pursuant to Sec. 5.054 of the Business Organizations Code, Title 1, Chapter 5.
  • False Implication – One of the salient aspects to remember prior to conducting a Texas Corporation name search is that the chosen name should not falsely imply any affiliation to a government agency.

Search Texas Corporation name availability in the Texas Comptroller’s website

The process of identifying the correct business name is crucial towards ensuring proper reservation of the business name. A Texas Corporation name search will help you in this endeavor by showing a database or record of all business names in the state, so that you can compare and ascertain if your chosen name is unique. You can conduct Texas business name availability search through the Taxable Entity Search tool on the Texas Comptroller of Public Accounts (CPA) portal.

Are you a first time business owner wondering how to form a corporation in Texas? IncParadise one of the most reputed registered agents in the state can provide information and assistance towards helping you to incorporate in Texas.

Need any Assistance in Texas Business Name Search?

A business name is crucial towards creating an identity for a startup, which future customers or clients can relate to. A business name also plays a significant role in marketing and brand promotion activities. There is a creative side of a business name and then there is the process of registration, which requires you follow Texas business name rules.

You will need to check for availability of the new name and IncParadise can help you with the Texas business name search for your LLC/Corporation. We can also help you register your new business with the office of the Secretary of State and provide business focused additional services.

Want to start a New Business in Texas?