Florida Corporation’s formation is a simple process that is
completed by filing the Articles of Incorporation with the Department of State.
In the guide here, we will show you step-by-step how to start a corporation.

What is a Florida Corporation?

A
Florida corporation is a business entity established in Florida with a legal existence separate from its owners, named shareholders. Who owns shares of the company’s corporate stock. Consolidating in Florida gives your business the power to access contracts, pay taxes, and take legal steps on its behalf. An excellent idea to separate the interests of your Florida corporation from your assets.

When
you consolidate in Florida, your business is directed by its corporate bylaws,
which define the ownership of the company. Plus, how it is determined. Although
a corporation’s management formation isn’t as smooth as that of an LLC (Limited
Liability Company). The corporate structure has committed the world over and requires the sort of respect you’ll likely require to bring investors as your company grows and develops.

Forming a Florida Corporation

If you
can open a business in Florida, one of the first things you must think of is the
type of business structure you want.

Your
choices include:

Forming
a corporation or LLC has some clear advantages. The biggest benefit is that
both structures restrict the liability of owners, indicating the owners are not
individually liable for the business’s liabilities and debts.

But
there are legitimate reasons to adopt a different structure for your new
business. Your choice is great, so you must discuss your choices with an
expert accountant.

Starting
a corporation in Florida has many steps. Filing the needed paperwork alone can be intimidating. Florida Incorporation Service can help you register your articles of incorporation with the state. It can also help you with employer identification number filings, stock certificates, corporate seals,
certificates of status, and more.

Benefits of a Corporation

A
the corporation offers restricted liability security, which indicates that you are
not individually responsible for the corporation’s debts and obligations.
Establishing a corporation also gives protection if someone accuses your business partner or employee. Corporations have many different benefits,
including tax advantages and the capacity to easily transfer shares from one owner to another.

Purpose

In
addition to producing a profit for shareholders, a Benefit Corporation must make a devotion to building a general public benefit. A Benefit Corporation’s general public advantage can involve operating in an environmentally sustainable process. Providing training for young people, or giving a certain portion of all profits to charity. The creation of the general profit must also be of benefit to the corporation in some way.

Accountability

The
directors of Corporations must always make judgments in the best interests of the business while examining how those decisions influence society and the environment. The business must be confined to giving long-term sustainable value for all stakeholders. Also, including the shareholders, suppliers,
clients, society, employees, and the environment.

Transparency

The
business activities of Corporations are performed with a great level of
transparency. They must always produce reports showing how they are managing
their business goals while having a positive influence on society and the
environment.

Florida
Benefit Corporations were entered because Florida law did not have a plan for a
profit-making corporation to hold a social purpose in addition to profit.

Types of Florida Corporations

You can
pick one of the various types of corporations in Florida:

  • S
    corporations – These corporations are successful because corporate taxes
    are managed on the owners’ personal tax returns.
  • C
    corporations – With this formation, the corporation pays its own taxes,
    and you can have an infinite number of owners.
  • Nonprofit
    corporations – Charities and other nonprofits are tax-exempt and not
    determined toward making profits.
  • Professional
    Corporations – These businesses are controlled by licensed professionals,
    such as doctors, and a professional association (PA) is set up to give
    their professional service.

Common Forms in Florida Corporation

  • Domestic
    For-Profit Corporation Articles of Incorporation
  • Articles
    of Amendment
  • Profit/Non-Profit
    Annual Report
  • Mergers
    and Conversions
  • Domestic
    For-Profit Corporation Articles of Dissolution Form
  • Resolution
    to Adopt an Alternate Name

How to obtain Certificate of Incorporation in Florida

In
Florida, all certificate of incorporation is circulated by the Department of
State’s Division of Corporations. While various Florida incorporation forms are found on the Department of State’s website, businesspeople and sole proprietors usually find the process confusing.

1. Select a Business Name

The
the first step to consolidating your business in Florida is to pick an original business. Make sure the name not previously in use by another entity in the state. Business names may not be held in the development of forming your new business. Your corporation’s name is needed to include the words “Company”,
“Incorporated”, or “Corporation”, or the abbreviations
“Inc.”, “Corp.”, or “Co.”

2. File the Articles of Incorporation for Florida

Your
the corporation will be professionally produced when filing the Florida Articles of
Incorporation with the Department of State Division of Corporations.

The
articles must enter the following information:

  • Corporation’s
    name
  • Office
    street address
  • The
    Corporation’s purpose
  • The name,
    a signature, and address of the registered agent for service of process
  • The name
    and address of the person incorporating the company

3. Get an Employer Identification Number (EIN)

If you
plan to hire employees or open a bank account, you will require a federal Employer Identification
Number (
EIN).

4. Obtain all required licenses from the state, city, and county.

Depending
on your kind of corporate and its location, your corporation may require to enroll for additional city-specific or state business licenses.

5. Pay the charges to
Incorporate in Florida

How much does it cost to include in Florida? It can depend on numerous variables, such as where you
are placed and what kind of corporation you run. Extra fees may also require to
be paid to the Florida Department of State Division of Corporations. Some
general corporation fees include:

  • Verified
    copy fee
  • Certificate
    of Status
  • Foreign
    name renewal
  • Reinstatement
    for a nonprofit
  • Reinstatement
    for a profit corporation
  • Resignation
    of the registered agent for an active corporation
  • Resignation
    of the registered agent for an inactive corporation

Choosing Between a Florida S
Corp and a C Corp Tax Designation

Because
limits on liability, building, management, and compliance documents are almost
identical, choosing between an S Corp and a C Corp in Florida comes down to the
following points:

  • Ownership Rules: A C Corp can have
    countless shareholders and unrestricted stock classes. An S Corp is
    restricted to the highest number of shareholders normally 100, and only
    one stock class.
  • Taxes: A C Corp is taxed individually. It files taxes at the corporate level, and shareholders pay taxes on dividends they get. S Corps are held “pass-through” tax entities.
    No taxes are paid at the corporate level, but corporate owners are taxed separately on dividends they receive.
  • Documents: An S Corp must file IRS Form 2553 to choose S Corp status and for C Corp the form 1120.

Main Requirements for
Florida Corporation

Each
the state has its organization requirements for incorporating it. In Florida, they
cover the following:

  • Age
    condition: There is no minimum age necessary for incorporators, officers,
    or directors.
  • Some
    officers or directors: Your corporation must have at least 1 officer,
    director, or incorporator. You don’t have to expose officers or directors in your Articles of Incorporation. But you must enter your incorporator.
  • Residency:
    Incorporators, officers, and directors do not have to stay in Florida.
    They’re allowed to get mail and notice in any jurisdiction, including foreign countries.

 Articles of
Incorporation

In
In addition to faculty requirements, your Florida Articles of Incorporation must also, add the following.

All
Florida corporation should select a registered agent. Florida asks that you enter the name of your agent in your Articles of Incorporation. Your enrolled agent can be a person or a company, but it can’t be the corporation itself. A
certified agent is liable for receiving tax, legal, and government documents for your corporation through regular business hours. The certified agent must have a physical mailing address, not a post office box, settled in the state.
We can help you choose your registered agent when you incorporate it with us.

A Florida
profit corporation’s Articles of Incorporation must enter the number of shares of stock the corporation is entitled to issue. The articles of Incorporation must also reveal the plan for which the corporation is being organized and formed. This data can be limited to one or several sentences. Both the incorporator and your certified agent must sign and date the Articles.

Comply with Important Tax and Regulatory Conditions

Added
tax and regulatory requirements refer to your corporation. These include:

EIN: Your corporation must get a federal employer identification number (EIN). You may get an EIN by creating an online application on the IRS website. There is no filing fee.

S
Corporation Filing
: If the corporation needs to elect S corporation status for tax purposes, it must submit Form 2553 Election by a Small Business Corporation (confirmed by all the shareholders). The election must be filed within 2 months and 15 days after the start of the corporation’s first tax year. View the IRS S Corporation Fact
Sheet for details.

Business Licenses: Depending on its kind of business and where it is located, your corporation may require to get other local and state business licenses.

If you are willing to incorporate your business, companies, and corporation in Florida. Do read the above article in detail. For Accounting and Bookkeeping services, Autofilings is there to help a lot. To connect to experts through the website or call on the number on the website.

Also Read:

What is an S Corporation and how it benefits you
Ways in which Business Structure Affects Taxes