If you sell anything but your labor (and maybe even that), you are a business. If have help, you are a business organization, and if you do not set the terms for that organization, the law will impose terms upon you.
Often the terms imposed are considerably less favorable than those that would have been selected. For example, two people who mow lawns together are by default partners, which means that they can each be held responsible for the other’s actions. If they organized as a limited liability company instead, not only would they not be responsible for each other’s actions, neither would be personally responsible for the debts of the company, and the company would not be responsible for the personal debts of either.
Depending on the goals of your business, you may want to consider drafting a partnership agreement, organizing a limited liability company, incorporating, or even creating a trust. If you are planning to operate a retail outlet like a restaurant or store, you will probably also need to consider registering a fictitious name. You can do all of these things through an online provider, or directly through the Florida Secretary of State’s portal. If you are not sure whether you should form a corporation or an LLC, or if you need to register to collect sales tax or obtain a tax identification number, contact us and we can help you through the process.
There are many different ways to organize a business in the State of Florida. Schedule a consultation to discuss your business goals and structure so that we can help protect your business, and your personal assets. In addition to asset protection, if you are going into business with others, we can help you plan for common issues that arise in businesses with multiple owners, like whether to use capital contributions or member/shareholder loans, how to treat contributions of labor by members/shareholders, how to determine distributions and salaries, and how to handle shortages in capital down the road.
If you would like to schedule a free initial consultation for bankruptcy or foreclosure defense, please contact our office.
Call : 321-784-8158
Offices located in Cocoa and Melbourne, FL
Info@FaroLaw.com Mon – Fri 9:00 am -5:00 pm