Business Startup Guide

Step 1 – Research Your Idea

Now is the perfect moment to investigate your idea to confirm its feasibility. Do you know your potential customers? What price will people be willing to pay for your product or service? Have you calculated your total costs? Who are your competitors? As you prepare for your startup venture, ensure you thoroughly research and comprehend the market you are about to enter.

Step 3 – Decide on Your Business Structure

Regardless of the type of business you are developing, it’s essential to ensure it is legally established. The first step is to determine the most suitable business entity (legal structure) for your needs.

Consider the management, structural, and tax implications of your decision carefully.  If you decide to incorporate your business, there are several factors to consider. Additionally, various regulations may affect how your business can legally operate in Florida and your local municipality.

As a new business owner, one of your first decisions will be how to structure your business. Every business must adopt a legal configuration that defines the rights and liabilities of participants in terms of ownership, control, personal liability, lifespan, and financial structure. This decision will have long-term consequences, so consulting with an accountant and attorney is advisable.

When making your choice, consider the following factors:

• Your vision for the size and nature of your business.
• The level of control you wish to maintain.
• The degree of “structure” you are willing to manage.
• The business’s vulnerability to lawsuits.
• Tax implications of different organizational structures.
• Expected profit (or loss) of the business.
• Need to reinvest earnings into the business.
• Your requirement for withdrawing cash from the business.

Visit Sunbiz.org for more information on business structures.

Step 5 – Obtain Necessary Tax Information

Taxation for small businesses can range from simple to complex, depending on the size and business structure. Each business will have different tax liabilities, so it’s important to consult your attorney and accountant for comprehensive tax planning.

As an employer, you will need to manage additional responsibilities such as employment insurance and worker’s compensation insurance. This also includes applying for federal and state withholding numbers.

• For Federal Identification Numbers (EINs), apply through the Internal Revenue Service.
• For State Sales Tax and State Withholding Tax, visit the Florida Department of Revenue.

NEW COMPLIANCE REQUIREMENT: Make sure to submit a Beneficial Ownership Information Report. Visit here for more information.

Step 7 – Consider Insurance Options

Consider several types of insurance that may be necessary or required for your business:

• Business/Property Insurance: Protects you financially against various losses, such as fire, theft, or damage, in exchange for a premium payment.
• Life/Health/Casualty Insurance: Available for personal use by you and your team members.
• Workers’ Compensation Insurance: Required for some businesses.

Choose an insurance company and agent with whom you feel comfortable and who will:

• Show you how to minimize risks.
• Communicate updates to your coverage as your needs change.
• Protect your company’s property against risks.

Look for an agent with experience in helping businesses achieve their goals and who provides regular updates. Ideally, this will be an established agent from a financially stable company with high ratings.