Sole Proprietorship in Florida
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We are your Florida Sole Proprietorship Attorneys.
Our Florida business lawyers serve clients who are starting their business in Florida in Palm Beach County, Broward County, Miami Dade County, and most other Florida cities and counties.
What is a Sole Proprietorship?
Sole proprietorship is the easiest type of business to form as there is no state filing requirement. However, this structure does not offer any personal liability protection.
A Sole Proprietorship is formed when an individual begins and conducts a business as himself, herself, or under an assumed name. Whether you mean to start a business or not, if you transact business in the state of Florida, without a partner, knowingly without registration, your business will likely be legally classified as a sole proprietorship
In Sole Proprietorship there is no legal difference between the owner and the business. Thus, the owner is personally accountable for all debts, losses and legal responsibilities of the business including personally susceptible to suit for damages caused by the business. This means that all owners’ personal assets can be encumbered, frozen, seized or sold as the sole proprietorship structure offers no protection from liability.
This may lead you to ask, “What are the benefits of starting a Sole Proprietorship?” The easiest answer to that question is simplicity and cost.
Taxation in a Sole Proprietorship
Tax simplicity occurs because a sole proprietorship is what is known as a “Pass Through Entity.” The owner simply claims and pays the usual personal income taxes on any income generated from the business.
Registration simplicity, the paperwork and formalities are very minimal compared to forming any other entities, so this may be appealing from a cost, speed, and ease perspective.
However, although some of those advantages may sound appealing, the susceptibility to personal liability leaves a sole proprietorship a very poor option in Florida.
We understand the challenge of properly structuring a business because like you, we’re business people.
We also happen to be Florida Transactional and Business Law Attorneys.
A critical step in launching your business is choosing the right business structure.
We can help.
By carefully choosing the right business structure, you can limit your personal liability, take advantage of tax opportunities, and rest easy knowing that your company has set forth clear instructions on acceptable and efficient operation.
Our Florida business attorneys can help you choose the right business entity by listening to your concerns. Our Florida business lawyers will also raise necessary considerations that you may not have considered. Most importantly, we will relieve the burden of organizing, drafting, and filing the proper documents with the state.
Call us. We want to hear your story and share our experience.