Business Formation and Incorporation

Starting a business requires careful planning and knowledgeable guidance to ensure a solid foundation for success. At McGee Law, we’re dedicated to helping entrepreneurs and business owners navigate the intricacies of business formation and management. Let us help you get your business started on the right foot.

Business Formation 

We provide comprehensive support throughout the business formation process. We understand that each business is unique, and we take the time to understand your goals and objectives, offering personalized advice tailored to your specific needs.

Choosing a Business Entity 

There are several types of business entities. Which is best for your new venture depends on your goals now and in the future. Here are the most common types of business entities: 

Sole Proprietorship

Sole proprietorships are owned and run by individuals. When you start a small business in Florida, you’re automatically considered a sole proprietor unless you file with the state. Sole proprietorships and the individuals running them are linked together. There is no legal distinction between them, so you could be sued for your personal assets if someone sues your business. 

LLC 

Limited Liability Companies (LLCs) are business entities that operate independently. In the event of a lawsuit against your LLC, the plaintiff can only seek damages from business profits. LLCs offer a flexible business structure without the formalities associated with corporations. They can be run individually or by a group of employees or contractors. LLCs must be registered with the state and comply with annual registration fees and licenses, depending on the nature of the business. 

Partnership 

Partnerships are formed when more than one person has a stake in the business. Each partner contributes to the business with money, skill, and expertise. 

Corporation 

Corporations act as independent entities. Corporations can get loans, file lawsuits, and enter contracts under the corporation name. Business ownership in a corporation is obtained by owning shares of the company. There are two types of corporations. S Corps are available to small businesses with 100 or fewer shareholders. C Corps pay their own taxes and can have unlimited owners. 

Forming a Corporation in Florida 

Here are the steps for forming a legal corporation in Florida:

Choose a Name

All corporations must have the company name and “corporation” or “incorporated” in the title. You’ll also want to ensure the business name isn’t used elsewhere. 

File a Certificate of Incorporation

You must file a certificate of incorporation with the Florida Division of Corporations. The certificate needs to include details about the business, including officer contact information and the number of available shares.  

Appoint a Registered Agent and Select a Board of Directors 

A registered agent is a person (or another corporation) that accepts documents on the corporation’s behalf. All corporations must have a board of directors, a governing body for your business with fiduciary responsibility. 

Make Corporate Bylaws 

This internal corporate document explains the rules and guidelines your corporation will follow. 

First Board Meeting 

This first meeting as a corporation is when you’ll formally elect your board of directors, appoint corporate officers, adopt bylaws, select a bank, and authorize the issue of stock shares. During this meeting, you can also set the fiscal year start and end dates, develop a stock certificate form, and establish a corporation seal. 

Our team at McGee Law can help you navigate the often complex legal process of incorporating your business. Contact us today!  

Annual Reporting 

Corporations must file an annual report to stay active. The first report is due in the year following your corporation’s formation. Our legal team can help you meet annual reporting requirements to remain compliant. 

McGee Law, PLLC: Business Lawyer in Palm Coast  

At McGee Law, we provide comprehensive support throughout the business formation process. Our team is committed to serving as your trusted legal partner, helping you make informed decisions and safeguarding your business interests. Book your free consultation or contact us online to get started. 

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