One of the first things that you have to do when you want to start a business in Florida is to determine what type of business structure to use. One of these options is the sole proprietorship. This is a cost-effective and simple way to start a business in this state.
Sole proprietorships don’t require formal registration, so you can begin business operations quickly. Even though you don’t have to formally register, there are other steps you may have to take to be able to operate legally.
Choosing your business name
You must register the business name if you’re using something other than your own name. This is known as registering a “Doing Business As” (DBA) and must be done through the Florida Division of Corporations.
Obtain necessary licenses and permits
Although Florida doesn’t require sole proprietors to register with the state, businesses may need local or industry-specific licenses. Requirements vary by city and county, so checking with local government offices is essential. If you’re selling taxable goods or services, registering for a sales tax permit with the Florida Department of Revenue is necessary.
Apply for an EIN if needed
Sole proprietors without employees can use their Social Security number for tax purposes. However, obtaining an Employer Identification Number (EIN) from the IRS is recommended, especially if hiring employees or opening a business bank account. An EIN helps separate personal and business finances.
Throughout the journey of starting your business, you need to ensure you’re doing what you can to protect your interests. Working with someone who’s familiar with this process may be beneficial.