Recently send this feed back to Google for information; Easier instruction on monetizing the blog including add
sense would be helpful. My goal s to develop the site into an organization not
necessarily political leaning giving back & coordinating projects within to
the community also offline. Wanting to get this idea off the ground. The below is information which may provide clarity; personally awaiting input from the partner. Thank you!
In Florida, a sole proprietorship is the simplest
business structure, offering no liability protection, while an LLC (Limited
Liability Company) provides liability protection and flexibility, and a
nonprofit is designed for organizations pursuing public or private charitable
interests. Each has distinct characteristics in terms of liability,
taxation, and operational requirements. [1, 2, 3]
Here's a more detailed breakdown:
Sole Proprietorship:
- Definition:
A business owned and run by one person with no legal distinction between
the owner and the business. [4]
- Liability:
The owner is personally liable for all business debts and obligations. [1,
5,
6]
- Taxation:
Profits are taxed at the owner's individual income tax rate, with
potential self-employment taxes. [7, 8]
- Formation:
Simple and inexpensive to establish, often requiring only a fictitious
name registration if operating under a name other than the owner's. [4,
6]
- Flexibility:
High degree of flexibility in decision-making and operations as the owner
has full control. [5,
6]
- Limitations:
Lack of liability protection is a major drawback, and it can be
challenging to raise capital or expand. [5,
6]
Limited Liability Company (LLC):
- Definition:
A business structure that combines the pass-through taxation of a
partnership or sole proprietorship with the limited liability of a
corporation. [1,
9]
- Liability:
Offers liability protection, shielding the owner's personal assets from
business debts and lawsuits. [2, 10]
- Taxation:
Can choose to be taxed as a sole proprietorship, partnership, or
corporation (C-corp or S-corp). [9,
11]
- Formation:
Requires filing Articles of Organization with the Florida Department of
State and appointing a registered agent. [12,
13,
14,
15]
- Flexibility:
Offers flexibility in management and operations, including the ability to
have multiple members. [10,
16]
- Advantages:
Provides liability protection, potential tax benefits, and greater
credibility with investors and clients. [2, 10]
Nonprofit:
- Definition:
An organization formed for charitable, educational, or scientific
purposes, not for generating profit. [1,
1,
17,
17,
18,
19]
- Liability:
Offers liability protection, similar to an LLC, for its members and
directors, provided it operates within the legal framework. [3, 3, 20,
20]
- Taxation:
Can apply for tax-exempt status with the IRS (501(c)(3)), meaning it's
exempt from federal income tax on income related to its exempt purpose. [17,
17,
20,
20]
- Formation:
Requires filing Articles of Incorporation with the Florida Department of
State and applying for federal tax-exempt status. [13,
14,
15,
20,
20]
- Operational
Limitations: Subject to regulations regarding its activities,
fundraising, and distribution of funds, with restrictions on using income
for private benefit. [3,
3, 17,
17,
21,
21]
- Funding:
Primarily relies on donations, grants, and fundraising activities to
support its mission. [17,
17,
20,
20]
AI responses may include mistakes.
[1] https://www.capecoral.gov/entrepreneur_guide/legal_structure.php
[2] https://www.zenbusiness.com/sole-proprietorship-vs-llc/
[3] https://www.upcounsel.com/llc-vs-nonprofit
[4] https://dos.fl.gov/sunbiz/start-business/corporate-structure/
[5] https://www.virtualpostmail.com/blog/article/sole-proprietorship-vs-llc-everything-you-need-to-know/
[6] https://boyerlawfirm.com/blog/single-member-llc-sole-proprietorship/
[7] https://www.youtube.com/watch?v=pMoHLb3U6Sw
[8] https://gusto.com/resources/articles/taxes/florida-small-business-taxes
[9] https://nchinc.com/blog/business-funding-tip/do-i-incorporate-or-form-an-llc-in-florida/
[10] https://www.legalzoom.com/articles/llc-vs-sole-proprietorship
[11] https://www.findlaw.com/smallbusiness/starting-a-business/sole-proprietorship-vs-llc.html
[12] https://cindysfloridallc.com/FL-LLC-Benefits/LLC-vs-Sole-Proprietorship
[13] https://tremblylaw.com/blog/florida-llc-rules-everything-you-need-to-know/
[14] https://ceriniandassociates.com/florida-nonprofit-requirements/
[15] https://www.flpatellaw.com/sole-proprietorship-in-florida/
[16] https://wyomingllcattorney.com/Blog/Florida-LLC-vs-Sole-Proprietorship
[17] https://www.resilia.com/blog/nonprofit-vs-llc-which-one-is-right-for-you
[19] https://incfile.zendesk.com/hc/en-us/articles/360001775031-Forming-a-Nonprofit-Corporation
[20] https://www.zenbusiness.com/nonprofit-llc-vs-nonprofit-corporation/
[21] https://www.upcounsel.com/should-a-nonprofit-be-an-llc-or-corporation
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How to Start a Sole Proprietorship in Florida
by Chamber of Commerce Team
We might receive compensation from the companies whose
products we review. We are independently owned and the opinions here are our
own.
- What
is a sole proprietorship?
- How
to set up a sole proprietorship in Florida
- How
is a sole proprietorship different from an LLC?
- Best
LLC services
- What
are the benefits of being a sole proprietor in Florida?
- How
are sole proprietors taxed in Florida?
- FAQs
Once you’ve decided to start a business, you have a series
of other important decisions to make, including what the structure will be. As
a sole proprietor, you are the sole person affiliated with your business. While
this is a simple structure, there are still formal processes you must follow to
get your business set up in Florida.
This guide will explain what a sole proprietorship is, how
it differs from other business structures, and provide instructions for
business owners to set one up in the Sunshine State.
What is a sole proprietorship?
A sole proprietorship is a business entity that refers to a
business that is unincorporated and has a single owner. This is the simplest
possible structure to set up a business. While there can only be one owner, a
sole proprietorship can have employees and obtain an Employer Identification
Number (EIN).
As a sole proprietor, your business profits are taxed as a
part of your personal income. This makes the process simple, but can also
expose you to personal liability in some cases.
How to set up a sole proprietorship in Florida
1. Choose your business name
Florida law allows you to operate a sole proprietorship
under a name other than your own. While you can use your name, most people
choose a specific business name. If you want to do this, you should first
search the Florida Department of State’s website to see if the name you chose is taken or if
something similar exists.
State laws require the name of your business to be unique,
and you may want to check the U.S. Patent and Trademark Office’s website to ensure you don’t face trademark
infringement issues.
2. File a trade name
If you do use a name that is different from your legal name,
Florida requires you to register the trade name. You can do this by mailing
the Trade
Name Form to the Department of State or using the Online
Fictitious Name Registration form.
There is a $50 filing fee if you decide to operate under a
trade name. You will also be required to publish the name in a local newspaper
within the county where your business will operate as a “legal notice of intent
to file a fictitious business name”. This newspaper must meet certain
requirements such as being at least 25% in English and published at least once
per week.
3. Obtain licenses, permits, and zoning clearance if needed
Depending on the industry of your business, you may need to
obtain a variety of business licenses or permits. This is managed by the
Florida Department of Business and Professional Regulation (DBPR), though some
areas like health care are licensed by independent areas.
You should also explore local regulations like building
permits and zoning clearances where appropriate.
4. Obtain an Employer Identification Number (EIN)
If you’re planning a new hire, you need to obtain an EIN.
This nine-digit number is issued by the IRS and used for tax purposes when you
need to report wages. You can file for an EIN online through the IRS website.
If you do not have employees, you can use your Social
Security Number to file taxes and are not required to have an EIN. However,
some banks will require new business owners to have an EIN to open a business
bank account, so you may want one anyway.
How is a sole proprietorship different from an LLC?
A Florida LLC is a limited liability company that can be
formed by one or multiple people. The primary difference in an LLC is that it
is a separate legal entity from the owner. In other words, your business and
your personal assets are separate. With an LLC, taxes are filed separately and
the business’ liability does not translate to the owner.
Setting up a sole proprietorship is simpler than setting up
an LLC because it does not have the same business tax implications.
If you’re freelancing, you might wonder if you need to set
up a sole prop. If you plan to hire freelancers, then yes. To hire others, you
need a business structure like a sole proprietorship.
If you don’t plan to hire anyone, you can continue to
freelance and pay taxes on the income without setting up a sole prop.
Best LLC services
Our picks for LLC formation services
https://www.chamberofcommerce.org/sole-proprietorship/florida
