When you want to open your own business in Florida, you will need to figure out what type of business structure you want to create before doing so. Different business structures offer different benefits and drawbacks, so you need to consider many things before establishing your business under a particular business type.
If one of your priorities involves protecting yourself and your assets should someone file a lawsuit against your company, some business structures may better suit your needs than others. Also, it is important to recognize that virtually all business owners have areas where others could potentially try to hold them liable. This holds true even for those who own businesses that may not have obvious risks. So, if protecting your personal assets is a goal of yours, consider establishing your entity as either an S corporation or a limited liability company.
The S corporation
If you want to reduce personal liability within your business, or if you plan on one day seeking investors for that business, consider creating an S corporation. In addition to protecting your personal assets, an S corporation offers certain tax benefits, but it does come with some clear operational requirements about filing paperwork each year and maintaining a board of directors.
The limited liability company
If you want to protect your personal assets and do not plan on seeking investors for your business, you may want to think about establishing a limited liability company. The limited liability company is relatively easy to run, and, unlike an S corporation, you can have as many business owners as you want with this type of business structure.
Regardless of whether you decide on an S corporation, a limited liability company or a different business type entirely, make sure you stay current on all compliance requirements. Otherwise, you could potentially place your personal assets at risk in the event someone tries to come after your business.