STEP 1

Choose a Business Structure

Four options are available: sole proprietorship, partnership, corporation or limited liability company. Which one you choose depends on many factors, including the type of business you want to start and whether you plan to have employees or go it alone. See dba Florida™ for descriptions of each.

 

STEP 2

Choose a Name

One of your most important decisions. For ideas, think of keywords that relate to what you do or where you are; look to pop culture and literature; brainstorm with friends and family. Above all, remember to keep your name:

Concise Fewer than 10 letters makes it easy to recall, search and Tweet.

Flexible In case you want to one day expand your product line or locations.

Original Search www.uspto.gov or www.trademarkia.com to be sure no one else is already using the name you’re considering.

Note: If you plan to conduct business under a name other than your own, you must file a Fictitious Name registration application with the Florida Department of State, Division of Corporations. See dba Florida^™ for details.

 

STEP 3

Choose a Location

If your business will depend on customer traffic for success, choosing the right site may be as important as choosing a name. Additional factors to consider:

zoning Is the area zoned for your type of business?

affordability Can you afford the monthly rent for this location?

Condition Is the site occupant-ready or will renovations be needed?

Competition Are surrounding businesses complementary or competing?

potential employees Does the area offer a labor pool you can draw from?

 

STEP 4

Secure the Necessary Permits and Licenses

Unless you’re a sole proprietor working alone from home, you will likely need one or more of the following:

zoning permit Must be obtained before receiving a business tax receipt. If within city limits, apply at the city zoning department; outside city limits, apply at the county zoning department. Note: Some jurisdictions require both city and county permits.

BUSINESS TAX RECEIPT (Occupational License) If your business is within city limits, and the city and county issue separate business tax receipts, contact your municipal and county government offices to determine if you need just one or both.

STATE AND PROFESSIONAL BUSINESS LICENSES More than 300 job categories/professions require a license from either the Florida Department of Business and Professional Regulation or the Florida Department of Agriculture and Consumer Services. Health-related professions/businesses are licensed and regulated by the Florida Department of Health. Costs vary and applicants must meet established criteria.

HEALTH PERMITS AND LICENSES Required for public lodging and public food service businesses; available from the Florida Division of Hotels and Restaurants. Licenses for retail food stores, food processing plants and food storage/distribution businesses may be obtained from the Florida Department of Agriculture and Consumer Services.

BEVERAGE LICENSES Businesses that sell alcoholic beverages must apply for a beverage license through the Florida Department of Business and Professional Regulation; fees depend on types of beverages sold or served. Retailers and wholesalers of beer, wine or liquor must pay federal occupational tax and obtain a control number from the U.S. Department of the Treasury.

RETAIL ESTABLISHMENT LICENSES Required by the Florida Office of Financial Regulation for any business financing the sale of goods or services sold by installment contract or revolving charge account to a retail buyer. Also subject to licensing: collection agencies, consumer finance companies, mortgage brokers, securities dealers, investment advisors, mortgage business schools.

ENVIRONMENTAL PERMITS Required for any business that is an actual or potential polluting source; one-time construction permits and renewable operating permits are also required. Permitting is mandated for such activities as dredge and fill, stormwater construction, water treatment and sewage treatment. Apply through the Florida Department of Environmental Protection.

STEP 5

Obey the Law

Business owners must abide by numerous federal and state laws related to employee health, wages, safety and fair treatment. These are briefly summarized below with websites to visit for additional information.

Federal Labor Laws

Employment Eligibility Verification requires companies to pay at least the federal minimum wage ($7.25 per hour) and overtime pay of not less than one-and-one-half times the regular pay rate after 40 hours of work per week; also sets standards for types of jobs and hours/times teenagers may work. www.dol.gov

Occupational Safety and Health laws require businesses to provide a safe workplace and, in many cases, to maintain records of job-related injuries and illnesses. www.osha.gov

The Americans with Disabilities Act prohibits employment discrimination against qualified individuals with disabilities and requires that public accommodations and commercial facilities be designed to comply with specified accessibility standards. www.ada.gov

Family and Medical Leave requires businesses employing 50 or more to give certain employees up to 12 weeks of unpaid, job-protected leave per year (26 weeks for qualifying military caregivers) while preserving their health benefits during the period. www.dol.gov/whd/fmla

The U.S. Equal Employment Opportunity Commission enforces federal employment laws that protect civil rights and prohibit discrimination based on age, disability, gender, race, religion or sexual orientation including the Equal Pay Act, which prohibits wage discrimination between men and women performing substantially equal work within the same workplace. www.eeoc.gov

The Affordable Care Act requires all employers who provide self-insured health coverage to their employees file an annual return with the IRS detailing certain information for each employee they cover. To learn more about specific options and eligibility for possible tax credits, visit www.healthcare.gov or www.irs.gov/affordable-care-act/employers.

ENVIRONMENTAL PERMITS Required for any business that is an actual or potential polluting source; one-time construction permits and renewable operating permits are also required. Permitting is mandated for such activities as dredge and fill, stormwater construction, water treatment and sewage treatment. Apply through the Florida Department of Environmental Protection.

State Labor Laws

New Hires Requires employers to complete a New Hire Reporting Form for every newly hired or rehired employee, full- or part-time, within 20 days. www.fl-newhire.com

Minimum Wage The 2018 Florida minimum wage is $8.25 per hour; for tipped employees, it’s $5.23 per hour.

Workers’ Compensation Employers with four or more employees (full- or part-time) must carry workers’ compensation coverage for their employees; different requirements apply for construction and agriculture. www.myfloridacfo.com/division/wc

Child Labor Workers under age 18 cannot work in hazardous occupations such as excavation, electrical work, roofing, mining, operating heavy machinery or motor vehicles, or around explosives, toxic or radioactive substances or dangerous equipment. Additional occupations are banned for children ages 14-15. Minors cannot work during school hours without an exemption.

Background Checks Private citizens or companies may request a state-only criminal history record check of an individual through the Florida Department of Law Enforcement website for a fee of $24 per case. www.fdle.state.fl.us

STEP 6

Know Your Tax Liabilities

Florida Taxes

Corporate Income Tax Corporations are subject to a 5.5% tax and must file a return annually even if no tax is due. C-corporations pay the tax on Form F-1120.

Limited liability companies classified as corporations for federal income tax purposes must file a Florida corporate income tax return; limited liability companies classified as partnerships must file a Florida Partnership Information Return (Form F-1065) if they are doing business in Florida and one or more of their owners are a corporation. Also required to file: the corporate owner of an LLC that is classified as a partnership for Florida and federal income tax purposes.

S-corporations usually do not have to file a Florida corporate income tax return unless there is federal taxable income.

Reemployment Tax Required of Floridians who paid at least $1,500 in wages within a calendar quarter, have employed one person for any portion of a day in 20 different weeks during the calendar year or are liable for federal unemployment tax.

Sales and Use Tax Businesses engaged in taxable transactions must register using Form DR-1 or at the Florida Department of Revenue’s e-file site. File electronically or, if the tax is less than $20,000 per year, on Form DR-15. Businesses having $1,000 or less per year to report may file quarterly; $500 or less, semiannually; $100 or less, annually.

Use Tax on Out-of-State Purchases When out-of-state sellers fail to collect Florida sales tax, buyers must make the payment on their own using Form DR-15MO. Applies to items purchased out of state from Internet sites, mail order catalogs, auctions, shopping networks or toll-free shopping services, and to items physically purchased out of state when the merchandise is shipped to a Florida address.

Tangible Personal Property Tax An annual tax on personal property used for commercial purposes that is not included in the assessed value of the real property, excluding business inventory and state-registered vehicles; paid on Form DR-405 to the county property appraiser. All new businesses must file their first year; thereafter, no additional filing is required if the amount of tangible property is less than $25,000.

 

Federal Taxes

Personal Income Tax For sole proprietorships and partnerships, profits and losses from the business are typically passed through to the owners and reported on their individual income tax returns. Under the American Tax Cuts and Jobs Act passed in December 2017, this practice will continue. In addition, some small business owners may qualify for a new 20% pass-through deduction, but since IRS and Treasury guidance on this matter is not likely to come before summer, tax experts recommend simply filing estimates as usual to avoid penalties, figuring the total of quarterly payments to match 100% of what you owed last year (110% if you expect to make more than $150,000). For more detailed information, consult a tax professional.

Self-Employment Tax All net profits derived from doing business as either a sole proprietorship or partnership with no employees are subject to federal self-employment tax, which is equivalent to the Medicare and Social Security taxes employers withhold from their employees’ paychecks.

STEP 7

Put It All on Paper

Every new business begins with a dream, but wishes and what-ifs won’t be enough to sustain it. To succeed as an entrepreneur, you must know where you are going and how to get there, and then put it on paper as a formal business plan. No potential investor or financial institution will take you or your business seriously without one.

EXECUTIVE SUMMARY Highlight key strengths of your plan, including where you want to take your company and why your idea will be successful.

COMPANY DESCRIPTION Make this your extended “elevator pitch” to help readers, especially potential investors, quickly grasp the uniqueness of your business.

MARKET ANALYSIS Show that you understand your industry, target market, customers, competitors and pricing structure.

ORGANIZATION AND MANAGEMENT Describe your company’s organizational structure; introduce ownership and members of your management team.

SERVICE OR PRODUCT LINE Emphasize the benefits you can provide to current and potential customers.

MARKETING AND SALES Explain how you plan to promote your product, create customers and boost sales.

FINANCIAL PROJECTIONS Summarize your projected income and expenses, past credit history, intended allocation of resources and other financial details.

FUNDING REQUEST Lay out your current and future funding requirements, the intended use of any funds you may receive and types of funding you would prefer.

APPENDIX Include supporting information/documents: your credit history; letters of reference; resumes of key managers; leases; licenses, permits and/or patents; list of business consultants (attorney, accountant, etc.); relevant research, magazine articles or book references.

 

5 Tips to Create a Better Business Plan