Now that you are putting your plans into writing, it’s essential to understand exactly what you’re getting into. Before investing your time, money and energy into this venture, you have to be certain that business ownership is truly the right path for you. Spend some time focusing on the key things every aspiring entrepreneur needs to know.
If running a business was easy, almost everyone would be doing it. This dream of yours is hardly unique. Instead it is one that is shared by millions of people. And as we discussed earlier, many of those dreams will end in disappointment. But for those who prepare and persevere, the future is wide open and full of promise.
Invest time and money in college-level courses to collect basic business skills, including budgeting, strategic planning, data analysis and time management. Take a job working for the type of company you want to create. Even better, find someone to be your mentor. Another entrepreneur or a respected instructor can offer advice and counsel as you start down this path.
If this is your first time owning or operating a business, this is a good time to seek help. And always be willing to seek answers to your questions (even the ones that seem stupid). It is the best way to learn.
Are You Really Ready?
No two business pathways are exactly alike, but they do all have elements in common. Among them: No matter how prepared you think you are, you will face unexpected challenges.
That’s why it’s never enough to simply work in a field or have necessary professional credentials and/or licenses. Being a registered cosmetologist, real estate broker, dietitian, paralegal or CPA is only part of the equation. You also need a working knowledge of how your business needs to operate to be successful.
Ask yourself these questions:
- Am I prepared to be my own boss? Do I have a mentor to guide me and, if not, where can I find one?
- Do I have the necessary assets — skills, stamina, capital, etc. — to make it as an entrepreneur?
- Do I know how to establish an online presence?
- Do I understand social media and how to use it effectively?
- How will I hire for my business? And how many employees will I need?
- If I don’t intend to have employees, how will my business survive if I get sick or incapacitated?
Defining Your Business Structure
You will need to define your business, in terms of its basic structure. To help with this, start by answering a few basic questions:
Who: Is it just me? Maybe with a couple of assistants? Or will I need a larger staff to cover multiple shifts? Will I need temps for busy times?
What: Will I have a retail shop? Professional practice? Online only? Catalog and/or mail order?
When: Will I have regular or flexible hours? By appointment only? Walk-ins welcome?
Where: Do I need a storefront, stand-alone office or suite in an existing business? Or can I do this from home with a laptop?
Don’t Forget the Legal Considerations
Wherever you are doing business, there are going to be laws and regulations you need to follow. Part of your preparation is making sure you are fluent in labor and tax laws. You need to know how your business is affected by state and federal laws.
Let’s look at some critical areas:
TAX LAW
If you are doing business in the U.S., you will be paying federal income tax on your earnings. Depending on where you are located, you may also need to pay a range of other taxes, including reemployment tax, sales and use tax and tangible personal property tax. These will vary, based on your business type, size and personnel.
FLORIDA TAXES
Corporate Income Tax
Corporations are subject to a 5.5% corporate income tax and must file a return annually even if no tax is due. C-corporations pay the tax on form F-1120. If your corporation owes more than $2,500 annually in Florida corporate tax, you must make quarterly estimated tax payments.
Limited liability companies classified as corporations must file a Florida Partnership Information Return (Form F-1065) if they are doing business in Florida and one or more of their owners is 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.
Due: April 30, July 31, Oct. 31, Jan. 31
Reemployment Tax
This tax is 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.
Due: April 30, July 31, Oct. 31, Jan. 31
Sales and Use Tax
Businesses engaged in taxable transactions must register online or by mail with the Florida Department of Revenue using Form DR-1 (Florida Business Tax Application). Taxes may be filed electronically or, if 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. These payments apply 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.
Due: First day of the month after the quarter in which the purchase was made.
Tangible Personal Property Tax (TPP)
There is an annual tax on all goods, property other than real estate and other articles of value that an owner can physically possess, and which have intrinsic value. Anyone who owns Tangible Personal Property on January 1 and has a proprietorship, partnership or corporation, or is a self-employed agent or contractor, must submit form DR-405 to the county appraiser by April 1 each year. Property owners who lease, lend or rent property must also file a TPP return annually by April 1.
FEDERAL TAXES
Personal Income Tax
For sole proprietorships and partnerships, profits and losses from the business are typically reported on the owners’ individual income tax returns. Under the Tax Cuts and Jobs Act of 2017 (parts of which were made permanent in 2025), some small business owners may continue to qualify for a 20% pass-through deduction. For more detailed information, consult a tax professional.
Due: April 15 / Quarterly estimates due: April 15, June 15, Sept. 15, Jan. 15
Self-Employment Tax
All net profits derived from doing business as either a sole proprietor or partnership with no employees are subject to federal self-employment tax. This is equivalent to the Medicare and Social Security taxes employers withhold from employees’ paychecks.
Due: April 15
LABOR LAW
You don’t need to be an expert in labor law to run a business. But you must have at least a working knowledge of federal and state requirements covering employee health, wages, safety and fair treatment.
FEDERAL LABOR LAWS
Federal Minimum Wage
The federal minimum wage is $7.25 per hour. (dol.gov)
Occupational Safety and Health Act
Businesses are required to protect workers from health and safety hazards on the job. (osha.gov)
The Americans with Disabilities Act
Employers may not discriminate against qualified individuals with disabilities and may be required to make public accommodations. There may also be accessibility modifications required for commercial facilities. (ada.gov)
Family and Medical Leave
Businesses with 50 or more employees are required to give certain employees up to 12 weeks of unpaid, job-protected leave per year (26 weeks for qualifying military caregivers) while preserving health benefits. (dol.gov/whd/fmla)
Equal Pay Act
The law prohibits wage discrimination between men and women performing substantially equal work within the same workplace. (eeoc.gov)
STATE LABOR LAWS
Florida Minimum Wage
The state’s minimum wage is currently $14.00 per hour or $10.98 per hour for tipped employees. These rates will increase by $1 per hour in September 2026. After that, the wage rate will be adjusted annually for inflation.
Workers’ Compensation
Employers with four or more employees (full- or part-time) are required to carry workers’ compensation coverage, though different requirements apply for construction and agriculture companies. (myfloridacfo.com/division/wc)
Child Labor
Workers under the age of 18 are prohibited from working in certain hazardous occupations, such as excavation, electrical work, roofing and mining. Additional occupations are banned for minors aged 14-15 years. In most cases, minors cannot work during school hours without an approved exemption. (myflorida.com/DBPR/child-labor)
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 $24.(fdle.state.fl.us)