Get Your Paperwork Filed

Your pathway to business ownership starts with your first batch of paperwork. You have to make several important decisions, including how to structure your business, what to name it and where it will be based. These things will allow you to secure an EIN and any permits or licenses you need to operate.

The idea of opening your own shop probably sounds exciting. And it is. But the fun doesn’t really begin until you get your initial paperwork filed. This certainly won’t be the most exciting of your milestones. In all likelihood, these initial steps needed to officially declare yourself “in business” won’t seem particularly significant to anyone but you.

In Florida, you are officially considered to be “in business” after you have completed the following six steps:

01 / Choose a structure

Select from these four options: sole proprietorship, partnership, corporation or limited liability. The type of business you will own and number of employees you intend to hire will have a significant impact on your choice. See dba Florida^™ for guidelines and detailed descriptions of each structure.

 

02 / Pick a name

You have to give your business a name. Will you get creative or stick with the most obvious choice — your own name? That latter option might work well for professional firms, but for a restaurant, retail site or specialty business, you might want to opt for something catchy or memorable. Keep in mind that the best names for a business are:

• Concise – fewer than 10 letters
• Flexible – adaptable to new products and/or locations
• Original – not already in use (search trademarkia.com or uspto.gov to be sure)

 

03 / Find a location

Figuring out where you will put your business is a critical decision. Avoid falling in love with a particular neighborhood or commercial property until you have thoroughly vetted the location. Signing a multi-year lease too soon could lead to regrets later.

First, ask yourself a few pointed questions:

• Is the area zoned for my type of business?
• Are surrounding businesses complementary or competitive?
• Is there a labor pool I can draw from?
• Will I feel safe here?
• Can I afford the monthly rent?
• Do I even need a dedicated location or could I simply work from home?

 

04 / Obtain an Employer Identification Number (EIN)

Before you can pay your federal, state and local taxes, you need a federal employer ID number. If you are operating as a sole proprietor with no employees, your Social Security number is sufficient; otherwise, visit irs.gov/businesses to obtain a free Employer Identification Number (EIN).

 

05 / Open a Business Bank Account

After you get your Employer Identification Number, you should open a business bank account as soon as you are ready to start collecting or spending money. There are a range of options to consider, including checking, savings, credit card and merchant services accounts. A business account can offer several advantages over your own personal bank account. It offers some personal liability protection by keeping your business and personal funds separate; you gain a more professional appearance by allowing customers to pay your business; and you will often have access to a line of credit for emergencies or equipment needs.

 

06 / Secure necessary permits, licenses or registrations

Unless you are working from home as a sole proprietor with no employees, you will likely need one or more of the following to legally open and operate a business.

• Zoning Permit Must be obtained before receiving a business tax receipt. Apply at either the city or county zoning department depending on your location; some jurisdictions require both.
• BUSINESS TAX RECEIPT (aka Occupational License): Cities and counties typically issue separate business tax receipts. If your business is within city limits, you may need both. Contact your municipal and county government offices for clarification.
• STATE AND PROFESSIONAL BUSINESS LICENSES: More than 300 job categories/professions are required to get 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.
• REPORT NEW HIRES: If you are hiring any employees, you are required to report them to the Florida Department of Revenue within 20 days of their start date. This rule also applies to independent contractors, if you pay them $600 or more during a calendar year. The revenue department offers several reporting options, including directly through its website.
• HEALTH PERMITS AND LICENSES: These are required for public lodging and public food service businesses and are available from the Florida Division of Hotels and Restaurants. For licenses related to retail food stores, food processing plants and food storage/distribution businesses, visit the Florida Department of Agriculture and Consumer Services.
• BEVERAGE LICENSES: Businesses that sell alcoholic beverages need a beverage license through the Florida Department of Business and Professional Regulation. Fees are based on the type of beverages sold or served. Retailers and wholesalers of beer, wine or liquor must pay federal occupational taxes and obtain a control number from the U.S. Department of the Treasury.
• RETAIL ESTABLISHMENT LICENSES: Any business involved in financing the sale of goods or services sold by installment contract or revolving charge accounts for retail buyers is required to be licensed by the Florida Office of Financial Regulation. Also subject to licensing: collection agencies, consumer finance companies, mortgage brokers, securities dealers, investment advisors and mortgage business schools.
• ENVIRONMENTAL PERMITS: These permits are required for any business that is an actual or potential polluting source. One-time construction permits and renewable operating permits are also required. Permits are also required for dredge and fill, stormwater construction, water treatment and sewage treatment activities. Apply through the Florida Department of Environmental Protection.

For more detailed information about permits and licenses pertaining to your specific business, visit myflorida.com/dbpr and sunbiz.org.