The Kinney Firm, P.A. can and will assist you with filing the necessary documents with the state of Florida to get you up and running today. If you are uncertain what entity is best for you, review the information below or purchase a phone or e-mail consultation with Florida attorney, Rian Kinney, to determine the best business entity for you.

Below are some of the benefits provided by the different corporate entities.

 

Reasons to Form a Florida LLC:

  • Avoid personal liability for business debts.
  • Perpetual existence, the LLC continues even if an owner dies or leaves the business.
  • Florida LLC’s may elect to be taxed as a Partnership. Pass-through taxation allows owners to report profit and loss on their individual tax returns, avoiding double taxation.
  • The LLC does not have to file a separate, Corporate tax return.
  • Owners need not be U.S. citizens or permanent residents.
  • Less stringent reporting requirements than Corporations. LLCs need not hold annual meetings or record meeting minutes (it is still recommended).

 

Reasons to Form a Florida S Corporation:

  • Avoid personal liability for business debts.
  • Perpetual existence, so the corporation continues even if an owner dies or leaves the business.
  • S Corporations can avoid the double taxation inherent in a C Corporation when the Owners report profit and loss on their individual tax returns and the S-Corporation files it’s corporate tax return.
  • S Corporations are able to attract investors by selling shares in the Company.

 

Reasons to Form a Florida C Corporation:

  • Avoid personal liability for business debts.
  • Perpetual existence, so the corporation continues even if an owner dies or leaves the business.
  • The most complex Corporation allows for different classes of stock: Common and Preferred. No limit to the number of C Corporation shareholders, who need not be U.S. citizens or permanent residents.
  • The Corporation can deduct employee benefits and business expenses from the Corporate taxes.

 

What is an EIN?

A Federal Employer Identification Number (EIN) is similar to an individual’s Social Security Number, in that it identifies a business for tax purposes. The EIN is issued by the Internal Revenue Service (IRS) and can also be referred to as a Tax Identification Number (TIN).

 

The IRS usually requires the following types of businesses to obtain an EIN:

  • Any business that hires employees, including sole proprietorships and single-member LLCs
  • All Limited Liability Companies (LLCs) with more than one member
  • All corporations

Banks may also require an EIN in order to open a business checking account. iTunes requires an EIN in order to register as a content provider.

The Kinney Firm includes obtaining a Federal Employer Identification Number on your behalf within every corporate formation.