{"id":2309,"date":"2022-04-12T05:35:39","date_gmt":"2022-04-12T05:35:39","guid":{"rendered":"https:\/\/www.mlgbusiness.com\/?p=1581"},"modified":"2022-04-12T05:35:39","modified_gmt":"2022-04-12T05:35:39","slug":"what-is-the-best-legal-structure-for-my-florida-business","status":"publish","type":"post","link":"https:\/\/fire.h50.us\/~morganpolicy\/blog\/what-is-the-best-legal-structure-for-my-florida-business\/","title":{"rendered":"What is the Best Legal Structure for My FL Business?"},"content":{"rendered":"

What is the Best Legal Structure for My Florida Business?<\/h1>\n

Our MLG Business Litigation Group attorneys<\/u><\/a>\u00a0know that it may be difficult for prospective business owners to determine which legal structure is best for their Florida<\/u><\/a>\u00a0business.<\/p>\n

While the type of business can help determine which legal structure will help drive its growth, the number of parties involved in its creation, operation, and success will ultimately determine whether you form a sole proprietorship, general partnership, LLC, or corporation.<\/p>\n

Here is what new business owners need to know about starting their vision on the right \u2014 and legal \u2014 foot.<\/p>\n

Is a Sole Proprietorship Legal Structure Right for My Florida Business?<\/h2>\n

The most basic legal structure for a Florida business is a sole proprietorship.<\/p>\n

Like it sounds, a sole proprietorship means you \u2014 solely \u2014 are the business.<\/p>\n

Sole proprietors must register the business under a name that is not their own and renew it every five years with the Department of State Division of Corporations<\/u><\/a>.<\/p>\n

The advantages of sole proprietorships include having zero equity interests issued to other parties, no restrictions on how the company operates, and the ability to transfer its ownership freely.<\/p>\n

The most common disadvantage of owning and operating a sole proprietorship is that there is no protection from its creditors, making the business owner personally responsible for all debts associated with the company.<\/p>\n

That means all creditors, including vendors or a property owner who holds the company\u2019s lease, can sue the business owner personally.<\/p>\n

To help avoid the risk of creditors successfully pursuing your business for its debts, consider creating a partnership, LLC, or corporation to protect your interests.<\/p>\n

Is a General Partnership Legal Structure Right for My Florida Business?<\/h2>\n

When two or more people form a for-profit business in Florida, it is called a Partnership.<\/p>\n

While no formal registration is needed to start a Florida partnership, all standard business enterprise rules apply once it is up and running, including how your business operations are governed by Florida\u2019s Revised Uniform Partnership Act<\/u><\/a>.<\/p>\n

In short, creating a partnership agreement establishes a rulebook for your business.<\/p>\n

This legal document dictates how the:<\/p>\n