Why should you incorporate your business in Florida? Being in a corporation is considered by the state as the unique entity. This is separate from those sole proprietorship and general partnerships. The corporation can also be taxed but has its beneficial. The members of the corporation are called shareholders. But being a member in a corporation incorporated in Florida has its own big advantage. One example is the cheap filing fee compared to other states. The shareholders will elect its own board of directors to manage the decision making and policies of the corporation. This post enumerates the advantages and disadvantages forming Florida Corporation.
- The members will have the protection of its personal assets because the corporation has limited liability over shareholders. It means that if the corporation has debts creditors will not force to pursue the personal assets of shareholders such as house or car.
- Corporation has the ability to increase funds using the sale of stock.
- The corporation can have benefits that are provided to the employees and officers. These are deductible on the salaries.
- Can open more opportunity to foreign investors and exchange shares to raise funds on the corporation.
- Unlike forming an organization, the incorporation process will require money and time to the one processing it. There are many fees to pay and requirements to process, especially if the business is not registered in Florida.
- Since the corporation are monitored by many government bodies, it requires more paper works when filing.
- Incorporating may result to twice taxation because they are not deductible on business income.
There are many more to learn about Florida Corporation such as about Llcfl. This is to decide whether to incorporate your business or not. Through this, you will know what can you gain from them and effect on your business.