S Corporations Taxed On One Level
If you want to set up a business in Florida, you have three options to choose from. You can either set up a sole proprietorship, a partnership or a corporation. If you opt for Florida business incorporation, you would be reaping a lot of benefits.
Like every other corporation everywhere, a corporation in Florida is regarded as a separate entity, with a personality distinct from its incorporators or corporators, directors and stockholders. The owners of the corporation's shares are not liable to the creditors of the corporation. Such persons' liabilities would be limited to their contribution to the corporation.
Name Your Corporation
If you would like to incorporate a business in Florida, there are various requirements that you have to comply with before your business can be incorporated. First and foremost, you have to choose a business name which is unique only to your business; no other business should exist with a similar or identical name within the state. Your business name should include any of these three words -- incorporated, corporation, or company -- which would indicate that the company is a corporation. You should definitely avoid using a name that would imply that your business is in any way connected to any government agency or office. Submit Articles of Incorporation The second step in incorporating a business is to prepare and submit your Articles of Incorporation to the Florida Department of State. The articles should state the number of incorporators. Florida requires at least one or more incorporators. However, there are no eligibility requirements that an incorporator must comply with. The Articles should also state the purpose for which the corporation is being established. It should also include the number, names and addresses of directors with a minimum of one director. The director should be a natural person and should at least be 18 years of age. The Articles should also include stock information, the authorized number of capital stock, the number of shares issued, and the number of paid-up capital stock. It should also state the principal address of the corporation as well as other optional corporation-specific provisions. The Bylaws, however, which may be required by other states to be submitted to the Secretary of State is not required by Florida laws to be submitted in order to validly incorporate a business. Pay the Fees In Florida, corporations are required to pay an annual corporate fee of $88.75 together with an annual report which would be submitted to the Department of State. The state of Florida recognizes S corporations. You can, therefore, form a corporation that is taxed only at one level. The corporation itself is not taxed; the tax is transferred to the stockholders who would be taxed in their individual capacity.
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