Corporation Formation

The main types of corporations are the C-Corp, the S-Corp, the benefit corporation, the close corporation, the professional corporation and the nonprofit corporation. B-Corp certification gets lumped in too, though it’s not a legal structure. Some of these are true entity types under state law, and some are just tax elections or certifications layered onContinue reading “Types of Corporations: S-Corp, C-Corp, B-Corp, and More”

So, what is a C-corporation? It’s the standard form of corporation in the United States: a legal entity separate from its owners that pays its own income tax. That separate tax is the catch. Profits get taxed once at the corporate level and again when they’re paid out to shareholders as dividends. In return youContinue reading “What Is a C-Corporation? Structure, Taxes, and Requirements”

An S-corporation isn’t a type of business you form. It’s a tax election. A corporation or LLC files IRS Form 2553, and from then on its income, losses, deductions and credits pass through to the owners’ personal returns instead of being taxed at the corporate level. That’s the whole idea. What makes it worth knowingContinue reading “What Is an S-Corporation? Complete Guide”

A close corporation in Florida is a small, closely held corporation that runs more like a partnership: a handful of owners, restrictions on who can buy shares, and fewer corporate formalities, while keeping a corporation’s liability protection. It suits family businesses and small partner groups that never plan to bring in outside investors. For mostContinue reading “Close Corporation in Florida: What It Is and Who It’s For”

A professional corporation in Florida is called a Professional Association, or PA. It’s the corporate structure licensed professionals such as doctors, lawyers, accountants and architects use when they want to incorporate their practice, and its defining rule is simple: every shareholder has to be licensed in the same profession. It costs $70 to file withContinue reading “Professional Corporation in Florida: Requirements for Licensed Professionals”

Florida Articles of Incorporation are the document that creates your corporation. You file them online with the Division of Corporations on Sunbiz.org for $70, and once they’re approved (usually in 2-3 business days) the corporation legally exists and can open bank accounts, sign contracts and do business. The form itself is short. What trips peopleContinue reading “Florida Articles of Incorporation: How to File”

Your Florida corporation annual report is due by May 1 every year, and for a for-profit corporation it costs $150. File late and a $400 late fee is added. Keep ignoring it and the state administratively dissolves the corporation in September. Online, it’s a short form on Sunbiz.org. Every Florida corporation files one: for-profit, nonprofit,Continue reading “Florida Corporation Annual Report Requirements”

A Florida S corp election is a filing with the IRS, not the state: you submit Form 2553, and your LLC or corporation is taxed as an S corporation from then on. Done at the right profit level, it can save you thousands of dollars a year in self-employment tax. Done too early, it mostlyContinue reading “Florida S Corp: How to Elect S Corp Status”

Here’s how to incorporate in Florida: file Articles of Incorporation with the Division of Corporations on Sunbiz.org and pay the $70 filing fee. Online filings are usually processed in 2-3 business days. After that come the pieces the state never sees (bylaws, an organizational meeting, stock, an EIN and a bank account), and most peopleContinue reading “How to Incorporate in Florida: Step-by-Step Guide”