What You Need to Know About Formation & Compliance
Launching a new business is an exciting step—but the decisions you make early on can have long-term legal and financial consequences. Whether you’re opening your first LLC or expanding into a multi-member corporation, it’s important to understand your options and what’s legally required to stay compliant in Florida.
At Llorens Law, PLLC, we work with entrepreneurs and business owners to help them start strong, stay protected, and meet their ongoing obligations under state and federal law.
Choosing the Right Business Structure
One of the first decisions you’ll face is how to structure your business. Each type of entity has different implications for taxes, liability, and operations. Here are the most common options in Florida:
LLC (Limited Liability Company): Offers flexibility and protects personal assets from business liabilities.
Corporation (S-Corp or C-Corp): Ideal for businesses seeking outside investment or stock issuance, but with more formalities.
Sole Proprietorship or Partnership: Simple to start, but doesn’t offer liability protection.
Professional Association or LLP: Suitable for licensed professionals like doctors, lawyers, or accountants.
Choosing the right entity depends on your goals, how many people are involved, and how you want to be taxed.
Florida Formation Requirements
To legally form a business in Florida, you’ll typically need to:
File formation documents with the Florida Division of Corporations
Choose a unique business name
Designate a registered agent
Obtain an EIN (Employer Identification Number) from the IRS
Draft governing documents (like an operating agreement or bylaws)
Register for any required licenses or local business tax receipts
Many businesses also choose to trademark their name, file DBAs (fictitious names), or draft partnership agreements depending on the nature of the company.
Maintaining Ongoing Compliance
Once your business is up and running, staying compliant is key to protecting your status and avoiding penalties. Florida businesses are typically required to:
File an Annual Report with the Florida Division of Corporations
Keep corporate records and meeting minutes (for corporations)
Update agreements when ownership or structure changes
Maintain proper tax and licensing registrations
Follow employment and payroll laws if hiring staff
Failing to stay compliant can lead to fines, personal liability, or even dissolution of the business.
When to Involve a Lawyer
While it’s possible to file basic paperwork on your own, many business owners don’t realize how important it is to have proper agreements in place—especially when working with partners or investors. An attorney can help you:
Prevent internal disputes by clearly outlining roles, responsibilities, and ownership
Avoid personal liability by following the right formalities
Customize agreements to match your specific needs—not just fill in a template