The corporation business structure offers its owners a number of benefits. If you are looking to form a Florida Corporation or S-Corporation, there are a few steps that you must follow in order to achieve a successful formation. An initial step in this process is choosing an appropriate name for your corporation. The name must be unique from other active businesses in the state and also must include a corporation identifier in the name. In order to be certain you have chosen a name that is unique in the state, conduct an entity search on the Florida Division of Corporations website.
Naming Your Florida Corporation
Before you file your articles of incorporation to officially form your corporation, you will need to choose a name that is unique from all other Florida businesses. This means that your name should not be easily confusable with other established businesses in Florida. Additionally, your name will need to include a corporation identifier, such as “Corp.”, “Inc.” or “Corporation”. To ensure that your chosen corporation name is available, you will want to conduct an entity name search in the Florida Division of Corporations database.
Conducting a Florida Corporation Name Search
In order to perform a name search for your Florida corporation, visit the Florida Division of Corporations site here:
http://search.sunbiz.org/Inquiry/CorporationSearch/ByName.
You will notice that there are several information options available by which you can conduct your search, such as:
- Business Entity Name
- Registered Agent Name
- Officer Name
- Trademark Name
- Trademark Owner Name
- Employment Insurance Number (EIN)
- Document Number
- Street Address
In this case, you will be searching by entity name. However, you may find the search tool useful in the future for various informational needs, whether related to your own business or other businesses in the state.
Benefits of the Corporation Structure
Limited Liability: The corporation structure offers its owners limited liability protection. This means that corporate shareholders cannot be found personally liable for any debts incurred by the business. This is in contrast to other business structures, such as sole-proprietorships or general partnerships, in which there is no legal separation between the owner and the business and therefore owners can be found personally liable for business debts.
Tax Advantages: Corporations enjoy several tax advantages, such as the ability to deduct health insurance premiums, self-employment tax savings, Medicare taxes, workers compensation, and deducting other expenses like life insurance. Consult an accountant for the full list of tax benefits that your corporation can enjoy.
Unlimited Life: When you form a corporation, its lifespan does not depend on its owners. The corporation structure possesses the ability to go on indefinitely. This means that in the event that owners pass away or sell their interests, the corporation can continue on unaffected.
Establishing Credibility: In many ways, Florida Corporations enjoy a greater credibility thanks to their longstanding history of stability and success in the business world. This can benefit businesses with potential customers, vendors, and partners. Most banks prefer providing business loans to borrowers that utilize an incorporated business structure. Additionally, it is easier to raise capital through the sale of stock.
