In recent years, many people have chosen to start their small business in the city of Orlando. This is a great place for any business owner and it can help your company flourish. On the other hand, there are some drawbacks to starting a business in Orlando. One of the most common types of businesses in Florida is an LLC or a Limited Liability Company. This type of corporation means that you will be able to run your business independent of your own personal finances. While there are some pros to an LLC, there are also some cons. Read on to find out the pros and cons of starting your LLC in Orlando.
Pros of starting a business in Orlando
You can easily start an LLC in Orlando
In comparison to a corporation or even a regular small business, Limited Liability Companies are easier to start. You won’t have to deal with a lot of paperwork. Moreover, they are also less complicated to run. During your company meetings, you won’t need to take notes or make anything on the record. While you will need some documentation, it is far simpler to start your business in Orlando this way.
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Anonymity is a major advantage
When you start a small business as an individual, you would have to disclose your name to the public. On the other hand, when you start a corporation of this type, you will have the benefit of anonymity. All the members of your LLC will have the privacy they need. Depending on your product or services provided, this can be a useful advantage of starting a business in Orlando.
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You will have stability when starting a business in Orlando
Exactly because there will be more than one owner, the company will be more financially stable. In the case of one member deciding to leave the company for any reason, the business itself will not be in jeopardy. Moreover, in case of any personal financial problems, the business will not be liable. That is one advantage of an LLC over a small business with only one proprietor. Make sure that you are aware of all the steps to opening a business in Orlando, as you will have to go through a specific process.
There are many tax benefits
Florida is known for its appealing laws on taxation, and no wonder that Orlando is one of the best places in Florida for job seekers. For LLCs, there are no taxes for the company itself. Instead, employees only pay their federal income tax as individuals. Moreover, there is no personal income tax on the state level, so you will be able to save more money to invest in your business. Also, this type of business is able to offer many benefits to its employees, such as enrichment plans.
Cons of starting a business in Orlando
You will need initial investments when starting a business in Orlando
While they are not too difficult to start, it can cost more money to set up an LLC than a sole business. Among other expenses, it is advisable that you hire a lawyer to help you get started. Initial costs can be between $500 to more than a couple of thousand, depending on your business. Moreover, this is not where legal help stops. You will need to maintain a lawyer to consult you on the matters pertaining to running your business successfully.
Finally, it might not make financial sense for you to start an LLC over a sole business owner company. You might end up investing more money than you are earning. For this reason, it is a good idea that you consult with a lawyer before you make the decision. They can give you an accurate picture of what your business would look like as a Limited Liability Company. Alternatively, you can try your luck as a freelancer in Florida, because there are many options for those who like to work on their own and without commitment.
Complicated to transfer ownership
When you start your own business as an individual, you will have the option to leave it to your family members. This gives a great sense of security for those wishing to establish a family-owned business. With LLCs, however, the process of transfer is much more complicated. First, you need to have it written in your operating agreement that transfer of ownership is possible. Next, in most cases, you will need the approval of all members of the LLC. Meaning that, if you are not on good terms with everyone, big problems may arise. Before you go into this type of business, make sure that you are doing it with the people you trust. It is also necessary to establish some ground rules and communicate about every aspect of the business.
The law is uncertain
It is true that many people are turning to LLCs when thinking of starting a business in Orlando. For this reason, this type of company is becoming more and more popular. However, despite the rise in popularity, LLCs are still relatively new structures in Florida. This means that there are not many, or enough, laws and regulations in place to make all of them run smoothly. In case of any disputes between the members or with other companies, this does not bode well for you. You won’t be sure of the outcome for any legal proceedings, which contributes to a sense of unease and uncertainty within the company. Keep this in mind before you start a business in Orlando. Finally, make sure you do research on your own to learn how this type of business operates best.