Legal Considerations for Starting a Small Business in Florida

By Nicanor Gordon

Transitioning your side hustle to a full-fledged business is a daunting, but exciting time for any entrepreneur. It’s a landmark moment where you push all your figurative chips in. The transition to a business comes with certain legal requirements that you have to be on top of

Here are some legal considerations for anyone starting a small business in the United States Protect Intellectual Property

(IP)

Your branding, name and logo are all the lifeblood of your business As soon as possible, look into copyrights, patents, and trademarks It’s easier now than ever to fall victim to copycats or business impersonation, especially if your business is online IP protection laws exist on a national and state level

Establish Written Employment Policies

Employees are the backbone of any business, but if your business has any proprietary techniques that are trade secrets, certain policies need to be enacted to protect these techniques during inevitable employee turnover To combat this, you should look into implementing Non-Disclosure Agreements (NDAs) and Non-Competition Policies When starting a business in Florida, it's essential to familiarize yourself with state and federal employment laws These laws cover areas such as minimum wage, overtime, discrimination, worker's compensation, and hiring practices

Additionally, businesses must verify the eligibility of their employees to work in the United States by completing Form I-9 Complying with employment laws is vital to ensure a fair and inclusive work environment while avoiding legal complications

Registering under the Correct Entity Structure

The legal entity structure that your business falls under will determine many aspects of not only its day-to-day existence, but also how the business is taxed and what business loans can be procured Take time to review the different types of business structures, such as Sole Proprietorship, LLC, Corporations, Partnerships and Nonprofits, to decide what works best for you

Taxes and Financial Obligations

Understanding the tax obligations associated with running a business in Florida is crucial The state does not impose a personal income tax, but businesses are subject to various taxes, including sales tax, corporate income tax (for C corporations), and employer taxes Depending on your business structure, you may also have to pay self-employment taxes Consulting with a tax professional or accountant can help you navigate the complexities of tax obligations and ensure compliance

Safeguard Data

In an increasingly digital world, the privacy of your customers and employees' data is incredibly important It’s crucial to be upfront about what data you ’ re recording, and outline the privacy policies in place to protect that data Sensitive information such as email addresses, home addresses, demographics, logins, etc need to be protected If you ’ re in the business of selling customer information to other companies (for advertisement purposes, etc ) then you also need to be upfront about that, usually in a terms and conditions statement that the customer will be required to sign off on

Zoning and Regulatory Compliance

Before leasing or purchasing a commercial space for your business, ensure that the property is zoned appropriately for your intended use Local zoning regulations dictate where and how certain businesses can operate within specific areas Understanding zoning laws can help you avoid costly setbacks or conflicts with local authorities

Business Banking Accounts

Having a separate account with business finances distinct from your own is important not just for keeping track of expenses and revenue, but also decreases the risk of personal liability if an audit were to occur

Consult a professional

Business law is complicated and, on the surface, unapproachable To prevent mistakes or run-ins with the law, a consulting professional will guide you on the right path preventing potentially costly mistakes

Scan