How to Start a Solo Home-based Business in Florida

I talk to so many dreamers who want to start a business, but just think it is too hard or complicated. Something that I fully believe is that not many things worth having in life come easy and if you want to start a business, you have to just do it. No matter what it is. Whether it’s getting up and going to work, or brushing your teeth, or starting a business. You have to just do it. You can dream about it and talk about it forever, but you can’t get anywhere unless you just do it.

So your next question is….

How Do I Start My Business in Florida?

Disclaimer: I am not an attorney or accountant. This information should not be taken as legal or financial advise, only informational insight I am sharing from my own experience. 

Just Do It!

The truth is, you can simply start any business or side hustle you want at any time. If you start to get clients and sales, get it registered! When you start like this, you are considered a sole proprietor operating officially under your own name. This is a great option if you are not sure and don’t want to spend any money or make anything official until you test the waters.

Be wary, you are not permitted to do business under a name other than your own in Florida unless it is registered.

So, if you want to continue to operate, but make it official under a business name, you basically have 2 great choices as a solo business owner in Florida.

#1 – Register a Fictitious Name

The first option for starting a business in Florida as a solo entrepreneur is to register a fictitious name with the State of Florida.

A Fictitious Name is simply a DBA (doing business as) that let’s you officially operate under a name other than your own. You are still considered a sole proprietor, but now you have a business name.

This is the most popular choice because it is easy and allows you to use an official business name at a minimum cost and minimum hassle.

Name: You should search the Sunbiz  Fictitious names database to look for the name you want to use. However, a fictitious name is not protected. Others can register a same or similar name.

DIY Cost: $50 to register then $50 every 5 years to renew (renewals are on December 31st of the 5th year).

Additional Cost: Florida has a weird ancient (way before the public internet and virtual businesses) requirement that you have to publically announce your intention to use the name in a printed newspaper in the county in which you intend to do business.

This is a popular question I get asked about why and how to do this. Why, is because Florida lawmakers haven’t changed this ancient law (Chapter 50, Florida Statutes) and even if it annoys us, it is still required (until we pressure our representatives to make a change), so we have to just do it. And How, is simply search “Fictitious name announcement in [your county]” and find newspapers who offer this. The price ranges from $10-$50 on searches I have done. It’s easy enough, but just another tick on the to-do list. It’s important to note that there is no proof of advertisement required so no evidence is required, however, you as the applicant, certify the name has been advertised when you sign. I say, keep it legal and do it.

Liabilities and Taxes: All liabilities and assets of the company are shared with you personally under this designation and you file only personal taxes that claim the profits of the business.

 

#2 – Register an LLC

The Second is to register an LLC with the State of Florida. I have a complete step by step guide to registering your LLC yourself in Florida here. And I also break down my top 3 choices for LLC registration services here if you want to have a professional do it for you (and hint, it doesn’t cost that much!)

An LLC stands for “Limited Liability Company,” meaning it allows a separation in terms of liability of the business from your personal assets. So if someone sues the company, your personal stuff is protected.

Name: Do a search on the Sunbiz  website and make sure no one has the same name you want to register. The LLC name is somewhat protected as no one can register a similar business with the same name.

DIY Cost: $125 to register and $138.50 every year to file an annual report.

Additional Costs: When you register you LLC, you can choose to tax it as an S-corp which allows you to split the profits into 2 areas, salary and profits. This can save money on taxes but also costs more money to file taxes as you have to do a separate LLC tax filing. This is optional and should be decided based on your situation. See: How are LLCs Taxed in Florida

LLC vs Ficticious Name Registration in Florida for a Home-based Business

The liability protection is the primary reason for registering an LLC over a Ficticious name in Florida. A Ficticious name (DBA or Doing Buisness As name) allows you to do business as a name other than your real name, but doesn’t provide a separation from your personal assets. An LLC provides an entity that is separate from you personally, so you are protected from any business issues.

If you are small and starting as a side-hustle without much income, and want to take your idea to market, a Ficticious Name is a good idea.

If you are setting up a business where liability might be a problem, someone might sue you for some reason, or you will be making this your full time job, an LLC might be the better choice.

Again, I can only give a broad insight without knowing more about your business type or situation.

Combining LLC and DBA’s

Another option is to register an LLC as your corporate name and register DBAs for various segments of your business. For example, if you sell a product, manage a blog or youtube business, and have affiliate marketing offerings on your blogs and vlogs, you might want to set up XYZ, LLC and register a ficticious names XYZ [product name] for your product, XYZ media for you blog and marketing, etc, to keep them separate while using the names across the various markets.

 

Other Considerations to Start Your Home-based Business

Tax ID – the EIN (Employer Identification Number)

An EIN is required by the IRS for LLCs and is optional for Fictitious Name Registrations. If you want to open a bank or get any kinds of funding, it is best to get one for your Fictitious Name to keep the finances separate. It also may be required for an licenses or permits you may need. You can apply for your EIN here

Licenses and Permits

Local governments have different requirements for working at home.  See our Local County Guides here and check the Florida Department of Business and Professional Regulation website for any licenses and permits that may be required for your industry.

Work-Life Balance

When starting up a home-based business, your life and your business will be merged. While some people are successful in keeping them separate and setting good boundaries and time schedules for work, most people I have met, including myself, have difficulties always keeping them separate.

And the truth is, if you are building a business on something you are passionate about, which most home-based businesses are, it is already merged.

So I think its important to be mindful of your time and keep your life balanced in order to prevent burnout.

Ongoing Education

Always be learning, that’s my motto. As an entrepreneur and small business owner, it is important to get the training you need to be the best at managing a company. Find the courses you need to know, courses for growth and leadership, and get inspired to stay on track.

 

Get Started and Register Your Business

The process to do the registration yourself takes about a half a day to a full day to complete in total time. These days when I register a new LLC, I use a service. Their prices are low and they do all the work! Plus, you can have them act as the registered agent, which is another benefit. How much is your time worth?

Choose a LLC Registered Agent Service to Make it Easy (and it’s super affordable!)

As an entrepreneur, your time is valuable and hiring an online service to do all this for you takes away the stress and makes the legalities of maintaining your business status worry free.

If you have decided to register an LLC yourself, let’s get started:

Step by Step Registration of an LLC in Florida

 

 

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About the author

Patti Jewel

Patti Jewel, aka Beach Jewel and Florida Jewel, has been a life-long Florida resident, beach lover, mom to 4 amazing children, and someone who sees the glass as both half empty and half full but in either case, always wants to fill it up.