Steps to Start Home Based Business in Florida
You have a great business idea but are unsure of how to start a home business in Florida to launch that idea. It is important to understand that there are certain processes that you will need to consider for launching your business from home successfully. So, let’s take a look at the key areas that you need to focus on to launch your home-based business ideas in Florida.
1. Prepare your home based business plan
If you want to know how to start a home business in Florida then the first step would be to create a business plan. A strong business plan will let you focus on the market, industry, target audience, marketing plan, revenue, and even competition. In order to start a home-based business in Florida, there are specific components that should be included in your business plan and they are:
- Executive summary of your home-based business
- Research on your launch market
- Existing competition
- Future prediction of the market
- Revenue generation model
- Target audience
- Advertising, marketing and sales strategy
- Startup Expenses
- Operating plan
2. Check zoning laws and regulations for your home based business
You can start a home-based business in Florida in any industry but one of the key areas to focus on is zoning. Zoning laws and regulations will vary according to the city or county your business is operating from and lack of compliance with the same can often lead to penalties. In fact, you will be able to obtain home business licenses in Florida only if you are compliant with the zoning regulation in your jurisdiction. The importance of zoning lies in the fact that different districts have been divided into zones and each zoning district specifies where different activities can take place like industrial, commercial, and recreational among others.
For example: If you are planning to start a home-based business in Florida and are located in Miami-Dade County then you will need to check their zoning interactive map to locate your home. According to Miami – Dade County, Florida – Code of Ordinances, Chapter 33 – ZONING, Section 33-25, home occupation is allowed in the residential districts although you will be required to apply for and obtain an annual ‘certificate of use’ from the Zoning Permits Section. There is a list of Permitted and Prohibited Home Occupations though, which you need to check prior to applying for the permit.
3. Register your business with Florida Department of State
The first step towards transforming your home-based business ideas in Florida to a legal operational business entity is by registering the company. The registration documents, forms, and fees will be different based on the business structure. If you form a limited liability company then you will have to file “Articles of Organization” with the Division of Corporations along with a filing fee of $125. Similarly, if you form a general partnership then you will be required to file a “Partnership Registration Statement” along with a filing fee of $50. If you require help regarding how to start a home business in Florida then we at IncParadise can assist you with the process of registering your new business in the state.
Register your business to launch your home-based business idea in Florida!
4. Check if you need to obtain an EIN
Employer Identification Number (EIN) is required by businesses operating within the US or Florida. This is a unique 9-digit number also known as the Federal Employer Identification Number (FEIN) and is assigned to businesses by the Internal Revenue Service (IRS). Your requirement for an EIN will depend on the form of business you operate. For example, a corporation will need to apply for a tax ID number although in a sole proprietorship; you can file taxes using your social security number (SSN). At any given point in time, as a sole proprietorship business, if you hire employees then you will have to apply for the Employer Identification Number.
5. Register for taxes
If you start a home-based business in Florida then you may be required to register for taxes. The type of taxes you have to file will depend entirely on:
Although Florida does not impose any state income taxes, it does have corporate tax and sales and use tax apart from other state and local taxes.
6. Obtain the necessary licenses and permits
Once you have applied for registration of your home-based startup, the next step is to apply for and obtain home business licenses in Florida. You will not be able to operate your business in the state without obtaining the required licenses or permits. Business licenses and permits in the state can be categorized under the following:
- General Business License – The general business license is known as the “Business Tax Receipt” and is issued by the county in which your home business is located. This type of license will be applicable if you start a home-based business in Florida that focuses on selling of services or products (goods) in the jurisdiction or county your business is based.
- Licenses for specific industries or profession – This type of home business licenses in Florida will be required if your industry or profession falls in the regulated categories. Such licenses will be issued by the Florida Department of Business and Professional Regulation (DBPR).
Once you start a home-based business in Florida and become operational after obtaining the required licenses; they have to be renewed annually. You can also check our specialized Business License Research Report service as it will provide you information pertaining to Florida licensing requirements including license fees and documents to be filed.