- Incorporation (S Corp, C Corp)
- LLC (Limited Liability Company)
- Sole Proprietorship
- LP (Limited Partnership)
- LLP (Limited Liability Partnership)
- Operating Agreements
- Bylaws & Resolutions
- Annual Reports
- Federal Tax ID (EIN)
- State Tax ID
- Corporate Amendments
- Foreign Qualification
- Corporate Name Change
- DBA / Fictitious Name
- Personal liability protection
- Lower tax rate from profits spread between owners and corporation
- Easier to seek outside investment
A limited liability company in Florida is a flexible entity that offers several benefits over filing as a corporation. Forming an LLC limits the liability of managers and managing members. Organizational changes, obligations, voting powers, structure, distribution rights and more can all be made in the operating agreement. A limited liability company can operate more informally and flexibly than a corporation, and similar to S corporation tax status, does not pay taxes themselves.
- No corporate tax – profits passed directly to owners
- Same liability protection as a corporation
- Less corporate formalities
A fictitious name or DBA (Doing Business As) is filed if you will be doing business as another name other than your corporation, LLC, partnership or personal name. A fictitious name in Florida is only a filing to say you are doing business with that name.
- Informal business structure
- Grants status to legally conduct business under trade name
- Minimal maintenance required
Corporations are formed in 2 to 5 business days with no expediting fees!
Also known as the Tax Identification Number (TIN), Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number, the EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to business entities operating in the United States for the purposes of identification. When the number is used for identification rather than employment tax reporting, it is usually referred to as a TIN, and when used for the purposes of reporting employment taxes, it is usually referred to as an EIN. This article will use the latter term.
Comparison to Social Security Numbers
Similar in purpose to the Social Security Number assigned to individuals, EINs are used by employers, sole proprietors, corporations, partnerships, non-profit organizations, trusts and estates, government agencies, certain individuals and other business entities. The IRS uses this number to identify taxpayers that are required to file various business tax returns. Individuals who are employers may choose to either obtain an EIN or use their Social Security Number for the purpose of reporting taxes withheld on behalf of their employees. Contrary to some misconceptions, credit bureaus and credit issuers can tell the difference between SSN and EIN Numbers. SSN Numbers can be validated as to origin and state /year of issuance. The credit bureaus and issuers are highly trained in fraud detection, and increasingly sophisticated algorithms and protections are used. This is why the EIN is not considered sensitive information, and is freely distributed by many businesses by way of publications and the internet.
Every organization must have an employer identification number, even if it will not have employees. The employer identification number is a unique number that identifies the organization to the Internal Revenue Service.
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity. Generally, businesses need an EIN.
EINs do not expire. Once an EIN has been issued to an entity, it will not be reissued.
What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has a range of 70-88 in the fourth and fifth digit. Effective April 12, 2011, the range was extended to include 90-92 and 94-99 in the fourth and fifth digit, example 9XX-90-XXXX.
IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA).
ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code.
Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.
What is an ITIN used for?
ITINs are for federal tax reporting only, and are not intended to serve any other purpose. IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security Numbers (SSNs).
An ITIN does not authorize work in the U.S. or provide eligibility for Social Security benefits or the Earned Income Tax Credit.
Who needs an ITIN?
IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty needs an ITIN.
Other examples of individuals who need ITINs include:
- A nonresident alien required to file a U.S. tax return
- A U.S. resident alien (based on days present in the United States) filing a U.S. tax return
- A dependent or spouse of a U.S. citizen/resident alien
- A dependent or spouse of a nonresident alien visa holder