There are many types of business formations that you can use when setting up your real estate business. Each formation has its own pros and cons, but a corporation is a popular formation used by many investors. Florida is a state that is friendly to corporations and both individuals and groups of investors take advantage of the corporate tax breaks that are available by setting up a Florida corporation for real estate investing. If you plan to setup a corporation, you will benefit from knowing the requirements and how to avoid errors or mistakes during the corporation filing process.
Where to File Florida Corporation Forms
The Florida Department of State regulates all business filings. The filing process to start a Florida corporation begins with obtaining the appropriate forms. Just like in other states, no two corporations in Florida are allowed to have the same name or similar name to another business or entity. This helps the state keep accurate records and lessens the risk of legal disputes concerning name registrations.
There are two ways that you can complete an application to setup a Florida corporation. The first way is by downloading a Profit Articles of Incorporation form from the Department of State website. The second way is to request the forms by phone. Regardless of the filing method that you select, you will know that you are using updated forms and will avoid delays or errors during the filing process.
1. Articles of Incorporation Online: www.sunbiz.org
2. Division of Corporations Telephone: 850-245-6052
Completion of Incorporation Form and Filing Fee
It is important that you understand the requirements of the form before you submit the form to the Department of State. Incorrectly completed forms could be charged fees to correct the information. It is also helpful to obtain legal advice before creating a corporation for real estate. Since a corporation is recognized as an entity, there are guidelines that must be followed and annual reports that every corporation must file. There could be sales tax and other business licenses required to legally operate a real estate business.
Florida is one of the few states in the U.S. that has an extremely low incorporation fee. Florida is very generous to corporations that are structured to perform business in the state. The current fee structure for 2012 is as follows:
Filing Fee: $35.00
Designation of Registered Agent: $35.00
Certified Copy $8.75 (optional)
Certified Status Certificate: $8.75 (optional)
Dissolving a Florida Corporation
At some point in the future, you may want to dissolve a corporation that you set up for various reasons. It is natural to change business partners or strategies as your investment portfolio grows. The Florida statues, section 607.1404, detail the laws pertaining to dissolving a corporation. A form must be filed with the Department of State and the 2012 filing fee is $35.00. The process to dissolve corporations is less strict in Florida compared to other real estate cities that experience higher than average real estate growth each year.