Opening Your Florida Business

Some of us here on staff at the magazine have had the challenging

experiences of preparing to open a business. To those unfamiliar with the

way we do things here, it's probably not the same way as "there" (translate:

up north). Here's a very basic overview of what you need to know in advance

to avoid unwanted surprises.

Labor is fairly cheap as are housing and overhead costs such as rent and

utilities (except water, which is surprisingly expensive). Florida is a

right to work state, that is to say union membership cannot be required for

employment.

The Details

The first steps involve obtaining a tax identification number, a state sales

number, a state unemployment number, and federal employer identification

number. You also need to consult your accountant as to which taxes apply to

your business (particularly sales tax). Due to space constraints, we have

skipped over the subject of business taxes. Be assured they exist, and learn

about what they are. Also, spend some time researching any special

conditions or contingencies, such as beverage licenses, which impose their

own set of rules and regulations.

A critical issue for any new business is financing. It's not uncommon in

this area for former business owners from the north to relocate here and

start another business. Often these business people have capital from either

the sale of their business or the sale of their northern home. If this is

not your case, go see your local economic development agency for sources on

funding. Banks won't touch businesses until they can show a two-year track

record. And it's a good idea to not personally guarantee any bank loans for

your business.

Hiring an attorney to help set up the corporation is also a wise step. Be

leery of offers to form a Florida corporation by mail. If you are forming a

partnership, no matter how long you've known your partner, make legal

provisions in the event of an eventual parting of the ways. Try to think of

everything that can go wrong, then plan for it.

Likely you have ascertained that there is a need for your business. You know

there may be other companies like yours in the community, and you have plans

in place to distinguish your new business from other established businesses.

This is where your marketing plan comes in. And you have, of course, been

reading Marketing Matters in each issue of this magazine, so you know the

basics on how to get free advertising and how to get the media to notice

your business. (If you missed those columns, e-mail me, and I'll send them

to you.)

Register and Get Your Licenses

Register the business on a state and local level; some professions are

required to register with the Department of Business and Professional

Regulation. Business-related regulatory functions affect hotels and

restaurants, real estate, lands sales, pari-mutuel wagering and others, so

check on this for your business.

If a business is not incorporated or will use an assumed name, the

Fictitious Name Act applies. The name must be registered and advertised in

the local newspaper.

Depending upon your occupation, you may need to get the proper trade

licensing. Contractor tests are vigorous here and take some time to obtain.

Some counties require a competency card over and above the state trade

license, which also requires a test.

You will at some point be dealing with local government agencies. Here

again, what most people don't tell you is that, in many cases, each of the

steps is contingent upon the next. In other words, you can't get your

occupational license until you are properly zoned, and sometimes you can't

get licensure for your business until you have an occupational license. So

patience is key throughout the process.

Occupational licenses allow you do business in that area. Collier County is

trying to dedicate these fees toward economic diversification. If you are

doing business within city limits, you'll need an occupational license in

both city and county. But zoning comes first. Before you march down to the

county offices to apply, you'll need to make sure site is properly zoned.

Occupational licenses will not be issued unless you pass zoning. If a zoning

certificate is denied, usually the site must be improved. Then you go back

to the county to try again. If it is approved, a planner will sign the

occupational license, and the form, along with the approved zoning

certificate, goes back to the occupational licensing section (of course,

this is usually not where the examiner is located). Then the entire package

goes to the tax collector's office accompanied by the applicable state

licenses or permits, where the fee is paid and the license issued.

If you

are within city limits, a similar type of procedure must be followed, albeit

an easier one since you already have the county license. This license must

be displayed in plain sight.

Signage is another thing. I know a business owner who had a sign painted

directly on the building, and the county made him paint over it. In Lee

County, signage cannot exceed 10 percent of the wall, and if it does you

will be called into a hearing unless you comply. Any type of permanent sign

must be permitted, and usually the sign company includes the permit fee in

their installation charges.

We highly recommend that if you are thinking of opening a business here that

you contact the local economic development agencies, which are a great

resource for comprehensive information.

General Information

* Enterprise Florida (407) 425-5313

* Collier County Economic

Development Council 263-8989

* Lee County Economic Development Office 338-3161

* Occupational License

Collier 643-8477

Naples 434-4717

Lee 339-6002

Ft. Myers 332-6762

* Dept. of Business and Professional Regulations 278-7195

* Fictitious Name Registration

(904) 487-6058

* State Sales Tax Authority

(904) 488-6387