This quick guide will help you understand what a Florida Business License really is and whether you (or your business) need one. But keep in mind this is only the beginning. Starting a business in Florida is relatively easy and inexpensive, but you will need to navigate state and local regulations to run a successful enterprise. Still got questions? Don’t worry, we’ve got answers.
WHAT IS A FLORIDA BUSINESS LICENSE?
There are certain regulated professions and activities for which you’ll need a special license. The State of Florida has identified these industries and has appointed different State Agencies to oversee their licensing.
There are two main licensing “shops” in Florida: (1) the Department of Business & Professional Regulation and (2) the Department of Agriculture and Consumer Services.
Now, some industries obviously require a Florida Business License. Say, for example, accountants or real estate agents. But sometimes it’s not so obvious. For example, if your new business will provide fiduciary or trust services (even in a non-depository capacity), you’ll need to register with the Florida Office of Financial Regulation.
For this reason, you’ll need to examine your business plan to determine whether your activities could be considered a regulated profession. In addition, even if your enterprise doesn’t require a Florida Business License, you’ll need to ensure that your employees or contractors who do need a license, indeed have one.
To determine if you need a license, first check with the Department of Business & Professional Regulation (here) and the Department of Agriculture and Consumer Services (here). If you don’t see your business activity listed there, you can also check a comprehensive list of State Agencies.
Once you determine which State Agency regulates your profession, follow their instructions to obtain your license.
YOUR FLORIDA BUSINESS LICENSE AND INSURANCE
Always determine whether you (as an individual) or your company (as an entity) should request the license. This is an important distinction. You see, in Florida you can run your business as an LLC, a corporation, a sole proprietorship, etc. The choice is really yours. But you must never forget to structure your business to protect both yourself (personally) and your company (and its assets). For that reason, you’ll need to review all insurance policies and “additional insured” entities to maximize coverage.
FAMILY MATTERS
Family businesses are run differently. We understand that formalities are often overlooked and roles are commonly interchanged. But it is crucial to maintain certain customs when you offer regulated services to the public.
For example, some startups choose to incorporate as “professional service corporations” (PSCs). It’s a practical choice for a variety of reasons but clients often overlook one critical factor. Unlicensed individuals are prohibited from owning shares in PSCs. For this reason, licensing requirements are a key player in your business structure.
We also recommend that you think critically about how you will accommodate risk. Especially in regulated industries with strict insurance requirements. To that end, having the entire family as shareholders may be a risky proposition. After all, there are easier (safer) ways to ensure business continuity. You should always consider how you will protect what you built to avoid unnecessary risk.
Still got questions?