If you are considering starting a new business in Florida or if you are considering converting your sole proprietorship into a limited liability company (LLC) or a partnership, you may be wondering:
“When is the best time to form a new business?”
This is a question that has two different answers. In this post, our experienced Clearwater business formation attorney explains why there are benefits to forming your LLC or partnership at the beginning of the year, but why you always need to consider your individual circumstances.
Why January is the Best Month to Form a Business in Florida
- There Might Be Tax Benefits
For some businesses, there can be some tax advantages to forming at the beginning of the year. If there are tax advantages to operating as an LLC or partnership, you want to make sure that you have the best business structure as early in the year as possible. Whether you are forming an entirely new enterprise, or converting your sole proprietorship into an LLC or a partnership, you should consult with a Florida business law attorney about tax issues.
- It Will Simplify Your Paperwork
You can also simplify some of your paperwork by filing to start a new business in January. By starting a new year fresh, you will not have to file two types of business paperwork in the same calendar year. Further, it should be noted that January is the busiest time of year for forming a business in Florida, so you will be able to avoid potential delays by getting your forms submitted as soon as possible.
- You Get a Fresh Start
Finally, for many entrepreneurs, there are major psychological benefits that come with forming your business in January. A new year provides an opportunity to get a fresh start. It is the best time of year to take action to put your goals into place.
The Best Time to Form a Business Depends on Your Individual Circumstances
While January 1st is the ideal date to form a business, the best time to start a business is when you are truly ready. The date on the calendar matters less than do your individual circumstances. If you feel like you are ready to form an LLC or a partnership, you should take action. As forming a new business can be complex, it is best to seek guidance from a qualified Florida business law attorney. Your lawyer will be able to review your unique circumstances and help you create a business structure that best protects your legal rights and financial interests.