Starting a business in Florida, particularly in the vibrant and growing Tampa Bay area, offers a world of opportunity. But before launching your venture, one of the most important legal decisions you’ll make is selecting the right business structure. Whether you’re an entrepreneur opening your first company or an experienced business owner expanding into a new market, the structure you choose will have long-term implications for taxes, liability, management, and operations.
At DR Law Center, attorney David Rummell, Esq., provides tailored legal counsel to help business owners in Florida make informed decisions when forming their companies. With a focus on Business Law and Personal Injury Law, and a strong commitment to personalized service, professionalism, and integrity, DR Law Center helps clients navigate business formation with clarity and confidence.
Here’s a breakdown of the most common business structures in Florida—LLC, S-Corp, and C-Corp—and how to choose the one that fits your goals.
Limited Liability Company (LLC)
What is it?
An LLC is a flexible business structure that combines elements of a corporation and a partnership. It provides limited liability protection for owners (called members) while offering pass-through taxation, meaning business income is reported on members’ tax returns.
Key Advantages:
- Simple to form and maintain
- No corporate-level taxes
- Fewer formalities than corporations
- Protection from personal liability for business debts
Best For:
Small to medium-sized businesses, real estate ventures, and startups looking for flexibility and protection without complex governance structures.
In Tampa Bay:
LLCs are a popular choice for professionals, consultants, and service-based businesses looking to limit liability while keeping administrative requirements manageable.
S-Corporation (S-Corp)
What is it?
An S-Corp is a tax classification, not a separate entity type, that allows a corporation (or eligible LLC) to pass corporate income, losses, deductions, and credits through to shareholders. Like an LLC, it avoids double taxation, but with more structure.
Key Advantages:
- Pass-through taxation with potential payroll tax savings
- Enhanced credibility with investors and partners
- Limited liability for shareholders
Important Considerations:
- Restrictions on the number and type of shareholders (100 max, all U.S. citizens or residents)
- Must adhere to corporate formalities (bylaws, meetings, etc.)
- More paperwork and oversight than an LLC
Best For:
Established small businesses seeking tax efficiency and planning to reinvest profits or pay out earnings in a structured way.
In Tampa Bay:
S-Corps appeal to professionals and growth-minded companies who want some of the benefits of a corporation while minimizing tax burdens.
C-Corporation (C-Corp)
What is it?
A C-Corp is a traditional corporation structure where the business is taxed separately from its owners. It allows for unlimited shareholders and is often used by companies planning to raise capital or go public.
Key Advantages:
- No restrictions on the number or type of shareholders
- Attractive to venture capital and institutional investors
- Allows for different classes of stock
Important Considerations:
- Subject to double taxation (corporate income and shareholder dividends)
- Requires strict compliance with corporate formalities
- More complex and costly to form and maintain
Best For:
Larger businesses, tech startups, or companies with plans to scale rapidly and attract significant outside investment.
In Tampa Bay:
C-Corps are common among corporations with high growth potential or those operating in regulated industries that require a formal corporate structure.
Choosing the Right Structure: Key Questions to Ask
There’s no one-size-fits-all answer. The best choice depends on your business goals, tax planning needs, liability concerns, and future vision.
Ask yourself:
- Do I want to keep things simple, or am I planning for complex growth?
- Will I be raising outside investment?
- What are my tax priorities—minimizing self-employment tax, or reinvesting profits?
- How many owners will there be, and what roles will they play?
Because the right decision can significantly impact your business’s legal and financial future, working with a knowledgeable attorney is essential.
Why Work with DR Law Center?
Attorney David Rummell, a cum laude graduate with a JD from Albany Law School and an advanced law degree in taxation from Boston University, brings a high level of expertise to business formation matters. At DR Law Center, we offer the sophistication of a large firm with the personal, attentive service of a boutique practice.
We dive deep into each client’s unique situation to help select and establish the business entity that best supports their long-term goals. Our flexible fee arrangements, referral-based approach, and high responsiveness ensure that clients receive effective, trusted legal counsel from the very start.
Whether you’re launching a new business in Tampa, St. Petersburg, Clearwater, or anywhere in Florida, DR Law Center can guide you through the legal formation process with confidence.
Contact DR Law Center Today
Choosing the right business structure is a critical first step for any Florida business. If you’re forming a business in the Tampa Bay area and need guidance on selecting between an LLC, S-Corp, or C-Corp, contact Attorney David Rummell at DR Law Center to schedule a consultation.
Call us at +1 (813) 951-1164 to get started.