Setting Up a Manufacturing Relationship in Florida

In Florida, you can choose from several business structures including sole proprietorship, partnership, limited liability company (LLC), or corporation. Most manufacturing businesses opt for an LLC or corporation due to liability protection. Florida has favorable business laws with no state income tax, making S-corporations or LLCs particularly attractive. Consider consulting with a business attorney to determine which structure best suits your specific manufacturing operation, tax situation, and growth plans.

Manufacturing businesses in Florida typically require several permits and licenses, including: 1) Business license from your local city/county, 2) Sales tax permit from the Florida Department of Revenue, 3) Environmental permits from the Florida Department of Environmental Protection if your operations involve waste, emissions, or water discharge, 4) Specialized permits depending on your product (food, beverages, chemicals, etc.), and 5) Federal permits if applicable to your industry. Contact your local county office and the Florida Department of Business and Professional Regulation for specific requirements based on your manufacturing type.

A comprehensive Florida manufacturing agreement should include: 1) Detailed specifications for products/components, 2) Quality standards and testing procedures, 3) Delivery schedules and logistics arrangements, 4) Pricing, payment terms, and potential price adjustment mechanisms, 5) Intellectual property protections, 6) Confidentiality provisions, 7) Warranties and indemnification clauses, 8) Term and termination conditions, 9) Dispute resolution procedures (Florida courts or arbitration), and 10) Force majeure provisions. Having an attorney review your agreement is highly recommended to ensure it complies with Florida law and adequately protects your interests.

Florida manufacturing employers must comply with both federal and state employment laws. Key considerations include: 1) Florida follows federal minimum wage standards, 2) Florida is a 'right-to-work' state, meaning employees cannot be required to join unions, 3) Workers' compensation insurance is mandatory for manufacturing businesses with 4+ employees, 4) Florida has no state-specific overtime laws (federal FLSA rules apply), 5) Employers must verify employment eligibility and report new hires, and 6) Florida has specific safety regulations for manufacturing facilities. Consider working with an HR professional familiar with Florida employment law to ensure compliance.

To protect intellectual property in Florida manufacturing relationships: 1) Use robust non-disclosure agreements (NDAs) before sharing sensitive information, 2) Include detailed IP ownership and licensing provisions in all contracts, 3) Register trademarks, patents, and copyrights as appropriate, 4) Implement physical and digital security measures at manufacturing facilities, 5) Consider filing for trade secret protection under Florida's Uniform Trade Secrets Act, 6) Include non-compete clauses where appropriate (note that Florida courts generally enforce reasonable non-competes), and 7) Conduct regular IP audits. An intellectual property attorney can help develop a comprehensive protection strategy tailored to your manufacturing business.

Florida offers a favorable tax environment for manufacturers, including: 1) No state income tax, 2) Sales tax exemptions for manufacturing equipment and machinery used in production, 3) Potential property tax exemptions for manufacturing facilities in certain counties, 4) Tax credits for businesses in enterprise zones or that create jobs, 5) Research and development tax credits for qualifying activities, and 6) Exemptions for certain raw materials used in manufacturing. However, you'll still need to collect sales tax on finished products sold in Florida unless they're exempt. Consult with a Florida tax professional to maximize available incentives and ensure compliance with all filing requirements.

Key liability concerns for Florida manufacturers include: 1) Product liability (Florida follows strict liability principles for defective products), 2) Workplace safety and OSHA compliance, 3) Environmental liability for waste disposal and emissions, 4) Contractual liability with suppliers and customers, 5) Employment-related liabilities, and 6) Premises liability. To mitigate these risks: obtain comprehensive insurance coverage (general liability, product liability, workers' compensation), implement quality control procedures, maintain detailed documentation, use appropriate warning labels, and consider liability limitations in contracts where legally permissible. A risk management consultant familiar with Florida manufacturing can help develop a comprehensive protection strategy.

Florida has stringent environmental regulations affecting manufacturers, including: 1) Air quality permits for operations that emit pollutants, 2) Wastewater discharge permits through the National Pollutant Discharge Elimination System, 3) Hazardous waste management requirements under both federal RCRA and Florida DEP regulations, 4) Special regulations for facilities near sensitive ecosystems like wetlands or coastal areas, 5) Chemical storage and reporting requirements, and 6) Environmental impact assessments for new facilities. The Florida Department of Environmental Protection (DEP) oversees most environmental compliance. Consider consulting with an environmental compliance specialist early in your planning process to avoid costly violations.

Florida product liability laws hold manufacturers responsible for injuries caused by defective products under several theories: 1) Strict liability (no need to prove negligence if the product is defective), 2) Negligence, 3) Breach of warranty, and 4) Failure to warn. Florida has a 4-year statute of limitations for product liability claims and follows a comparative fault system, reducing damages by the percentage of the plaintiff's fault. Florida also has a 12-year statute of repose for most products, barring claims for products over 12 years old. To protect your business: maintain quality control, provide adequate warnings, keep detailed records, and obtain sufficient product liability insurance.