under Florida State Law-
1)Is an employer oblogated to set up certain policies for their small buisness. As far as Vacation,Holiday,Sick,Personal leave policies or is it legal to verbally decide what to do as the year goes on?
2)What are the Laws when the holiday falls on a weekend? ( as this year they all seem to be falling on the weekend)
3) if an employee falls ill and has to be hospitalized and misses work what are the employees rights if the employer does not currently have set policies in place?

1)Is an employer oblogated to set up certain policies for their small buisness. As far as Vacation,Holiday,Sick,Personal leave policies or is it legal to verbally decide what to do as the year goes on? No. No employer of any size in any State is required to have policies or benefits such as you describe.

2)What are the Laws when the holiday falls on a weekend? ( as this year they all seem to be falling on the weekend) There are none.

3) if an employee falls ill and has to be hospitalized and misses work what are the employees rights if the employer does not currently have set policies in place? None, unless the Family and Medical Leave Act applies. (That's too lengthy to explain here but there is a ton of info on the FMLA available on the web.)

Assuming that you work for a private employer and not the Federal, state, or municipal government:

1)Is an employer oblogated to set up certain policies for their small buisness. As far as Vacation,Holiday,Sick,Personal leave policies or is it legal to verbally decide what to do as the year goes on?

No, they have no such obligation. There is no requirement that they have any policies at all regarding vacation, holiday sick or personal leave. It is entirely up to the company whether to offer such benefits and if so, how to offer them.

2)What are the Laws when the holiday falls on a weekend? ( as this year they all seem to be falling on the weekend)

There are no laws requiring an employer to do anything at all if a holiday falls on a weekend. It is entirely up to the employer whether to give a different day off, if so which day, or whether to disregard the holiday entirely.

3) if an employee falls ill and has to be hospitalized and misses work what are the employees rights if the employer does not currently have set policies in place?

That depends on the size of the company, the type and length of the illness, and a number of other situation specific factors.