The
Florida limited liability company is the entity of choice
for most persons who are starting a business in Florida.
This is because it was specifically designed to provide the
benefits of other legal entities but not have the
disadvantages of those same entities.
This
Article summarizes the major benefits and advantages:
Limited
Liability Protection
The most common reason for forming a
Florida LLC for operating a business is to protect its
owners from being personally liable for business debts,
obligations and lawsuits. This is the same
protection afforded by corporations. Without the use
of an asset protection vehicle, a business is known as a
sole proprietorship or general partnership and owners are
completely at risk.
Business ownership is a wonderful thing
that can bring great rewards of financial and time freedom
as well as personal satisfaction. But it is not
without risks. Small business lawsuits are an epidemic
in the United States with millions of lawsuits filed every
year.
And, as your business becomes more
successful, the chances of lawsuits rise dramatically.
Protect yourself from inception by operating through a Fla
LLC.
Tax
Benefits and Choices
Both
the Federal government and the Florida Department of Revenue
have granted the limited liability company the best tax
status over other entities. For federal income tax
purposes, a Florida LLC by default automatically qualifies
for a single layer of taxation. Profits and losses are
passed through to the members and not taxed at the entity
level.
If for
some reason, a corporate tax structure is more beneficial,
an LLC can elect corporate taxation so it has more choices
and options than any other legal entity. However,
given that Florida has no individual income tax but imposes
a corporate state tax, most individual owners of a Florida
LLC will opt for the default pass through structure.
Simple to
Maintain
A
Florida LLC is not subject to legally required governance
formalities and meetings. This is a great benefit for
the small business which may not need to hold meetings and
raise every business decision to a governing body.
Now, it is recommended that every entity including LLCs
maintain a minimal level of paperwork to evidence its
existence but the same detail of formalities required of
other entities is not mandated.
Most
Flexible Legal Entity
The
Florida LLC laws allow for the owners of an entity to
determine what management structure and operational rules it
needs for its particular business. Because every
business can differ significantly and have different
requirements imposed on it by owners, investors, banks,
customers, and its industry, the flexibility granted to the
Fla LLC is a huge benefit.
In
summary, you can run your business the way you want.
Professional Image
Having
a legal entity as your operating business goes a long way
when it comes to business credibility. The public is
very suspect of businesses given the number of scams and fly
by night purported business out there. After all,
anyone can call themselves a business without any
requirement to form a legal entity.
By
forming an official business entity like a Florida LLC and
representing your business to the public with the LLC
designation, your business will be raised to a higher level
of trust and credibility.
The
public understands that an LLC is an official entity which
required planning and an official formation process with the
State. This fact reduces any suspicion or doubt about
your business' legitimacy.
Continuity of
Life
An LLC is its own person, separate and
apart from its owners. As a result, an LLC business is
not subject to the uncertainties of its owners. Many
sole proprietorship businesses face major obstacles when its
owner dies or becomes sick. The LLC has a continuous
life and the laws have mechanisms in place to facilitate
business continuity despite the status of its owners.
CLICK HERE NOW for more details about our guaranteed 3
Business Day Service for
Forming a Florida LLC.
Please note that we are not accountants and tax laws may
change often so please seek the advice of your accountant to
make sure you fully understand the tax consequences and
requirements for your particular LLC situation.