Florida LLC Explained In Brief
Transitioning to a Florida LLC might be a natural step for your business or it might be the way to start your business. In many cases, this is the wisest decision for a business because it allows the most options for how the business will be taxed. An LLC or a Limited Liability Company is one of the most popular choices for small to medium sized businesses. This type of business organization is a combination of a partnership and a corporation in many respects. In that regard, the LLC has the liability protection it needs similar to that of a corporation but it also has the tax benefits of a partnership. You can register your business in Florida as an LLC when you follow the Florida LLC rules.
Key Reasons to Create a Florida LLC
Florida LLC rules are very specific, but if you are able to meet those requirements, there are some very specific benefits to filing for an LLC.
- The LLC has limited personal liability for the business obligations and the business’s debts. Unlike a partnership, your personal finances are no longer at risk with an LLC.
- You do not have to be United States citizens or permanent resident in order to get this type of classification.
- In addition, unlike other forms of business classification, you will find that the LLC offers simplified record keeping. You do not have to have annual meetings and there are no minutes requirements.
It is also important to point out the tax implications of this type of business. In a partnership (or a sole proprietorship), the Florida LLC is able to utilize pass through taxation. What this means is that the owners of the business report their share of profits as well as losses within the business through their individual tax returns. As such, the owners, who are also known as members, are able to avoid double taxation since the company itself is not taxed. In addition, if you file the proper paperwork to do so, you can become an LLC owner and then request that the IRS tax your business as a C corporation or an S Corporation with the help of an Orlando business lawyer.
However, you do have to meet some specific requirements in order to meet these particular goals. You will need to have the necessary business licenses and permits in place. You will need to establish your business properly and you will need to register it.
The good news is that an Orlando business lawyer can help you through this entire process. The attorney can also help you with LLC dissolution, preplanning and managing your business after becoming a Florida LLC.
Learn more about business legal issues by visiting our business law pages