Small business owners often worry about protecting their personal assets so they can confidently pursue their business ideas. Registering an LLC in Florida is one of the most effective ways to create a layer of protection between your business and your personal life.
Our Orlando business lawyers team assists with all aspects of LLC registration, including preparing articles of organization, drafting operating agreements, and advising on tax implications.
Our clients benefit from our understanding of Florida’s legal landscape and dedication to our community.
What Is an LLC?
A limited liability company (LLC) is a business structure that combines the limited liability of corporations with the flexibility of other entities like partnerships and sole proprietorships.
In other words, an LLC protects personal assets from company liabilities—if the company owes a debt, its creditor typically cannot collect on that debt by taking personal assets.
Forming an LLC in Florida
Forming an LLC in Florida involves several steps, including:
- Choose a name. Select a unique name that complies with Florida’s naming requirements and includes “Limited Liability Company” or “LLC.”
- File articles of organization. Submit articles of organization outlining basic details about your LLC, including its name, address, and registered agent, to the Florida Division of Corporations.
- Appoint a registered agent. Designate a registered agent who must be a Florida resident or a business authorized to operate in the state to accept legal documents on the LLC’s behalf.
- Create an operating agreement. While not required by Florida law, an operating agreement establishes the rules and structure of your LLC, defining roles, responsibilities, and decision-making processes.
- Request an Employer Identification Number (EIN). To set up a company bank account and hire employees, request an EIN from the Internal Revenue Service (IRS).
- Maintain active status. To maintain active status, LLCs must file an annual report with the state, stay up-to-date on taxes and fees, and may have to file beneficial ownership information (BOI) with the federal Financial Crimes and Enforcement Network (FinCEN).
Following these steps registers your LLC in Florida and allows you to operate your company.
Benefits of Creating an LLC in Florida
Creating an LLC in Florida offers several advantages for small business owners. Florida law amplifies many of the typical LLC benefits, like asset protection, tax advantages, and flexible structuring options, and offers low costs and simplified filing and maintenance.
Asset Protection
Forming an LLC separates personal and business liabilities. Separating these liabilities means that the business’s creditors cannot take the owner’s personal assets, such as a home or savings account, even for valid debts and even when the LLC cannot pay.
Florida’s LLC laws also protect business assets. If an individual member owes a debt, their creditor cannot typically collect on that debt by taking LLC property.
Tax Advantages
You can have your LLC treated as a different entity type for tax purposes, including:
- Sole proprietorships,
- Partnerships, or
- Corporations.
When you treat them as partnerships or sole proprietorships, LLCs offer pass-through taxation. LLC income “passes through” to become the individual income of the LLC member for tax purposes. This option allows LLCs to avoid the double taxation often associated with corporations.
A corporation’s dividends are taxed at the corporate level and taxed as individual income for the recipients. Yet, the federal government may tax LLC income only once, depending on how you elect to have the LLC treated.
Additionally, Florida imposes a corporate income tax but does not impose a state income tax on individuals. So, when LLC income passes through to individuals, Florida does not tax it.
Flexibility
LLCs offer flexibility in business structure and operations, such as:
- Ownership structure—LLCs allow unlimited members, including individuals, corporations, or other LLCs;
- Customizable management—LLCs can be member-managed, where all members participate in operations or manager-managed, where managers handle day-to-day responsibilities;
- Operating agreements—highly customizable LLC operating agreements outline the LLC’s structure, ownership, and management; and
- Adaptability—LLCs can easily add or remove members, change management structures, or convert to a different entity type as businesses grow and evolve.
This flexibility enables Florida LLCs to evolve as their owners’ goals, vision, and operational preferences change.
Low-Cost Filing and Maintenance
Florida provides affordable fees and straightforward requirements for LLCs. It also offers an online filing system that simplifies the initial filing process and maintaining an LLC’s active status.
Business-Friendly Environment
Florida law supports small businesses through policies that foster growth and innovation. The state’s lack of income tax for individuals and straightforward regulatory framework make it an attractive destination for entrepreneurs.
Partnering with BrewerLong
Registering an LLC in Florida benefits small business owners, from asset protection to tax advantages. Florida’s business-friendly environment, affordable costs, and flexible structuring options make it an ideal state for LLC formation.
By partnering with BrewerLong, business owners can feel confident that their LLC is structured to support long-term success. Contact BrewerLong today to learn more about forming an LLC and taking the next step toward building a successful Florida business.
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