LLC Florida
Florida was one of the first states to enact legislation permitting the organization of a limited liability company, due to an unfavorable, out of date Florida tax law and an out of date limited liability company law, the use of the Florida LLC languished.
Florida is the most popular state for LLCs and Corporations. More LLCs and Corporations are formed in Florida than in any other state. While most Florida LLCs and Corporations are used by residents of Florida, others also choose to use them for their inexpensive maintenance fees. Among boat owners and other passive investment owners, the Florida LLC is especially popular. The Florida LLC is a creative and flexible entity of choice to take advantage of living and doing business in Florida and our beneficial tax and business laws even if you are not a Florida resident or your business is not based in Florida.
Factors to Consider
Deciding to form your LLC in Florida should be based on certain determining factors.- Whether or not you intend to physically locate your business in Florida.
- Careful consideration to franchise taxation.
- The business goals for your company, where you intend to conduct the business and where you intend to bank and establish financial/credit footholds.
- Forming your LLC in a foreign state and doing business in Florida requires the corporation to formally qualify to do business as a “foreign corporation" in Florida, along with the commensurate duplicitous out of state registered agent fees.
Benefits of LLC in Florida
- Establishing your LLC in Florida will afford your company the flexibility to add members, benefit from decreased taxation, and will give your company unparalleled flexibility with respect to how it is organized, how distributions are handled, and how it is run. In effect, your business can reap the benefits and flexibility of a partnership while enjoying the same protections from liability and debt that a corporation provides.
- Another benefit of an LLC is that it is not subject to the same, stringent corporate formalities that a C or S corporation is subject to. It can be simpler to establish and run an LLC, provided that a quality, well written Operating Agreement is in place.
- A Florida LLC allows for as few as one member or as many members as your company is willing to have, with no limitations on numbers, and no limitations with respect to types of stock. The company must select a managing member who is typically the figure head of the organization and is responsible for it’s management.
- In addition to the limited liability protection, there are also substantial tax benefits to be garnered from the formation of an LLC. The LLC has the “check box method” of taxation available to it, wherein it can choose to be taxed as a “standard” corporation, with the LLC being taxed at the company level, then the members for individual distributions.