A Florida LLC is a legal entity that allows you to limit your liability while keeping business assets separate from personal ones. You can form an LLC in Florida with a single member or multiple members.
After you form your LLC, you’ll need to file articles of organization with the state. These documents will set up your business, allowing you to apply for an Employer Identification Number (EIN) and business licenses.
Purpose
A limited liability company (LLC) is a popular business structure that combines the flexibility of a partnership with the asset protection of a corporation. It provides many benefits for small business owners who want to protect their personal assets from lawsuits and other liabilities.
Florida is one of a few states that does not impose state income tax on LLCs, sole proprietorships and partnerships. This can make a big difference for those who form an LLC in Florida.
However, if you want to operate your business in Florida, you will also need to get the necessary local licenses and permits. These will vary depending on your line of business and how you derive your profits.
Once you have formed your LLC, it is important to choose a registered agent for your company. This person is responsible for receiving important business documents, taxes, legal documents, and other official government correspondence on behalf of your company.
Members
LLCs offer many benefits over other business structures, such as flexibility in organizational structure and limited liability protection for members. They can also be useful for businesses with multiple owners spread across the country or overseas.
Florida LLCs are often organized as pass-through entities, meaning that profits go directly to members without being taxed at the company level. This allows all LLC members to lower their tax burdens by claiming the money they earn on their personal income taxes.
When forming an LLC in Florida, there are a few important steps you should take. First, you must decide how the LLC will be managed.
The management type you choose can affect how the LLC will run, including the number of members and managers.
You may be able to create an operating agreement between members that will help the LLC function more effectively. It can also protect the LLC from legal disputes between members.
Registered agent
In Florida, business entities like limited liability companies (LLCs) and corporations must have a registered agent. This person or firm receives official state and federal government notices on behalf of the business.
A registered agent also helps with annual reports, corporate filings and other important legal documents for businesses in Florida. These services can help take the stress out of keeping your business compliant and allow you to focus on growing it.
When choosing a registered agent, look for someone with experience in Florida law. This is important since compliance obligations differ from state to state.
Depending on your needs, you might be able to hire a local registered agent or opt for a service that provides a secure online account. Some providers offer a free year of service when you sign up.
Annual report
In order to maintain an LLC’s “active” status with the state of Florida, it must file an annual report each year. These reports are due on May 1st of each year and must be filed online through the Division of Corporations’ website.
While filing the annual report is relatively simple, it’s important to note that failure to file it by the deadline will result in a $400 penalty and possibly dissolution of your business entity. Failing to file the annual report also means you’ll need to submit articles of dissolution in order to legally dissolve your company.
The Florida Division of Corporations (also known as Sunbiz) will send you four courtesy reminder notices throughout the year. These notices are a great way to help you remember to file and pay your LLC annual report.
As you can see, Florida LLC formation requirements require a lot of work on your part to stay in compliance with state law. It’s important to understand these laws, which can be overwhelming for new business owners.