If you’re starting a limited liability company in Florida, you need to create an operating agreement. Although not required by law, an OA is a great way to protect your assets in case of legal or financial problems.
An OA also puts any verbal agreements about your LLC into writing, which can save time and money. It can also ensure that you have clear expectations.
Member-managed LLCs
Member-managed LLCs are simpler to form than manager-managed LLCs and allow each key member to have an equal role in the day-to-day operations of the business. However, they can be unwieldy and difficult to track, especially when there are several members involved.
If you are forming a member-managed LLC in Florida, you should consider writing an operating agreement. This will provide you with a play book that governs how the company is run and reduces conflicts amongst owners/members. It also ensures that all responsibilities are covered and will serve as a defense against disputes.
Manager-managed LLCs
Manager-managed LLCs allow members to delegate their operational control to designated managers. They may elect managers from among themselves or hire professional managers externally.
Generally, manager-managed LLCs are appropriate for companies that have a large number of members and need to consolidate administrative responsibilities. Alternatively, it can be an attractive option for small businesses.
Regardless of the type of management structure you choose, you should have a written operating agreement in place that clearly outlines how you want your LLC to be operated and how decisions will be made. An operating agreement will also help prevent potential misunderstandings between partners and reduce the risk of conflict.
Taxes
Florida is a tax-friendly state for small businesses, but there are some requirements that you should consider. You may be required to pay taxes on your LLC’s profits to the IRS, the State of Florida or both depending on your business structure.
You must also make sure that you have a registered agent who lives in Florida. Your registered agent is responsible for receiving legal and tax documents from your LLC and filing them with the state.
In addition, your LLC must file an annual report form with the Division of Corporations. This document must be filed no more than five business days prior to the end of the calendar year or 90 days after the end of the calendar year if you expect to transact business in the next calendar year.
It is a good idea to include a Florida LLC operating agreement in your formation package to define how the company will operate. This helps avoid confusion and misunderstandings that could lead to lawsuits or disputes. It can also codify the company’s rules of succession and governance procedures.
Requirements
Florida is a great place to start your business, and one of the most popular business structures there is the limited liability company. It’s a lot less complicated than a corporation, and it offers some distinct benefits.
It’s also a great way to separate your personal assets from your business finances. However, there are a few requirements you need to follow before your LLC can get started.
First, you need to file articles of organization with the state. The process is simple, and you can do it online or by mail.
Your articles must include your LLC’s name, address, and the purpose of the company. It’s important to include your registered agent’s information as well.
Your registered agent will be responsible for receiving important tax forms, legal documents, and official government correspondence on behalf of your business. You can designate yourself as your registered agent or hire a legal service firm.