Whether you’re an individual seeking to protect your freelance work or a doctor looking for a private practice, forming an LLC in Florida can be a smart move. The state offers a variety of tax advantages and strong liability protection for LLCs, making it an excellent option for many types of businesses.
Taxes
One of the most popular business structures is the limited liability company (LLC), which has many tax advantages. LLCs are pass-through entities, which means that their profits pass through to the owners and are not subject to corporate income tax.
This tax advantage can be a significant benefit for business owners, enabling them to deduct business expenses from their personal income taxes.
If you’re looking to start a Florida LLC, it’s important to understand the various taxes associated with LLCs in the state. This includes sales and use tax, reemployment (unemployment) tax, communication services tax, and more.
If you plan to sell goods or services in the state, your LLC may need to register with the Department of Revenue and pay periodic sales taxes on the items sold. You’ll also need to determine which counties and cities you’ll be doing business in, and learn about the local taxes that apply to your specific business. Taking the time to research the various taxes that you’ll be required to pay can help you keep your Florida LLC up and running smoothly!
Registered agent
If you are forming a Florida LLC, you will need to designate your registered agent on the Articles of Organization you submit with the state. The person or company designated as the registered agent will accept service of process for legal documents and government notifications on behalf of your LLC.
A registered agent is important for any business entity in the state of Florida, as they provide a physical address that can be used to receive service of process or other official legal mail. If you do not maintain this service, your LLC could face penalties and fees, and the state can dissolve it.
You can choose to be your own registered agent, or you can hire a service that will act on your behalf and handle all the legal matters related to your Florida LLC. A good registered agent will also forward any incoming mail on your behalf and store it securely online for easy access.
Management
One of the most important decisions an LLC owner will make is deciding how they want to manage their limited liability company. There are two basic management structures in Florida – member-managed and manager-managed.
In a member-managed LLC, each LLC member has management authority in the company. This means that a member can enter into contracts, make business decisions, and oversee day-to-day activities of the company.
However, this can be problematic in some cases, especially if a creditor can get access to the LLC’s assets and financial accounts through a judgment. In that case, a member may need to obtain a Statement of Authority from their attorney.
The decision whether to have managers or members in charge of the management of your LLC will depend on your business goals and your personal preferences. It is advisable to decide on a management structure at the beginning and state your choice in your Certificate of Formation, operating agreement, and Articles of Organization.
Dissolution
An LLC is a type of business that marries the elements of a corporation and a partnership. When an LLC is ready to dissolve, the owner must take a series of steps to wind up the business and avoid future legal complications.
To dissolve an LLC in Florida, the owner must follow the steps outlined by state law. This process includes valuing the company, collecting any owed taxes, and distributing assets to creditors.
The owner must also prepare a final tax return on the federal and state level and cancel any permits, licenses, or other business contracts. The IRS will need to close the entity’s EIN (employer identification number).
The LLC dissolution process can be a complicated one. However, if the steps are taken carefully, it can be accomplished in a timely manner and without any legal complications. It’s always a good idea to consult an experienced attorney for help with the process. BrewerLong attorneys possess intricate knowledge of business matters and can help you close out your Florida LLC successfully.