An LLC is a type of business structure that allows you to limit your personal liability. It also offers many other benefits for business owners.
However, forming an LLC in Florida can take time, as there are some steps you need to complete before the state will approve it. To help you get the process started, here are a few things to know before you start.
Initial Filing
If you want to form an LLC in Florida, you must first file your paperwork with the state. This process can take up to 7 business days, depending on how you file your documents.
Once your paperwork has been approved, you will need to make sure you have the proper documents in place to safeguard your company’s future and protect its identity. You’ll need a registered agent to accept official mail on behalf of your company and an operating agreement to define your LLC’s management structure and how profits are allocated.
You will also need to register for an EIN, or employer identification number, which identifies your Florida LLC with the government like a social security number. It’s free to get an EIN, and it takes a few minutes of your time.
You may also need to apply for a variety of licenses or permits as you develop your business. These may include health department permits, zoning permits, professional licenses and more.
Articles of Incorporation
The articles of incorporation are the official document that creates a corporation. Whether you’re forming an S or C corporation, your articles of incorporation are critical to the success of your business.
The documents contain important information about your corporation, such as the company’s name, number of shares, and initial directors. Often, they also include optional provisions that customize methods of decision making.
In addition, the articles often specify a registered agent – an individual or legal firm that accepts mail and other communications on behalf of your LLC. The person or firm must be a Florida resident and have a Florida address.
Once you’ve completed the filing, the state will email an Acknowledgement Letter and a link to download your stamped approved Articles of Incorporation. However, it can take two weeks or more to process the paperwork and have your LLC on record with the state.
Registered Agent
If you want to operate your business in a particular state, such as Florida, you must register with that state. The process can be lengthy, but LegalZoom offers a service that will generate an operating agreement and submit it to the secretary of state for $99.
You may also need to apply for an Employer Identification Number (EIN). An EIN is like a Social Security number for your business.
Lastly, you need to name an individual or company that will act as your registered agent. This person will receive mail on behalf of your business and respond to government notices.
The person you name as your registered agent should have a physical address in your state, and it should be available during regular business hours. Otherwise, it could be difficult or even impossible to deliver mail on your behalf. This can result in missed mail, which can negatively affect your business.
Operating Agreement
The operating agreement is an important document that outlines how the LLC will operate. The document covers such matters as management structure, distribution of profits and losses, voting rights and wind-down procedures.
An operating agreement proactively addresses bumps in the road that can cause serious problems for an LLC business if not addressed ahead of time. These include death, a member withdrawing from the business, disagreements between or among members, changes in the operating agreement and other issues that are particular to the business’s industry.
A well-crafted Florida LLC operating agreement can also address taxation issues and custom provisions for asset protection. An experienced attorney can create an operating agreement that helps you take advantage of the flexibility and advantages offered by the state’s LLC statute.
Rather than relying on the state’s default rules, most LLC members prefer to craft an operating agreement tailored to their unique business plan and relationships with other LLC owners. A seasoned attorney can help you create an individualized LLC operating agreement that protects your business assets and makes it easier for creditors to collect on judgments against the LLC.