Whether you’re just starting out or are looking to grow your business, deciding whether or not to register your LLC in Florida is an important decision. With so many state-specific rules, it can be overwhelming.
A limited liability company (LLC) is a hybrid business structure that offers the tax advantages of a sole proprietorship or partnership while offering a liability shield like a corporation. If you’re considering forming an LLC in Florida, keep reading to learn more.
What is an LLC?
An LLC is a business entity that separates ownership from management. It does not issue physical stock certificates like a corporation, instead dividing ownership among its members on a percentage basis.
When forming an LLC, the first step is to file Articles of Organization with your state. These documents will include information about the company, such as its name and purpose.
A second step is to establish a registered agent for your LLC. This will be the person who receives legal documents and tax notices on behalf of the LLC.
Finally, you will want to create an operating agreement for your LLC. This is a document that details the division of ownership, labor and profits, and often helps to head off disputes between members.
Depending on the type of business you operate, LLCs can be single-member, multimember, member-managed, manager-managed or professional limited liability companies (PLLCs), which are a type of LLC geared towards certain professions.
What are the benefits of an LLC?
One of the biggest advantages of having an LLC is that it helps shield your personal assets from business debts. If you get sued, a creditor can only claim your company’s assets (and not your personal house or checking account).
Another advantage is that it provides tax benefits for the owners. Depending on the number of members and any profit-sharing or sweat equity agreements, an LLC can pay its owners differently, which will change how they’re taxed.
Getting started with an LLC can be a good idea, especially for small businesses. You should speak to a tax advisor to decide whether it’s the right choice for you.
How do I form an LLC?
Forming an LLC is an excellent way to establish your business and protect your personal assets. It is easy to set up and offers many tax benefits for small businesses.
To form an LLC, you must first decide on a business name and create an operating agreement. This is an important document that will outline how the company will operate and provide a framework for ownership rights, management duties, profit allocations and other details.
Once you have a business name, you will need to check it for availability on the Florida Secretary of State website before submitting your articles of organization. A preliminary name search can help you avoid problems with another company claiming your business name.
How much does it cost to form an LLC?
If you’re a small business owner and want to turn your dream of starting a company into a reality, you might wonder how much it costs to register your LLC in Florida. The good news is that it doesn’t take a huge budget to start and grow your business in the state, but there are a few mandatory fees you’ll need to pay and optional purchases you may want to make.
For starters, you’ll need to pay a $125 filing fee to form your LLC in the state of Florida. This includes the filing of articles of organization, which create the LLC and give it legal status to do business in Florida.
You can also hire a registered agent, who will accept mail on behalf of your LLC and ensure that you’re always in compliance with state law. A registered agent service can cost around $300 a year, but it’s worth the investment for peace of mind.