Everything You Need to Know About Starting an LLC in Florida
By Space Coast Daily // November 10, 2021
A Limited Liability Company, also known as an LLC, is a company that combines different aspects of sole proprietorships, partnerships, and corporations into a single business to ensure that owners are provided with flexible management, liability protection, and some advantages in tax payment.
What is an LLC?
An LLC can be defined as a legal entity that is formed to operate and own a business while at the same time providing limited liabilities similar to those provided by a corporation. LLCs are cheaper and easier to form and manage compared to other business entities.
If you are running a sole proprietorship business or are considering starting a new business, you can form an LLC instead. This is important for those who would like to keep their legal liability to the business minimal.
A business owner can use an LLC to run or even own all types of businesses. However, this depends on the state where the LLC is formed. For instance, some states require that certain types of professionals form special LLCs for their professionals.
In addition, you can form an LLC for businesses of any size. It does not matter whether the business is owned by a single person or has multiple owners. LLCs are very common with business people that own commercial and rental property. This is because they can manage their businesses easily and enjoy many other benefits that come with running an LLC.
Benefits of an LLC
LLCs are Simple
If you are looking for a business entity that is easy to form and run, then you need an LLC. Compared to other business entities such as corporations, LLCs do not require the business owners to ensure that they have directors, shareholders, or board meetings. The administrative responsibilities and burdens that come with other business entities are limited.
In addition, it gets quite easy to deal with the process of hiring and managing employees. When paying the employees, LLCs can easily generate payslips using a pay stub maker to ensure that all the details of the salaries are captured and that the employees understand all deductions with their salaries.
LLCs are Flexible
The flexibility that comes with LLCs in management, ownership, and taxation cannot be compared with any other type of business entity. For instance, an LLC can have any number of owners, from a single owner to hundreds or thousands of owners.
Additionally, all the owners of an LLC can share the responsibilities of running the business entity. That notwithstanding, the owners can appoint one of the owners to run the entity for them without any problems. This shows how flexible LLCs are.
Protection of Personal Assets
The owner(s) of an LLC is provided with limited liability. This means that the owner is not liable to any lawsuits related to the business or any debts that the LLC might incur.
It also means that people or other companies that might file lawsuits or even creditors to the LLC are not able to collect any personal assets for compensation. They can only collect assets belonging to the LLC.
What You Need to Know About Your LLC’s Tax Status
When it comes to corporations and other business entities, they get taxed at the business level once they make any profit. Once the taxed profits are passed onto the business shareholders, they are taxed for a second time. This is double taxation.
On the other hand, LLCs avoid this case of double taxation. Once an LLC makes a profit, the profit is not taxed at the business level. It is passed immediately to the business owners and taxed as part of their personal income. This eliminates double taxation.
How to File Your Papers & Obtain Your Certificate of Formation in Florida
You can easily file your papers and obtain your certificate of formation in Florida. To start with, you need to visit the Florida Division of Corporations to file the articles. You can do this online or by mail. You can also use an LLC formation company to help you with the process.
The steps include finding a name for your LLC, choosing a registered agent, filing articles of organization, creating an operating agent, and getting an EIN (Employer Identification Number). This way, you will get your certificate of formation in Florida without any issues.
In conclusion, an LLC will help you run your business easily and with flexibility. You will also enjoy the many benefits that come with running an LLC, including and not limited to avoiding double taxation and enjoying limited liability.
