Is Starting a Florida LLC the Right Move For You?

If you are thinking about starting a business in the Sunshine State, you might be wondering if starting a Florida LLC is the right move for you. Although LLCs offer several benefits for entrepreneurs, before you decide to form an LLC in Florida, you should know what it entails and the steps you will need to follow. 

Fortunately, you came to the right place. Here is what you need to know:

What is an LLC and How Does it Work?

An LLC is a hybrid business structure that combines the simplicity and flexibility of a partnership with the liability protection of a corporation. This means that the owners of an LLC, called members, are not personally liable for the debts and obligations of the business, unless they have personally guaranteed them.

An LLC is also a pass-through entity for tax purposes, which means that the profits and losses of the business are reported on the personal tax returns of the members, avoiding double taxation at the corporate level. However, an LLC can also elect to be taxed as a corporation.

LLCs are governed by an operating agreement, which is a document that outlines the rights and responsibilities of the members, the management structure, the distribution of profits and losses, and other important aspects of the business. 

Although an operating agreement is not required by law in Florida, it is highly recommended to have one to avoid disputes and confusion among the members.

What are the Benefits of Starting a Florida LLC?

Forming an LLC in Florida has several advantages, such as:

• Limited liability protection: As mentioned above, an LLC protects its members from personal liability for the debts and obligations of the business. This means that your personal assets are not at risk if your business faces a lawsuit or bankruptcy.
• Tax flexibility: An LLC can choose how it wants to be taxed by the IRS. By default, however, an LLC is taxed as a pass-through entity. This allows the members to take advantage of deductions and credits that may lower their tax burden.
• Management flexibility: An LLC can be either member-managed or manager-managed. In other words, the members of an LLC can either run the business themselves or hire a manager to do it for them.
• Fewer formalities: An LLC is subject to fewer regulations and requirements than a corporation. For example, an LLC does not need to hold annual meetings, keep minutes, or file annual reports with the state.

How to Form an LLC in Florida 

If you have decided that starting an LLC in Florida is the right move for you, here are the steps you need to follow:

1. Choose a name for your Florida LLC: The name of your LLC must be distinguishable from any other existing business name registered with the state and include the words “Limited Liability Company” or the abbreviations “LLC” or “L.L.C.”
2. Assign a registered agent in Florida: A registered agent is a person or entity that agrees to receive legal notices and documents on behalf of your LLC. You can appoint yourself, a friend, a relative, a lawyer, an accountant, or a professional service company as your registered agent.
3. File your Articles of Organization: The Articles of Organization are the official document that creates your LLC with the state. You can file your Articles of Organization online or by mail with the Division of Corporations. The document must include the following information:
   • The name of your LLC
   • The name and address of your registered agent
   • The purpose of your LLC 
   • The names and addresses of the members or managers of your LLC
   • The effective date of your LLC
   • The signature of an authorized representative
4. Create your Operating Agreement: The operating agreement is the internal document that governs how your LLC will be run. It should include information regarding:
   • The allocation of profits and losses among the members
   • The rights and duties of the members and managers
   • The voting and decision-making procedures
   • The admission and withdrawal of members
   • The dissolution and winding up of the LLC
5. Get an EIN (Employer Identification Number): An EIN is a unique identification number assigned by the IRS to your LLC for tax purposes. You will need an EIN to hire employees, open a bank account, and file taxes for your LLC. You can apply for an EIN online, by mail, by fax, or by phone for free.

We Can Help You Start an LLC in Florida

Forming an LLC in Florida may seem like a simple and straightforward process; however, it can involve some legal and tax complexities that require professional guidance. That is why you should work with a law firm that specializes in business formation in Florida.

At Jurado & Associates, P.A., we have the experience and expertise to help you form your LLC in Florida quickly and efficiently, while ensuring that you comply with all the applicable state and federal laws and regulations. 

We can also: 

• Help you draft a customized operating agreement that suits your specific needs and goals, 
• Advise you on the best tax structure for your LLC, and
• Assist you with any other legal issues that may arise along the way.

If you are ready to take the next step towards starting an LLC in Florida, contact us today by phone at (305) 921-0976, by email at [email protected], or by WhatsApp at +1 (305) 921-0976. We look forward to hearing from you and helping you achieve your business dreams.