Limited Liability Company

Florida Limited Liability Company- Some Details About It

When it comes to choosing the state to set up limited liability companies and corporations, Florida comes out to be the most popular one. The number of limited liability companies and corporations formed in Florida is much more than that in any other state. Most Florida limited liability company and corporations are owned by local residents of Florida. However, other people have also decided to set up their LLCs in the state of Florida because of their cheap maintenance fees.

Some benefits of forming a Florida Limited Liability Company are briefly discussed here. The most basic reason for forming a Florida Limited Liability Company is to minimize the owner's liability. The financial investments in a Florida LLC are secured from the creditors claims. If there is any kind of organizational change required then it can be done in the operating agreement only and nowhere else. The managers and managing directors of a Florida Limited Liability Company are fully secured from various personal liabilities. Corporate tax on a Florida Limited Liability Company was eliminated completely in the year 1990 with the introduction of new corporate income tax laws in Florida. In Florida, a LLC having multiple members is usually treated as a partnership for income tax purposes. Also, a LLC having only one member is ignored for the tax purpose. Hence, most Limited Liability Companies are exempted from Floridas corporate income tax. The Florida Limited Liability Company are just like S-corporations regarding federal tax purposes.

Naming your Florida Limited Liability Company is a very crucial aspect. The name of your limited liability company must fulfill all the requirements of the Florida Department of State. There are some points that must be considered while choosing the name of the company. In order to identify your company as a LLC you should suffix a proper last name for your company like LLC or Limited Liability Company. While conducting your business always use the precise name of your company. Next comes the concept of a registered agent. According to the laws of Florida, an individual or a company should be responsible for receiving significant legal & tax documents. This service is offered by the agents of a company who are registered to work in Florida. Hence, the meaning of registered agent is clear with this. The registered agent must have things like a valid address within Florida and he/she should be available during complete business hours in order to receive documents. The services that a registered agent of Florida offers are:-

* Accepting and advancing the legal documents, * Accepting and advancing the franchise tax & annual report forms, and * Receiving and forwarding services of the process.

There is a major disadvantage of Florida Limited Liability Company when compared to the S-corporation. This is related to the treatment of tax for various profits. These profits are subjected to some taxes in a LLC whereas these are exempted in an S-corporation.

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