Limited Liability Company
Business Formation
I
f you are an entrepreneur, it can be difficult to determine the right corporate structure to suit your business idea. Different kinds of business entities feature various legal protections and advantages.
Most new business ventures are realized through the formation of a limited liability company (LLC). An LLC can be the least complicated of the available business structures, because of the detail it provides in running the organization.
LLCs integrate the advantages of a number of other incorporation options. An LLC offers some of the same benefits as sole proprietorships, partnerships, and corporations.
If you need legal guidance about forming a Florida limited liability company, contact the accomplished team at Farrow Law Firm. We proudly serve clients in the Palm Beach, Broward, Miami and New York City areas.
Our attorneys have a passion for justice and extensive business law expertise. We can help you to develop your new business venture into a legally recognized entity.
Limited Liability Companies vs. Corporations and Partnerships
As we mentioned above, forming an LLC offers many distinct advantages. Because it is a hybrid business structure, an LLC provides flexibility and liability limitations. Neither partnerships or corporations offer these features in the same way.
Distinctions from Corporations
In terms of structure, LLCs and corporations are very similar. The difference is that an LLC limits certain areas of liability for their owners. Ultimately, an LLC structure is a hybrid business form. It incorporates certain features of both partnerships and corporations.
A limited liability company is a formalized partnership arrangement. Because of this, forming an LLC involves filing articles of organization with the state of Florida.
After an LLC has been formed, it is subject to fewer state regulations than other business and organizational entities. This makes them easier to form than S corporations or C corporations.
Distinctions from Partnerships
A limited liability company is different from a corporation in terms of the regulatory statutes that apply to it.
An LLC is distinct from a partnership because it offers liability protections for the assets of its owners. When you form an LLC, your personal assets are legally separate from those of the business.
If your LLC faces debt or liabilities, you (and other owners) cannot be held personally responsible. Like a partnership, the revenue from an LLC is recorded by the owners’ tax returns. As an entity, the LLC will only file an informal tax return.
In short, the benefits of forming a limited liability company in Florida include:
- Easier to form than a corporation
- Limits personal liability for owners
- Features pass-through taxes
- Provides legal protections
When you are planning your next business venture, contact the skilled attorneys at Farrow Law Firm. We will assess the goals of your business model and help you to determine whether an LLC structure is right for you.
Forming an LLC in Florida
Speaking with the legal team at Farrow Law Firm can help you to decide which business structure is best for your next venture.
If you decide to form an LLC in Florida, there are several steps that you will need to take.
Name Your Company
You will need to choose a name for your company that is not already in use by another entity. In addition to availability, you should consider branding and marketability when choosing a name. The company’s name must include either “limited liability company” or “LLC.”
Appoint a Registered Agent
A registered agent is an individual that will act as an intermediary between your company and the state. Although you can legally act as your own registered agent, hiring a third party is typically better. This person will deliver documentation and communications between your LLC and the state of Florida.
File Your Company’s Articles of Organization
When you’re forming an LLC, you will need to file Articles of Organization with Florida’s Division of Corporations. The articles must contain important contact information for your business.
When you file Articles of Organization, the following information is required:
- The full name and office address of your business
- Effective formation date
- Name and contact information of your registered agent
- Name, signature, and contact information of an authorized member
There is a $125 filing fee required for submission of your Articles of Organization.
Obtain an Employer Identification Number (EIN)
An EIN is a number assigned to businesses by the IRS. This helps to identify your business for purposes of taxation.
Banks may also require your EIN for opening accounts or lines of credit. An accomplished business attorney can help your company to acquire an EIN.
Secure Licenses and Permits
Depending on the type of company that you are forming, you may need certain business licenses and permits. Businesses that operate in Broward and Miami are subject to certain commercial regulations and licensing requirements.
Contact an LLC Attorney in Florida
When you are planning a new business venture, legal counsel is critical. The skilled attorneys at Farrow Law Firm can help your new company to get started strong.
Our flat-fee payment structure means that there won’t be any surprise legal fees or bills. We get paid to get the job done, not to run up the clock. If you are interested in forming an LLC in Broward or Miami, contact Farrow Law Firm for an initial consultation.
