If you are wondering about how to set up an LLC in Florida, then you should know that the answer to this is very easy. LLC stands for ‘Limited Liability Company’ and such a form of enterprise is amongst the most popular when it comes to small businesses. LLCs are definitely very popular in Florida and this popularity continues to increase as time passes. The Florida Department of State’s Division of Corporation has stated on their website that more than 128,000 LLCs have been filed in the state in the recent years. In fact, the year 2009 brought about more LLCs in the state as compared to the regular profit organizations that are seen around.
The popularity of such a business form
LLCs provide many advantages and these advantages are listed below:
- They provide limited liability protection to the owners
- They give advantage of passing through the income taxation to the owners or members, which means that an LLC is not like regular organizations as it is not subjected to double taxation
- There is great flexibility in a LLC when it comes to setting up capital structure and the distribution of profits to the members.
The procedure on how to set up an LLC in Florida
The entire procedure is fairly simple. The first step will be to prepare and then file the articles of the organization with the Division of Corporations. Articles of the organization will be the document that will create your company. This document will entail basic information regarding your company, like its name, principal address, registered agent’s name and address, as well as other important information. You should know that the company will not be created officially until formal registration with the Division of Corporations takes place.
Additionally, you will have to pay a state filing charge as the filing takes place. Once the entity has been filed, you will receive your new company’s tax identification number. The IRS will be able to provide you with this number.
This is another matter of consideration while you are in the process of creating the LLC in Florida. In case you plan on having multiple owners for your company, then you should enter into the Operating Agreement. This agreement is essentially a contract between the company’s members which helps in identifying their duties as well as rights to the company as well as each other.
For instance, the document might state the percentages of ownership for each member, how the profits and losses of the company will be allocated, the managerial structure, ownership transfer rights, as well as the managers and members voting powers. Such matters need to be considered so that future conflicts with business partners can be avoided.
Now you know how to set up an LLC in Florida. The procedure, while long, is itself very simple to execute and once you are done, you can start running your company without any worries.
If you need more information on how to set up an LLC in Florida, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt.