Advantages of Forming an LLC in Florida
Many people come to our offices to form llc in Florida. We advise them that Incorporating in Florida has vast benefits. The pro-business government makes it desirable to start a business in the state. You can enjoy personal asset protection, tax advantages and economic stability when you form an LLC in Florida.
Form LLC in Florida – The Advantages
Personal Asset Protection – LLCs in Florida enjoy limited liability. That means they are not liable personally for obligations and debts contracted by the company.
Fewer regulations – Starting a business can involve a lot of paperwork and formalities. Florida implements policies to expedite these regulations, making it easier to start your business in a short time. Incorporating in Florida does not require having corporate minutes or resolutions. This makes it easier to manage the business.
Personal Tax Advantages –When you form an LLC in Florida, you do not have to file taxes as a business as required in other states. Profit or loss incurred is reported on the member’s individual tax returns. Any tax due is then paid individually. This allows LLCs in Florida to avoid double taxation.
Membership – Another characteristic of incorporation in Florida is that there are no restrictions on the number of members in an LLC. Florida even allows for a single member LLC structure. Other corporations, LLCs, partnerships and foreign businesses can form an LLC in Florida. When companies and trusts form a Florida LLC, the relationship can provide fringe benefits like health and life insurance plans and an additional level of security.
Flexibility – Forming an LLC in Florida does not require you to have a minimum initial capital. This helps in the long-run as it provides flexibility in operating capital. When you incorporate in Florida, you can select various profit distribution methods. Unlike common partnerships, where profits are divided on 50-50 ratio, LLC allows flexibility based on what factors you take into distributing profits. This can allow members to enjoy profits along with their individual ownership share.
Confidentiality – The state of Florida does not keep records of members, managing members, nor disclose information that may be confidential in nature. Although, the state requires recordkeeping, like listing your management and members.
Business Friendly Environment – The business friendly environment in Florida makes it a suitable state to set up a business. The court systems are well versed on corporate laws. The costs to form an LLC in Florida, the capital structure, the infrastructure and various fringe benefits are more favorable than other states.
Factors to Consider
If you decide on moving to Florida, consider the structure of your business, as LLCs are expensive to form than sole trading and partnerships. Also consider where you want to locate in Florida. Each city has its pros and cons. Know your target market, and how you want to sell, either locally, nationally, or exporting. Though the court system is business friendly, there is minimal law protection for LLCs as they are a newer business structure in the state.
Whether you decide on locating to Florida or setting up an LLC from elsewhere, consider the advantages and the factors. If you have the right business plan, the state’s incentives will help your business grow and maximize profits.
If you need more information about our business development services, please contact us at 407-344-1228. FreedomSBS is a marketing, graphic & web design, accounting, internet marketing, business development, and corporate law resource firm all in one! FreedomSBS is your one stop shop to start, grow and mature your business. Our services include: incorporation services, graphic design, logo design, web design, web development, internet marketing, search engine optimization (SEO), marketing consultations and corporate law resources. Our services are provided nationwide, but since our main office is located in Kissimmee, FL, we mainly help businesses in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL.