Form LLC in Florida – Advantages of LLC
Limited Liability Companies have their advantages and disadvantages, as do many other business structures. There are certain benefits you can enjoy when you form LLC in Florida as well, since the LLC abbreviation, when added to the name of your business will allow you to gain numerous tax advantages, protect your personal assets and enhance the credibility and authenticity of your business.
Florida is known as the Sunshine State, and it surely shines brightly on small business owners. There are plenty of benefits for people who want to start a business or form LLC in Florida, since an LLC in Florida will allow you to have ease of administration in a partnership, and protection from taxes with limited liability in a corporation.
There are other advantages you can enjoy when you form LLC in Florida. Some of them are:
Most LLCs reap the benefits of pass-through taxation which allows the owners of the LLC to announce their share of the company’s profit or loss in their tax returns. This means that any outstanding tax will then have to be paid individually. LLCs which are run by members file for a tax return which can be paid according to the partnership of the members in the LLC, whereas LLCs which are run on a manager management system will report all their losses and profits on Schedule C.
The major advantage of pass-through taxation lies in the fact that it allows businesses to avoid paying double taxation, which they are liable to pay by C corporations, since it incurs taxes on income at an individual level as well as a corporate level.
When you form LLC in Florida, you will enjoy the incredible flexibility of structural management in your company. This means that there will be no limits and restrictions on the number of members you employ in your company and any existing members will enjoy the benefits of a flexible management structure. The company will also be able to choose how it wants to distribute its profits amongst the members. A partnership usually has an even split when it comes to sharing profits, but an LLC can take advantage from the flexibility of dividing profits according to its own requirements.
There are fewer formalities when you form LLC in Florida, since there are no resolutions or time constraints on businesses in Florida. This makes it relatively easy to manage a business in Florida. However, a business should continue to hold annual meetings and take major business decisions on a timely basis. This will help the business run more smoothly and leave no room for complacency.
LLCs in Florida have no limits or restrictions on the number of subsidiaries they can keep, when compared to S Corporations in Florida, which have a limited amount of subsidiaries.
It is important to note that forming an LLC in Florida is not going to be very easy. However, the advantages you will get when you form LLC in Florida are virtually countless!
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.