Form LLC in Florida – Pitfalls to Avoid
More and more people are opting to become self-employed instead of working for someone else. One research showed that about 30% of the workforce has turned to their own independent living. One of the reasons for this self-reliance is the availability of LLC. A Limited Liability Company saves you from the many dangers that are involved in starting your own business, like the vulnerability of personal assets. Unlike other business forms, LLC keep your personal assets safe. It also allows you many tax flexibilities and gives you the choice of either opening on your own or becoming partners.
But it is the lack of considerations for seemingly small things that can cause your LLC to demolish even before it starts up. Here are some common mistakes that people make when they form LLC in Orlando, Florida.
Form LLC in Florida – Acting Before Thinking Thoroughly
It is essential that you think long and hard about which business you want to start before going ahead with the idea of LLC. There are three common business structures in US, The Limited Liability Company, the S Corporation and the C Corporation. Depending on what kind of business venture you want to start, you need to be careful about choosing the best business form. If you aren’t careful, you might end up paying more taxes, management issue, profit sharing problems etc. To form LLC in Orlando Florida, think before you act.
Form LLC in Florida – Your Place of Action
You have to have a registered area which you intend to call your office when you form LLC in Orlando, Florida. This address has to be added in the certificate of organization, so you have to make sure you some such area. This might not seem to be a big thing, but all your business documents like decennial filing or registration statements will be sent to you on this address. If you don’t have a permanent address yet, then get yourself a registered agent who would be responsible for all your legal transactions.
Form LLC in Florida – Management and Profit Sharing
Another thing that you need to discuss with your partner when you form LLC in Orlando, Florida is the management and profit sharing. Will you be managing the business yourself or would you hire a manager? It is recommended to manage your own business otherwise it could result in unwanted tax additions. You could divide what you manage or what your partner oversees.
Same is that case with profit sharing. Will you and your partner have an equal share in business? Or will it be negotiable? If you leave things as they are, they might create some confusions or misunderstandings later on.
Form LLC in Florida – Keeping Separate Accounts
Never ever make the mistake of maintaining a single account for both your personal and business needs. Form LLC in Orlando, Florida with a whole new bank account. If you have just one account for all your needs, it becomes difficult to separate your personal assets from your business. It is known as commingling and can become very dangerous for you. You can easily pay yourself from your business account and save your income in your personal account.
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.