Florida Limited Liability Company Filing:
A limited liability company (LLC) is a relatively new business structure. It was created to combine the advantages offered by both corporations and partnerships. An LLC provides the members (owners) of the business limited liability protection like shareholders in a corporation combined with the simpler operation and tax advantages of a partnership.
Although Florida does not require an operating agreement to be filed in order to form an LLC, executing one is highly advisable. Particularly in a multi-member LLC, it’s the basis on which you establish consistency and understanding about how meetings are conducted, how the company will be managed and decisions made, duties of members, what contributions are required from members, how profits and losses will be calculated, limitations of liability and protection of members, and how members might be added, terminated or exit.
An LLC is created by filing Articles of Organization with SUNBIZ along with the appropriate filing fee. Like a corporation, an LLC will be responsible for paying an annual fee with the State of Florida to continue its existence.
Advantages:
• Limited liability for business debts
• Taxed as a partnership so there is no double taxation
• Easier to establish and maintain than a corporation
Disadvantages:
• More complex start up requirements than partnerships or sole proprietorships
• Since it is a relatively new business structure it has not been thoroughly tested by the courts
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