Florida has seen a steady incline in both its employment levels and overall labor force. This is a continued sign of economic prosperity and growth, despite the protruding obstacle of the pandemic. In fact, the U.S Bureau of Labor Statistics marked the Professional and Business sector as having a particularly good half, leading into the festive season.
With the economy presenting as stable, you may consider starting your own business, or LLC – but this can seem daunting. However, there is a wealth of information available to demystify starting an LLC in Florida.
What is an LLC?
An LLC, or a Limited Liability Company, is an operation that is created to form a business entity. The format of an LLC enables a business owner or company to acquire more privacy and protection than other, more traditional corporations. However, unlike other business structures, an LLC is distinct and separate from its owners. This is particularly advantageous, as the owner is therefore nominally liable for any debt or financial duress that the corporation may accrue.
There are, though, several legal parameters set in place when beginning and setting up an LLC. As a legal entity, an LLC can only be realized once legal protocol has been set in place. As a result, it is vital that the process of starting your corporation is strictly adhered to, and legally sound. An LLC can be started by multiple members or separate business entities.
Who should start their own LLC in Florida?
If you operate your business as a sole proprietorship, it may be beneficial to form an LLC. In the same way, if you have just recently started a business, you should consider an LLC.
Why start an LLC in Florida?
Florida has maintained a consistently low income-tax rate, making it an attractive place to start your own LLC. Here are some appealing reasons to start your own LLC in Florida:
A setback to traditional corporations has always been the unwanted existence of liability. Should your business be faced with a lawsuit, or unforeseen debt, you, the owner of the corporation, are personally liable for the financial shortcomings. This would mean that your personal assets act as surety.
With an LLC, not only are your personal assets safe, but your business is the only asset considered in financial incidents. If a lawsuit or debt occurs, your LLC is liable, but you are not. Similarly, creditors cannot claim from personal members.
It is a known fact that utilizing the format of an LLC grants your business a high level of professionalism. As a result, your business is more likely to procure funding and backing that may prove vital to the success of your business. This may not be possible without your choice of an LLC.
Another beneficial aspect of an LLC is the anonymity that it provides. This means that business members can keep their personal information and names confidential, and separate from the LLC. This aids members during the transaction process, as their names are anonymous.
LLC’s provide great flexibility. There is no cap on the number of members, or separate businesses that are attached. In the same way, accountability for day-to-day management is shared equally amongst members.
This flexibility extends further to the governance of tax and profit shares. LLC’s are able to select the manner in which they are taxed. Meaning, LLC can choose to be taxed as traditional corporations, or sole partnerships.
LLC’s make use of pass-through taxation. As a result, the members of the business take personal accountability for their shares in profit on their tax returns. This means that there is no unnecessary double taxation – which is commonly seen in traditional corporations.
The growing economy of Florida, and the alluring income tax rates, make the state a perfect ground for forming a new business, and LLC. With flexible taxation and member organization, as well as useful liability protection; creating an LLC in Florida has never looked better. For smooth and informative guidance on how to start an LLC in Florida, it is always recommended that you consult a professional in the field.