Register your Company in Florida
Florida remains one of our most popular states for incorporation and LLC formation. With the fourth largest population in the United States, Florida has a thriving business community. Some of the largest U.S. companies, including Publix Super Markets and Tech Data, maintain their headquarters in Florida. This state also services many small businesses, particularly in major industries tourism, agriculture, and mining.
Forming a limited liability company in Florida
Forming a limited liability company (LLC) in Florida cultivates the benefits you seek in protecting your personal assets, gaining potential tax advantages and maximizing the credibility the “LLC” abbreviation lends to your business name. But as with any legal business structure, LLCs have their advantages and disadvantages.
The Sunshine State carries potential for small business owners seeking asset protection. A Florida LLC combines the liability protection of a corporation with the tax treatment and ease of administration of a partnership.
Forming an LLC in Florida also offers:
LLCs typically enjoy pass-through taxation where the members (owners) report their share of the LLC’s profit or loss on their individual tax returns. Any tax due is then paid at the individual level. Multi-member LLCs file an informational (partnership) tax return for the LLC, while single-member LLCs report all income or loss on Schedule C. Pass-through taxation sidesteps the double taxation incurred by C corporations when income is taxed at the corporate level and again at the individual level if corporate profits are distributed as dividends to owners (shareholders).
LLCs generally have no restrictions on the number of members allowed, and members have flexibility in structuring management of the company. Florida LLCs can also select varying types of distribution of profits. Unlike a common partnership where the split is 50-50, an LLC has room for much more flexibility.
The LLC business entity requires no corporate minutes or resolutions, making it easier to manage. Holding annual meetings of members and documenting major business decisions is still recommended, however.
Unlike Florida S corporations, Florida LLCs are allowed to have subsidiaries without restriction.
Limited Liability Company (LLC)
A business type with several advantages
When looking at business types, many business owners choose to form a limited liability company (LLC). Creating an LLC is a good way to “wall off” your personal assets from your company’s liabilities, offering protection for your personal assets in the event of a judgment against your business. For this reason, forming an LLC is a better fit for many owners than a sole proprietorship or a general partnership.
A limited liability company (LLC) also has certain tax advantages. The business itself is not responsible for taxes on its profits. Instead, the LLC’s owners, known as “members,” report their share of business profit and loss on their personal tax returns, similar to tax reporting for a general partnership. This is known as “pass-through” taxation.
The LLC Advantage
In short, there are many benefits of a limited liability company, including:
There’s no need to file a corporate tax return. Owners report their share of profit and loss on their individual tax returns.
No residency requirement
Owners need not be U.S. citizens or permanent residents.
Owners have limited liability for business debts and obligations.
Partners, suppliers and lenders may look more favorably on your business when you’ve formed an LLC.
Why is Florida a great state to incorporate in?
The primary benefit to incorporate in Florida is no personal income tax. In some states, corporations are charged a 5.5% tax on federal taxable income over $5,000. If you incorporate in Florida business and choose the “S” status, you will not have to pay the average corporation tax of 5.5%.
Florida “S” corporations are not taxable entities. This means they’re not required to file state income tax returns after the first year resulting in saved tax dollars.
Another great benefit is that Florida doesn’t have minimum capital requirements for incorporating your business. Some states require a minimum of $1,000 capital to start your business but Florida does not.
Incorporating in Florida is much simpler than other states because the director and officers can all be the same person. For example, the Director, President, Secretary and Treasurer can be one person.
Florida is a “business friendly” state with some of the lowest annual fees and fewest corporate reporting requirements.
What is a Florida Corporation and
What are the Benefits?
A Florida corporation is a legal entity that exists separately from its owners. You can start a business in Florida once articles of incorporation are completed properly, file to the state, pay incorporation fees, and receive acceptance by the Florida Secretary of State. A corporation is more complex than a sole proprietorship or a partnership but it has many advantages over these business structures.
A corporation is regarded as a separate legal entity and will normally shield its owners from personal responsibility for business losses. Whereas in a partnership or sole proprietorship the owner’s personal assets can be used to pay debts of the business.
A Florida corporation has a life of its own and does not dissolve when ownership changes. In addition, although a corporation may have multiple owners, this is not required and one person may individually establish and own a corporation.
When incorporated, you can also raise capital by selling stock. Health benefits and retirement funds can be easily set up for officers and employees which are then deducted from the corporation. If you can elect S corporation status, you can avoid double taxation.