In order to protect your personal assets when you want to build a corporation, you can file a Limited Liability Company in Florida. There are so many advantages aside from protecting your assets, you can also gain benefits such as easy access to partnership, protection on the corporation’s liability and benefits on the tax. This is what LLC Florida offers to your company. You can research more here at Florida sunbiz website. There are also many advantages you can experience. But every good sides comes with a negative effects. In all legal business entity, we have to know the good and bad sides like this LLC to know what you are getting from your business.
- Traverse Taxation. Unlike the S Corp, the company does not acquire the double taxation when it comes to income tax. All members will report to the LLC profits and loss as an individual income tax return.
- Few formalities. Annual meeting and documentation of large businesses are still recommended but the company does not use the resolution and minutes for easy management.
- Flexible. The company is very flexible when it comes to allowing of members in the number of shareholders and the structuring management of the members. It has different types of distribution profits and allows more room for opportunity. Unlike other companies who have 50-50 shares in all members.
- Ownership transfer. They limit the ownership transfer which is kind of hard to process than with the corporation. You have to read all the agreement presented whether the account is transferable or needs member’s approval first.
- Ongoing and initial fee. The fees are expensive when you compare to having partnerships or sole proprietorship.
- Least case law. The LLC is just a newer business company that is why there is not much case law on the company.
These are the honest good and bad reviews about forming Llc florida. It is now in your decision on what to do.