The Formation of a Florida LLC Insider Report



In recent years, the Florida Limited Liability Company (LLC or corporation) has emerged as an ideal investment vehicle and commercial entity for business owners and real estate investors. Secondly, this article provides an explanation of the most important legal and business issues that must be addressed when forming a limited liability company in Florida.

WHY FLORIDA LLC became an investment vehicle and commercial entity IDEAL

Florida has become a haven for investors and entrepreneurs. The main feature is the limited liability companies. In recent years, Florida has become the undisputed king LLC. The Secretary of State of Florida has registered 135,851 new companies with limited liability in 2007.

Preferred investment vehicle for ALIENS

The limited liability company is the preferred investment vehicle for foreigners who want to invest in real estate in Florida or establish a commercial presence in Florida. One or more persons may form a limited liability company in Florida. Florida law defines a company limited liability company as each occupation and other legal business, purpose or activity, whether or not carried on for profit.

Professional liability ENTERPRISES LIMITED

Florida law allows licensed professionals to organize a special category LLC. Professional limited liability company organized for the sole and specific to provide a professional service that has as its only members of other limited liability companies, trade or professional societies of people who are properly licensed and legally authorized to provide the same professional service as a limited liability company. Under Florida law, a professional company is organized and operated in the same way as a traditional LLC, except that the limited liability company business must meet several specific requirements to limit membership and licensed professionals maintain the integrity of the profession under license. Finally, any member of a professional limited liability company may enter into any other person no agreement with the power to exercise the voting rights of that member of the limited liability company professional.

BENEFITS LLC

The main advantages of a limited liability company in Florida are:

1. Taxation. For purposes of US federal tax revenue, an LLC is treated as a partnership unless members choose to have the limited liability company taxed as a sole proprietorship, partnership or corporation C. Taxation as a partnership of results in transfer income and deductions attributable to each member which are then reported to the service of internal revenue in the return of the owner of this tax.

2. Limited. Members of a limited liability company in Florida are protected from liability for acts and debts of the company, just like shareholders of a company are protected against personal liability for acts and debts of the company.

3. LLC far fewer formalities than a corporation. For example, a limited liability company is owned by its members and managed by a manager or a member of management.

4. Lenders often require members of new entities to personally guarantee the loans of the limited liability company. Thus, members will be personally liable for the loan obligations of the limited liability company.

5. The principles of a Florida LLC to use many different titles - member, manager or member of management.

Name FLORIDA requirements LLC

Florida law provides specific requirements for the name of a limited liability company.
These basic requirements are a name LLC:

It must contain the words "limited liability company", the "LLC", abbreviation or the designation "LLC" as the last words of each name of a limited liability company incorporated under the provisions of this chapter. The word " limited "can be abbreviated as" Ltd. "and the word" company "may be abbreviated as" Co. "Omit the words" limited liability company ", the" LLC "or abbreviated designation" LLC "in the use of name of the limited liability company shall provide any person who knowingly participates in the omission or knowingly acquiesces in the omission, responsible for any debt, damage or failure due responsibility.

TRAINING PROCESS LLC

To form a limited liability company in Florida, articles of organization must be filed with the Department of State by one or more members or representatives of the limited liability company licensed. The articles of organization are the initial items, modified, corrected an LLC organization.

The articles of organization are filed with the Florida Secretary of State Corporations Division and must include the name of the limited liability company, main and mailing address, information Registered Agent, Manager (s) or Member manager (s) and a statement to the effective date of the limited liability company.

Unless a date delayed effect is specified, the company's existence begins at the date and time the articles of organization are filed, as evidenced by the date of the State Department and approval time on the original document, or on a specified date the staging agreement, if that date is within five business days before the filing date.

The articles of organization may set a delayed effective time and date of the existence of the company, and if indicated, the articles of organization will come into force, and the existence of a limited liability company limited should start on time and the specified date.

OPERATION AGREEMENT

The operating agreement of a limited liability company is crucial to its success, as it determines, defines and distributes rights and obligations of members. Members of a company may enter into an operating agreement before, after or at the time the articles of organization are filed, and the operating agreement is effective on the date of formation of the LLC or any another date specified in the operating agreement.

Florida law provides that certain provisions of the operating agreement of a limited liability company can not be canceled. For example, suppose you well form a limited liability company in Florida and performing real estate assets on behalf of a limited liability company.
COST OF FORMATION OF FLORIDA LLC

Compared to other states, deposition rates and the maintenance of Florida LLCs are relatively inexpensive.
 
OBTAINING AN IDENTIFICATION NUMBER OF EMPLOYER

Once your company has been formed in Florida, you must obtain a federal employer identification number. ITIN are not valid identification outside the tax system.

CONCLUSION

The limited liability company in Florida is a versatile choice for property investment and legal persons.

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