Florida LLC incorporation has some tangible benefits that persuade many people in choosing it over traditional corporations. This is an overview of LLC’s in Florida. We offer incorporation as an LLC as one of our services if you so choose…
Florida LLC (Limited liability) companies are chosen most often because they are a combination of the most beneficial parts of partnerships and business corporations.
A Florida LLC (limited liability company) protects you from personal liability for debts acquired through business, similar to a corporation. A Florida LLC is different from a Florida corporation in that an LLC is a “Pass-through tax entity”. What that means in layman’s terms is, Florida LLC’s can pass through the profit and loss of the Florida business to it’s owners, who then report them on their IRS tax forms while doing their personal US taxes.
Creating a Florida LLC is a little bit more involved than it is to create a sole proprietor or partnership however, the day to day functioning of an LLC is less hassle than operating a general corporation.
Main points of Florida LLC
Your personal liability is limited…
Owners of Florida LLC’s are protected from personal responsibility (liability) for debts and claims against the LLC business. In the case of a miss-step the Florida LLC owners cannot be held liable personally for the mistakes. Florida LLC assets are subject to liquidation after legal action. LLC owners generally need not fear losing their personal vehicle, homes, or other assets unrelated to the limited liability company they own. However, there are exceptions…
Exceptions to Limited Liability for Florida LLC’s
If the owner of a Florida LLC has any of the following occur, he or she can be held personally liable for the consequences / damages:
- Personally and directly physically harms another individual.
- Personally guarantees a bank loan or business debt for the Florida LLC which ends up resulting in default.
- Does not deposit employees’ wage taxes as required by Florida state LLC law.
- With intent does something reckless, against the law, or commits fraud resulting in harm to the company or to someone personally.
- Commingles Florida LLC funds or affairs as if the owner and the LLC are one in the same and not separate legal entities. Keeping separate payments, checking accounts, assets, are all recommended… but there are detailed guidelines you should familiarize yourself by researching with the State of Florida online LLC information center.
This last exception is the most important. If owners don’t treat the LLC as a separate business, a court might decide that the LLC doesn’t really exist and find that its owners are really doing business as individuals, who are personally liable for their acts. To keep this from happening, make sure you and your co-owners:
Florida LLC owners might want to consider liability business insurance to help protect them against personal liabilities in the case of something going dreadfully wrong and a State of Florida court judges your Florida LLC does not really exist for some reason.
Florida LLC insurance can protect:
* Personal assets: Car, House, Boat, Savings, anything you own of value from lawsuits and legal claims.
Helpful LLC Links to more information:
I want to incorporate as a Florida LLC >
See more information about Florida LLC’s at:
Florida LLC Forms Library (free downloads)
or, these links for general incorporation information: