Online Incorporation MaxBlog

Why should you form an LLC in Florida?

Business choose Florida as one of the top few states to incorporate. Florida has become one of the most desirable states in the country in which to conduct business. The State consistently leads the nation in new business incorporations. With one of the largest supplies of business parks, an advantageous business tax system, transportation availability, 14 foreign trade zones, an abundance of electrical power, and a large population of skilled human resources, Florida provides everything that a business requires to function.

New businesses are registered in Florida each year. Most of these businesses are incorporated as Florida corporations. In 1997, over 100,000 new Florida corporations were formed. The number of businesses that registered as limited liability companies, on the other hand, were less. There was only a little over 2000 Florida LLCs in 1997.

The substantial difference in the number was due to Florida’s LLCs laws. A 5.5% income tax was applied to every Florida LLCs. In addition, start up fees for forming an LLC in Florida is higher than incorporating as a Florida corporation.

The LLC law was changed in 1998. 5.5% income tax was eliminated. LLCs start up fees were lowered. Interests earned in LLCs were protected from any claims filed by creditors. This drastic change in the Florida LLCs law has prompted a increase in the number of businesses registration as LLCs.

Should you form an LLC or incorporate and elect an S Corporation?

An S Corporation eliminates double taxation. However, the S Corporation does not have the flexibility of an LLC in regard to the allocation of income to its members.

An LLC may have an unlimited number of members. However, ownership in an S Corporation is limited to no more than 35 shareholders. Further, an S Corporation cannot have shareholders who are C Corporations, other S Corporations, certain trusts, LLCs, partnerships or nonresident aliens.

LLCs are permitted to own subsidiaries without restriction, while S Corporations are not allowed to own 80% or more of another corporations shares.

You can use our guaranteed services to form a corporation or form an LLC, and save a substantial amount of money you would otherwise pay an attorney. However, if you need legal or financial advice as to the type of corporation or LLC that would best suit your business needs, consult your attorney or financial advisor.

Forming a Florida Limited Liability Company (LLC)

General Incorporation Requirement to form a LLC:

A LIMITED LIABILITY COMPANY is a hybrid form of business entity combining some of the attributes of a corporation with the status of a partnership.

Any entity that transacts business in Florida as a limited liability company is required by Florida Statutes to file Articles of Organization or an application for authorization with the Division and pay the filing fee. These documents must be typewritten or printed legibly in the English language. The professional advice of your legal counsel to ascertain exact compliance with all statutory requirements is strongly recommended.

All limited liability companies must file a Uniform Business Report with the Division each year between January 1 and May 1 and pay the filing fee. Failure to file will result in administrative dissolution of the limited liability company or loss of authorization to transact business in Florida as a foreign limited liability company.

Detailed Information on Forming a Florida LLC

FORM A FLORIDA LLC NOW

Florida Division of Corporations serves as the central agency for registering and incorporating your choice of business entities. You can incorporate with the Divisions yourself or or shop various online business incorporation services. The filing fees for these services vary. Form an LLC - So do your comparison shopping to find the best prices. But if you’d rather incorporate by yourself, the best place to start is: Florida Divisions of Corporations.

At the Florida Divisions of Corporations web site, you will find resources for starting and registering your business. The site will also give you information on self-incorporation. There may be a minimal service charge to incorporate with the Divisions.

Types of Business Entities and Other Incorporation Terms:

Florida Divisions of Corporations: Business Entities

The following summary of the Division of Corporations’ role, and descriptive list of the type of filings and registrations for which it is responsible, will help you determine if the Division provides the particular type of information or service you desire.

The Division of Corporations is a ministerial filing agency which serves as the statewide central repository for business entity filings and annual reports, the statewide central filing office for judgment lien filings, and the statewide central registration office for fictitious names, trademarks and service marks. The Division is also the resource for information contained in these records.

A corporation is a legal entity, created by statute (i.e. the state) with all the rights, privileges and responsibilities of a natural person; possessing the attributes of limited liability, centralized management, continuity of life and fee transferability of interest.

A for-profit corporation is a corporation created for the purpose of conducting business in the widest sense of the term. In Florida, such a corporation may be organized generally under Chapter 607 but may take on special attributes as prescribed by other subservient chapters.

A not-for-profit corporation is a corporation created for religious, charitable, or educational purposes which are generally formed under Chapter 617 but may take on special attributes as prescribed by subservient chapters.

A foreign corporation is a corporation authorized by any jurisdiction other than Florida, to transact business.

An alien corporation is any corporation authorized by any jurisdiction other than; the United States, any state, the District of Columbia, Puerto Rico, Guam or any possession or territory of the United States, to transact business.

A partnership is an association of two or more persons to carry on a business for profit as co-owners. General Partnership: An association of two or more partners each as a general partner with full status of unlimited personal liability and managerial control. Limited Partnership: An association of one or more general partners and one or more limited partners with limited liability and little or no managerial control (i.e. investors only).

A fictitious name is any name other than an individual’s legal name. Registration of that name is required if it is used in business in order to inform the public of who is actually conducting business.

A limited liability company is a hybrid form of entity combining some of the attributes of a corporation with the association tax status of a partnership.

A Trademark or Service Mark is a name or logo adopted by a person or entity to identify the source of a particular product or service provided in commerce. It is distinguished from a fictitious or corporate name in that it must meet a high standard of creativity and originality than do such trade names.

Federal Tax Liens, as authorized by federal law, are required to be filed in the state or local office designated for lien filings. The Division is responsible for filing liens against business entities, estates and trust. The counties record personal real estate liens.