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Here is some more LLC information

The letters “LLC” stand for limited liability company.

Some people mistakenly believe that the letters LLC can also mean limited liability corporation but an LLC is not a corporation.

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  • Your LLC paperwork will be filed within 1 business day. We will send you an email update with a tracking number.
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  • Within 2 weeks after your registration is finalized we will contact you to schedule your 1 hour tax webinar.

LLCs only satisfy the requirements for construction industryCorporations satisfy the Wrokers comp requirements for both construction and non-construction industries.

Limited liability companies (LLC) has many advantages as a form of business entity:

  • Pass-through taxation – under the default tax classification, profits taxed at the member level, not at the LLC level (i.e., no double taxation).

  • Limited liability – the owners of the LLC, called “members,” are protected from liability for acts and debts of the LLC.

  • With “check-the-box” taxation, an LLC can elect to be taxed as a sole proprietor, partnership, S-corp or corporation, providing much flexibility.

  • Can be set up with just one natural person involved or, in some states, one owner which may be an entity itself.

  • No requirement of an annual general meeting for shareholders.

  • No loss of power to a board of directors (although an operating agreement may provide for centralization of management power in a board or similar body).

  • LLCs are enduring legal business entities, with lives that extend beyond the illness or even death of their owners, thus avoiding problematic business termination or sole proprietor death.

  • Much less administrative paperwork and recordkeeping.

  • Membership interests of LLCs can be assigned, and the economic benefits of those interests can be separated and assigned, providing the assignee with the economic benefits of distributions of profits/losses (like a partnership), without transferring the title to the membership interest.

LLCs enjoys many of the same advantages of a “C” corporation (a standard business corporation so called because it is taxed under subsection C of the Internal Revenue Code), as well as retaining many of the characteristics of unincorporated entities such as partnerships and sole proprietorships. Like a “C” corporation, the LLC offers its members limited liability (a member is generally only liable up to the amount contributed to the LLC), and like a partnership, the LLC’s earnings are not subject to an entity level of tax (only one level of tax imposes directly to the member), whereas, a “C” corporation imposes a double level of tax (entity level and shareholder level) on distributable income.

Generally the LLC entity form should always be used over the “C” corporation form, unless the entity is anticipating an initial public offering.

Like the shareholders of a “C” corporation, the owners/members of an LLC are generally not liable for the debts of the business beyond the extent of their investment. The owners can operate the business with the security of knowing that their personal assets are protected from the entity’s creditors. There are exceptions, such as an instance when an individual member personally guarantees the debts or liabilities incurred by the LLC.

Unlike a “C” corporation, an LLC is treated as a partnership for federal income tax purposes. This can provide a number of important benefits to the owners. Partnership earnings are not subject to an entity-level federal income tax; instead, they “flow-through” to the owners, in proportion to the owners’ respective interests in profits, and are reported on the owners’ individual tax returns (one level of tax). Thus, earnings of an LLC are taxed only once.

LLCs and “S” corporations are similar in many ways. From a tax perspective, both are treated as pass-through entities (no double taxation). Both entities provide limited liability to the owners of the business.

The LLC offers far more flexibility than an “S” corporation. In order to be considered an “S” corporation, a company must meet the following requirements:

  • The entity must not have more than 100 shareholders
  • Shareholders must be U.S. citizens or residents, and must be natural persons, so corporate shareholders, partnerships, and multi-member LLCs are excluded
  • The entity must have only one class of stock
  • Profits and losses must be allocated to shareholders proportionately to each one’s interest in the company
  • Corporate formalities must be followed

While a limited liability company (LLC) offers many advantages over other forms of business entity, there are also some disadvantages. Some of the drawbacks to selecting an LLC over another entity are:

  • Earnings of most members of an LLC are generally subject to self-employment tax. By contrast, earnings of an S corporation, after paying a reasonable salary to the shareholders working in the business, can be passed through as distributions of profits and are not subject to self-employment taxes.

  • Since an LLC is considered a partnership for Federal income tax purposes, if 50% or more of the capital and profit interests are sold or exchanged within a 12-month period, the LLC will terminate for federal tax purposes.

  • If more than 35% of losses can be allocated to nonmanagers, the limited liability company may lose its ability to use the cash method of accounting.

  • A limited liability company which is treated as a partnership cannot take advantage of incentive stock options, engage in tax-free reorganizations, or issue Section 1244 stock.

  • There is a lack of uniformity among limited liability company statutes. Businesses that operate in more than one state may not receive consistent treatment.

  • In order to be treated as a partnership, an LLC must have at least two members. An S corporation can have one shareholder. Although all states allow single member LLCs, the business is not permitted to elect partnership classification for federal tax purposes. The business files Schedule C as a sole proprietor unless it elects to file as a corporation.

  • Some states do not tax partnerships but do tax limited liability companies.

  • Minority discounts for estate planning purposes may be lower in a limited liability company than a corporation. Since LLCs are easier to dissolve, there is greater access to the business assets. Some experts believe that limited liability company discounts may only be 15% compared to 25% to 40% for a closely-held corporation.

Limited liability companies (LLC) are not recognized by the IRS as a taxing entity. So an LLC pays income taxes based on the membership structure of the company. A single-member LLC is considered a disregarded entity, and pays income tax as a sole proprietorship, through the member’s personal tax return. A multiple-member LLC pays income taxes as a partnership.

An LLC can also elect to pay income tax as what the IRS calls “an association taxable as a corporation.” This election is made on IRS Form 8832.

Once we complete your registration filing and email you your approved paperwork, you can obtain your occupational license (Florida business tax) on site at any Tax Collector office within the city/county where your business is located.

Florida requires that an individual, or service company, be responsible for receiving important legal and tax documents on behalf of the LLC.

This service is provided by an “agent” of the LLC who is “registered” within Florida, thus the term “Registered Agent.”

Registered agent is simply a person or service company that is designated to receive documentation on behalf of the LLC.

Any member or manager of the LLC can act as Registered Agent for the LLC. If registering a single member LLC, this mameber can act as regestered agent for the LLC if he or she resides within the state of Florida.

An outside company can also act as registered agent for the LLC. Our affiliate Opus Virtual Offices provides registered agent services. For more information you can access their website by clicking on this link: Opus Servises.

In order to form a limited liability company, articles of organization of a limited liability company must be executed and filed with the Department of State by one or more members or authorized representatives of the limited liability company. The articles of organization shall set forth the following and additional information as required:

1. The name of the limited liability company.

2. The mailing address and the street address of the principal office of the limited liability company.

3. The mailing address and the street address of the principal office of the limited liability company

The articles of organization are executed by at least one member or the authorized representative of a member.

No. Attorney or CPA is not legally required to form an LLC.

LLCs are generally filed with the state and/or county and/or city where you are going to conduct business under the LLC name.

The laws requiring DBA registration extend to LLCs and Corporations. If the company conducts business under any name other than the exact legal name that appears on the LLC’s or Corporation’s formation documents, they are required to register it as a DBA. “Conducting business” can include marketing materials, letterhead, business cards, etc. in addition to actual business transactions. Also, banks generally require a DBA registration prior to opening a business bank account or establishing a line of credit.

There are restrictions on the words that a LLC can contain. However, most of the restrictions are in place to ensure that your LLC name does not mislead the general public or imply that the business is a different type of entity than it actually is. For example, you cannot make your LLC name “Acme Incorporated” if you have not filed the necessary documents with your Secretary of State to legally form a Corporation. Likewise, you cannot include “DBA” in your LLC name if you haven’t yet filed the documents to legally form a DBA.

The LLC registration is valid until Articles of Dissolution are filed with the Division Of Corporations. The LLC will be administratively dissolved if no annual report is filed with the Division Of Corporations. All LLCs registered in Florida must maintain a current mailing address with the Division. Address changes must be made by letter or other written communication to the Division of Corporations.

Upon registration we will email your Articles of Organization. Those will be sent as a .pdf attachment to the email address you list on the online application. You can use those documents for any legal reason to proof the status of your LLC, such as opening a bank account or applying for licenses and permitsNothing will be sent via mail.