If you plan on starting a new business in Florida, congratulations on taking that first step toward financial independence. The first thing to consider is creating a personal asset protection entity to run your business. And the most common choice is the Florida limited liability company (also known as the LLC). FLORIDA LLC FORMATION PROVIDES PROTECTION If you run a business directly without using a separate entity such as a Florida LLC, everything you have or own is at risk in the event the business gets in trouble with any obligations or liabilities. And it is impossible to avoid this risk because running a business by definition requires that you interact with other people, companies, government entities, banks and others. With every interaction and every business transaction, there comes a risk of potential problems or liability. Before Florida limited liability company was created, this risk was a lot more complicated and costly to manage. This is because the only legal entity available for protection was the corporation. A corporation is a more complicated entity which comes with it more maintenance, paperwork and possibly more fees. However, when the state passed the Florida Limited Liability Company Act, business owners were introduced to an ideal entity for small business. First and foremost, the Florida LLC offered the same solid personal asset protection as the corporation. THE FLORIDA LLC IS A LOW MAINTENANCE AND FLEXIBLE ENTITY Unlike the corporation, the Florida LLC offers simplicity and flexibility when it comes to operating a business. Instead of having to fit into a management structure mandated by laws, business owners can create the ideal environment for their specific business. There are no required annual meetings or a need to maintain a board of directors. Paperwork is minimal. MINIMAL REGISTRATION COSTS While the filing fee can change from, year to year, it is a small fee to pay for what you receive in benefits. OTHER BENEFITS A Florida limited liability company also helps with the many other areas of starting a Florida business. It can help you get more customers and make more sales as legal entities are known to provide a more trustworthy and professional image. Also, the Florida LLC provides the most income tax choices over other structures and allows a lot of flexibility when it comes to structuring the ownership and rights of members.
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