A Florida Limited Liability Company (LLC) is a legal entity created and governed under the Florida Limited Liability Company Act (F.S. 608.401-608.705). A Florida LLC generally has the same powers, rights and responsibilities of any natural person and can do such things as:
- Own any property in its name such as cash, checking accounts, brokerage accounts, real estate, vehicles, etc.
- Sue or be sued in its name
- Make contracts, guarantees, incur liabilities, etc.
- Lend money, borrow money, invest or reinvest its funds, etc.
- Hire or fire employees, define their duties, set their compensation, etc.
Limited Liability: Members (owners) are not liable for the general debts of the LLC. As a sole proprietor, you are personally liable for any and all lawsuits which may arise in the course of business including acts by your employees or independent contractors.
An LLC can be taxed in any manner it chooses allowing Members to select the tax status that best suits their interests. A Florida LLC electing to be taxed as an S Corporation will generally pay the lowest combined income and employment taxes for its owners and business.
Ownership interests in the LLC are not readily transferable. So, if a Member is individually sued, a creditor can not easily reach the assets owned by the LLC.
- A Florida LLC is considered a distinct person separate and apart from its members.
- A Florida LLC can be formed for “any lawful purpose, not just for business purposes.
- All property titled in the name of a LLC is considered owned by the LLC and not its members.
- A Florida LLC can be managed by its members or elected managers.
- Membership interests in an LLC are not easily transferable or traded as are the shares of a corporation.
- A Florida LLC can have one member (single-member) or more than one member (multi-member)
- A Florida LLC can be taxed in any manner it chooses. An LLC can be taxed as a partnership (if two or more members), a regular corporation, an S Corporation or it can be disregarded (if a single-member).