LLC Answers

Florida is the state that forms the most limited liability companies over any other state.  This is a combination of Florida being a tax friendly, an asset protection friendly state, a pro business state, and one with lots of real estate activity (an LLC is the ideal vehicle for holding, developing, and/or renting property).

The Florida Limited Liability Company Act is also one of the first to be adopted in the US.  It has been constantly improved throughout the years.

Florida LLC Formation requires that a filing be prepared and submitted with the Department of State.  The filing must contain certain … Continue Reading

One of the unique benefits of a limited liability company over a sole proprietorship is longevity when it comes to the life of a business.

A sole proprietor is inextricably associated with the sole individual owner and so when that owner dies, the business really dies.  It becomes a bit of a legal nightmare to determine how to handle the business of a deceased owner.  Many times, because of this problem, thriving businesses face major issues and sometimes are forced to go out of business.

A limited liability company is a legal person separate and apart from its owners so its life … Continue Reading

Florida forms more limited liability company entities than any other state.  This is a combination of the state being very business, tax and asset protection friendly.

Florida was one of the earlier states to adopt a Limited Liability Company Act back in 1982 and since then, the Florida legislature has made several major changes to the laws to make it even more beneficial for business owners to operate through this type of legal entity.

It is quite inexpensive to form and maintain a Florida LLC.  Current filing fees to get one formed on an expedited basis are around $130 and annual fees … Continue Reading

If you have not seen the press lately, there have been many articles discussing a wave of entrepreneurship by necessity.  Many educated and experienced men and women are finding that in this job market, it may be easier to set up their own business to create a level of income for themselves.

Because a limited liability company is so inexpensive and relatively straightforward to form and maintain, the costs to start a business can be very low.  And the rewards can be significant. While these people start to think about this by necessity, many are finding a true blessing in this … Continue Reading

The answer to this question really depends on the specific circumstances.

One reason businesses create LLC entities is to avoid member personal liability for business contract obligations by having the LLC sign contracts. However, there are possible situations where a landlord can sue a member of an llc lessor such as situations where the landlord has a personal claim pursuant to the terms of the contract, a member personally guarantees the contract, the landlord seeks to “pierce the LLC veil” or in situations where the landlord feels it has a legal claim against the member individually outside of the lease contract.

If … Continue Reading

I often get asked about other services that provide document preparation and filing services to form an LLC or incorporate a business.  And, often, the company BizFilings comes up as they are one of the largest and oldest providers of LLC formation and incorporation services.

BizFilings is the grandaddy of incorporations and limited liability company organizations.  This is their specialty and they have been helping business owners with this service for many years.  In fact, they have been assisting law firms with the same services for much longer.

My company has researched the incorporation services companies on the Internet and we found … Continue Reading

Another benefit of a limited liability company (sometimes referred to as a limited liability corporation) over a sole proprietor business structure is that if an owner in the LLC dies, the business can still continue without any disruption in business operations.

With a sole proprietor, the person is the business and the business is embodied in the person.  Accordingly, if the person/owner dies, so does the business.  A limited liability corporation is its own separate person and is independent of any of its owners.  If one of the owners in an LLC dies, the LLC still remains in existence.

This is an … Continue Reading

Upon first glance, this question may sound strange to most people. How can a limited liability company entity also be a corporation?

But the answer to this is actually YES. You see, an “S corporation” designation is not a legal entity choice. Rather, it is a tax designation under the Internal Revenue Code. Before the existence of the LLC entity, the IRS created the S corporation as a way for a corporation that is a small business to avoid the double taxation of the corporate tax structure.

The S corporation rules require that the legal entity meet a … Continue Reading

The LLC laws of every state have a specific liability limitation provision which basically states that a member or manager shall not be personally liable for business debts, obligations or liabilities merely because he is the owner.

This is a very advantageous benefit because without protection, an individual running a business is completely liable for all business related obligations. However, this law is not a license to be able to unlawful things and hide behind a veil of protection.

So, an individual cannot break the law, commit a fraud or do something unlawful and then claim that he or she was … Continue Reading

Many ask whether an operating agreement for LLC is necessary for a limited liability company. In my opinion, it would be disastrous not to have one. Think of a country without any laws or rules. . . or a school run without any limitations on what administration, students and teachers can do.

A business has a goal of making a profit and in order to do so, the different stakeholders, whether they be owners, managers, employees, partners or even suppliers, need to know how the LLC business operates and what it is authorized to do. Owners need to … Continue Reading