Competing in today’s global market can present challenges. Your business location shouldn’t be one of them. That’s why Florida has created a business-friendly environment to enable companies like yours to grow quickly.
Florida understands what it takes to do business and stands ready to welcome you with the talented workforce, top-ranked infrastructure, global connectivity and quality of life your company needs.
You can have peace-of-mind when you locate your business in Florida. The state’s favorable business tax structure, government policies and competitive costs make planning for future growth easy. Florida consistently ranks among the best states for business, thanks to its pro-business state tax policies, competitive cost of doing business and streamlined regulatory environment. The state is proud of its welcoming business climate and competitive advantages.
Forming a limited liability company (LLC) in Florida cultivates the benefits you seek in protecting your personal assets, gaining potential tax advantages and maximizing the credibility the “LLC” abbreviation lends to your business name. But as with any legal business structure, LLCs have their advantages and disadvantages.
Advantages of Forming an LLC in Florida
The Sunshine State carries potential for small business owners seeking asset protection. A Florida LLC combines the liability protection of a corporation with the tax treatment and ease of administration of a partnership.
Forming an LLC in Florida also offers:
Pass-through taxation. LLCs typically enjoy pass-through taxation where the members (owners) report their share of the LLC’s profit or loss on their individual tax returns. Any tax due is then paid at the individual level. Multi-member LLCs file an informational (partnership) tax return for the LLC, while single-member LLCs report all income or loss on Schedule C. Pass-through taxation sidesteps the double taxation incurred by C corporations when income is taxed at the corporate level and again at the individual level if corporate profits are distributed as dividends to owners (shareholders).
Flexibility. LLCs generally have no restrictions on the number of members allowed, and members have flexibility in structuring management of the company. Florida LLCs can also select varying types of distribution of profits. Unlike a common partnership where the split is 50-50, an LLC has room for much more flexibility.
Fewer formalities. The LLC business entity requires no corporate minutes or resolutions, making it easier to manage. Holding annual meetings of members and documenting major business decisions is still recommended, however.
Subsidiaries. Unlike Florida S corporations, Florida LLCs are allowed to have subsidiaries without restriction.