If you are a member or a manager of a limited liability company (LLC), it is important to know your rights and obligations. If you are thinking about forming an LLC, qualified legal counsel can help. At Stok Folk + Kon, our seasoned commercial law lawyers are familiar with the nuances of these entities. Our team has an extensive business background that has been valuable to clients in Fort Lauderdale and beyond. No matter what issue you are facing in regards to your LLC, we can help.Forming and Protecting an LLC in Florida
You can start an LLC at the outset of your business venture, or you can reorganize a pre-existing entity into an LLC. We have helped clients do both. Forming an LLC in Florida requires following certain procedures. First, you must choose a name for the entity that contains the words “Limited Company,” “Limited Liability Company,” “LC,” or LLC.” Abbreviations of the words “limited” and “company” are acceptable. Next, you must file your Articles of Organization with the state Division of Corporations. Only after this filing is the entity legally created. The LLC must also have a designated agent for service of process within Florida. It must comply with all the relevant tax requirements, and it must file an annual report to maintain its “active” status.
An LLC combines the protection of a corporation with the tax treatment and administration of a partnership. This means that its owners are shielded from personal liability for debts and claims against the entity. There are many advantages to forming an LLC, including:
- Pass-through taxation: Owners can report the LLC’s profits and losses on their individual tax return forms. This method allows for great flexibility with regard to business and taxation strategies and can ultimately lead to significant savings.
- Flexibility: LLCs are permitted to have as many members as desired, and members have flexibility in structuring the management of the company. These entities can choose to elect for any type of distribution of profits. This contrasts with a partnership, in which the profits must be split equally among partners.
- Fewer Housekeeping Requirements: LLCs are not subject to strict rules pertaining to corporate minutes or resolutions. While an annual meeting of members and having written policies are recommended, the overall housekeeping requirements are less stringent than for many other types of businesses.
- Subsidiaries: LLCs are permitted to have subsidiaries without restriction, unlike some other types of entities.
There are also potential disadvantages to forming an LLC. It can be more expensive than a sole proprietorship or partnership, transferring ownership can be challenging, and there is relatively little legal precedent regarding them because this is a new type of business entity. A knowledgeable attorney can help you decide whether creating an LLC makes sense for you.Consult an Experienced Business Lawyer in Fort Lauderdale
Whether you need assistance in establishing an LLC or resolving a related commercial law issue in the Fort Lauderdale area, we are here to guide you through the process. The skilled business lawyers at Stok Folk + Kon will take the time to understand your needs and explore your options. Call us today at (954) 237-1777 or contact us online to arrange a consultation. We proudly represent clients from Hollywood, Fort Lauderdale, and throughout the rest of Florida.