What are the benefits of having an LLC in Florida?

Boasting the fourth-largest economy in the United States, Florida is well-known as a homeland for SMEs and startups. Companies incorporated in Florida enjoy many local tax incentives and gain access to a massive influx of consumers.

What is a Florida LLC?

Many entrepreneurs choose to set up a Florida LLC mostly because of the benefits that this type of business offers regarding flexibility in business structure and ability to protect personal assets.

A Limited Liability Company (LLC) is a popular business structure among Florida entrepreneurs. Under the limited company structure, the owners of the business are not personally liable for any debts or obligations of the company.

There are lots of benefits of having an LLC in Florida

Setting up a Florida LLC is quite easy, entrepreneurs can set up on their own or simply use a company that specializes in corporate services to do it for them. The Florida LLC allows businesses to enjoy the state's incentives for businesses here and is convenient in managing the company's cash flow and taxes.

Below are the benefits of having an LLC in Florida.

Pass-through Taxation

Normally, income tax generated by the company will be levied twice: once on corporate income, and then again on company owners/shareholders’ tax returns after receiving distributed income as dividends.

For an LLC, it will enjoy the "pass through taxation", which means that the business will not be subject to income tax on the revenue from business activities, but the income tax will be “pass-through” to each company owner/member after distributing company income. Members can choose to be taxed as a sole proprietorship, partnership, or S-Corp. This is one of the most remarkable benefits of having an LLC in Florida.

A sole-member Florida LLC can pay taxes as a sole proprietorship, which means that all taxes related to their LLCs will be passed through to the owners on the personal IRS tax return. A multi-member LLC may be taxed as a C-Corp or an S-Corp.

• An S-Corp is a one-time tax entity. The taxpayer is the owner of LLC. S-Corp can only issue 1 type of securities, limited to 100 shareholders.
• C-Corp is a double-tax entity, i.e. corporate tax returns are filed with the relevant authority and taxes are paid at the corporate level. C-Corp can issue many types of securities and has no limit on the number of members.

Choosing how to be taxed is essential to your business, so we recommend you seek advice from One IBC when setting up a company in Florida. One IBC is a trusted corporate service provider which has helped more than 10.000 business clients setting up their overseas business around the world.

Asset Protection

Asset protection is the most sought-after advantage for investors when choosing to form an offshore LLC in Florida. LLC’s members are protected from company liabilities, which means their personal assets will not be affected in the event the company is sued.

LLC is the most sought-after business structure in Florida

The structure of Florida LLC also provides a layer of asset protection for businesses, in case a judgment is placed against an LLC member, the company assets will not be affected by this event.

The requirements for LLCs in each state are different. However, most states in the United States, including Florida, separate liability arising from the activities of the LLC and the personal assets of the owners.

Flexibility

Florida LLCs are very flexible by nature in some aspects compared to corporations, such as the number of members, the type of members (individuals, partnerships, trusts, etc.).

LLC owners also enjoy a lot of flexibility in their business structure:

• A Florida LLC may have one or more members.
• A multi-member LLC can be managed by members of the board of directors.
• A Florida LLC may be run by a person appointed by the members, commonly known as the Director of the company.

In Florida, members of an LLC can select the type of profit contribution. For example, an LLC can decide versatilely how to divide company profits among its members.

Simple company formation and operations

Typically, forming and running a business involves a ton of time-consuming and costly administrative procedures, including drafting company resolutions, company minutes, filing records and many other paperworks.

Floria LLCs are relatively easy to set up and operate with little paperwork or expense. Unlike C-Corp, an LLC does not have to hold annual meetings, create bylaws, and or keep a track record of company minutes and resolutions.

As a result, managing an LLC will be much easier as it requires less administrative procedures. Even so, in our opinion, holding the annual meetings and recording the minutes are recommended for investors when setting up an LLC in Florida.

Simplicity is one of the appealing benefits of an LLC in Florida

All business types have their pros and cons. However, the benefits of an LLC in Florida are very attractive to startups. It is crucial to find an expert to ensure everything is going right before opening an offshore company here.

At One IBC, we have a team of experts to handle your case individually. Get in touch with us today by calling +65 6591 9991 or emailing [email protected] to schedule a consultation. We can give your advice about the best structure for your business.