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GENERAL INFORMATION
A limited liability company (abbreviated L.L.C. or LLC) in the law of the vast majority of the states of the United States is a legal form of business company offering limited liability to its owners. Often incorrectly called a "limited liability corporation" (instead of company), it is a hybrid business entity having characteristics of both a corporation and a partnership. It is often more flexible, the owners have limited liability for the actions and debts of the company, and it is suitable for smaller companies with a single owner. The primary corporate characteristic is limited liability while the primary partnership characteristic is the availability of pass-through income taxation.
BENEFITS
You Should Always Have A Limited Liability
Limited Liability Corporation in Florida or LLC Florida is one of the main reasons to have a corporation. The corporation is totally different from other business. Since it has separate legal entity the shareholders' personal assets are not at risk for clearing any credit.
Tax Treatment In Florida
Register Florida Corporation or the companies who are registered as corporation in Florida enjoys special privileges on corporate tax rate. The tax rate is totally different for share holders of a corporation. They only have to pay tax on the salaries and incentive they are fetching from the corporation. The corporation sometimes offers stock options to the employees. This will enable the corporation to make the employee more loyal to the company.
Benefits Enjoyed By The Employee Of The Corporation
The employees who are the stock holders of the company enjoy tax deduction on health insurance. They also enjoy tax deduction for travel and other expenses.
Investors Get Easily Attracted To The Corporation
There are different types of corporation in Florida like Florida S Corporation, C Corporation, File Florida Corporation. In all these corporation one thing is common. Once you buy a stock of the corporation you get an ownership in the corporation. These ownership interests make the investor more attractive towards the corporation. There is also another reason which attracts the investor more. The corporation does not get closed if the Board members, the officers and the shareholders leave the business.
Shares Are Transferable
Corporate stocks are free to buy and sold. The corporate is not responsible to see who the shareholders are. The shareholders can sell their stock to the other people. Even after their death their stocks get transferred to his or her heirs. But this transfer of stock is restricted and as well as regulated by federal and state securities law.
DRAWBACKS
Social Security Taxes and fringe benefits. For an LLC, as opposed to a C Corporation, since all income and expenses are passed through to the owners, all such payments are subject to social security tax, no matter how denominated. Different and varied rules may apply to the LLC owners, so it is advised that accounting professionals be contacted.
It does take some time and energy to setup the LLC and register it with the state. There are forms to fill out and a process to go through. In addition, there is a form to send in each year to keep the LLC "alive."
The state will charge you an annual fee for maintaining the LLC. This fee can range from $400 to $1000 a year depending on what state the LLC is registered in. Go to the website for your Secretary of State to learn what the fee is for your state.
PRICE LIST
Prices are included with the State fees.
LLC: $349.00
WE ARE A DOCUMENT FILING SERVICE AND DO NOT GIVE LEGAL OR TAX ADVICE