Florida LLC Benefits for Small Businesses

A Limited Liability Corporation (LLC) is designed to offer members limited liability protection from lawsuits and debts while providing favorable taxation options such as pass-through taxation similar to a partnership.

There are the numerous benefits for a small business that forms a LLC in Florida. The state has a friendly regulatory environment and a stable tax policy. Florida has several incentives to encourage organizations to conduct business and to incorporate within the state. These incentives include tax refunds for targeted qualified industries and special tax free zones.

The formation of a Florida LLC may provide your organization with the benefits of corporation type limited liability and the additional benefit of partnership type taxation.Establishing your organization as an LLC in Florida can afford the company the ability to add members and to avoid the “double taxation pitfall” inherent with a standard corporation.

It also provides flexibility in how the company is organized, handles distributions and the way it is managed. As a result, your business may enjoy the flexibility and benefits of a partnership and garner protections from debt and liability similar to those of a corporation.

A Florida LLC has no limits on the number of members. Your organization can have one member. The firm must select a managing member who is normally the figure head of the company and who will be responsible for the management of the organization. Business profits and losses will go to the individual member’s income tax return with no LLC level taxation.

The net profit of the LLC is not treated as income earned by members and therefore is not subjected to the self employment tax. Also, the LLC is not subjected to the same, strict corporate formalities of an S or C corporation. It’s possible for your LLC to be based somewhere else while being organized as a Florida LLC. This allows access to the benefits being afforded Florida Limited Liability Corporations.