Building a business from scratch can be an exciting experience. However, from the legal compliance perspective there are issues to address. For example, should the business be formed as a limited liability company (LLC), corporation or partnership.
One of the primary benefits of forming business entities is to protect the owner’s personal assets from business debts. Care needs to be taken to avoid “piercing the veil” of the corporation or LLC both in the formation and operation practices and procedures.
Florida Statutes Chapter 605 (Florida Revised Limited Liability Company Act) governs the formation, operation and dissolution of Florida LLCs. It is an extremely flexible form of business entity with many advantages. Creating and filing Articles of Organization for a Limited Liability Company (LLC) is simple. However, you should consider issues such as whether the entity would best be operated as member-managed or manager-managed. Also, depending on the membership structure, the Internal Revenue Code offers election options on how the entity will be taxed (such as S-Corp, C-Corp, Partnership, Sole Proprietorship, etc.).
Without an Operating Agreement, Florida LLCs are bound by the managing structure provided as a default by Florida Statutes. Limited liability company operating agreements are typically required by financial institutions.
Additional business areas where our law firm can provide assistance include:
- on-going & specialized compliance
- succession planning
- business buy/sell transfers
- asset protection structuring
- winding down a business
Call the law firm of John H. Simmons PLLC today at (561) 288-1300 for a no-charge initial consultation.