Create a Florida LLC the right way with help from a business attorney.

Limited Liability Company (LLC)

An LLC, or a Limited Liability Company, offers personal liability protection and operational flexibility.

Owners, called members, enjoy protecting their personal assets from company debts. LLCs provide adaptable management structures and profit distributions tailored to members' needs, and from a tax perspective, they benefit from pass-through taxation, simplifying tax obligations.

This structure, blending corporation perks with partnership simplicity, is favored by all types of small businesses and startups for its liability protection, flexibility, and tax advantages.

Corporation (INC)

A corporation is a legal entity separate from its owners, providing limited liability protection and allowing for the sale of stock to raise capital. Shareholders, the corporation's owners, are shielded from personal liability for the company's debts.

Corporations typically have centralized management structures, with a board of directors responsible for major decisions. This ensures efficient decision-making and accountability.

From a tax perspective, corporations may face double taxation, where profits are taxed at both the corporate and individual levels. Despite this, corporations remain popular for their ability to attract investors and facilitate growth.

Doing Business As (DBA)

A "Doing Business As" (DBA) name is a registration that allows a business to operate under a name different from its legal entity. Sole proprietors and partnerships often use it to conduct business under a name other than the owner's or the partnership's official name.

DBAs provide flexibility and allow businesses to establish a distinct brand identity without forming a separate legal entity. They're commonly used for marketing purposes or to create multiple business divisions under one umbrella company.

While DBAs offer flexibility, it's important to note that they do not provide the same level of liability protection as forming a separate legal entity like an LLC or corporation. DBAs typically require registration with the appropriate state or local government agency to ensure compliance with local regulations.

Limited Partnerships (LP)

A Limited Partnership (LP) consists of a general partner managing the business and bearing personal liability and one or more limited partners investing capital with minimal liability. LPs are often favored for passive investment in real estate and private equity industries.

LPs allow for resource pooling and expertise sharing in such industries while mitigating personal liability risks. Limited partners benefit from potential profits without active management responsibilities.

Effective operation of an LP demands attention to detail in drafting partnership agreements and adhering to state regulations governing formation and operation. Clear delineation of roles, responsibilities, and profit-sharing arrangements upfront empowers LPs to manage expectations and mitigate partner disputes, ensuring smooth operation and legal compliance.

Limited Liability Partnerships (LLP)

A Limited Liability Partnership (LLP) is a business structure that combines a partnership's flexibility with a corporation's limited liability protection. In an LLP, partners are shielded from personal liability for the debts and obligations of the partnership, except for their own misconduct or negligence.

LLPs are commonly favored by professional service firms such as law, accounting, and consulting practices, where partners wish to retain control over the business while limiting their personal liability exposure.

This structure allows partners to enjoy the benefits of partnership, such as pass-through taxation and flexibility in management, while also providing a layer of protection for their personal assets.

Nonprofit

A non-profit organization (NPO) operates for charitable, educational, religious, or social purposes rather than profit. It may include charities, educational institutions, and social welfare organizations.

Board directors or trustees govern non-profits and must use their resources for public benefit. Revenue is generated through donations, grants, and fundraising, with surplus funds reinvested into the organization's mission.

Forming a non-profit involves registering with state and federal authorities and obtaining tax-exempt status. This status allows tax-deductible donations and certain tax exemptions.

Non-profits must maintain accurate financial records, file annual reports, and comply with laws. Ethical practices and effective management ensure their success and sustainability.