Jacksonville LLC Attorneys Help Business Owners Protect Their Interests
Florida firm establishes limited liability companies for clients
Murphy & Ellis, PLLC in Jacksonville counsels clients from all around Florida regarding the establishment and management of limited liability companies (LLCs). If you’re looking for the right legal entity for your startup or are looking to create a new branch for an existing business, our experienced business attorneys will outline your options and prepare the necessary documents to start an LLC.
What is a limited liability company or LLC?
A limited liability company is a legal entity that enables owners to safeguard their personal assets while avoiding the additional taxes often associated with corporations. Many new and existing businesses have chosen to take advantage of the protection and flexibility provided by limited liability companies. If you’re looking to launch a new venture, our business formation attorneys examine your situation to assess whether an LLC is the right legal entity for you. Should you opt to create an LLC, we make sure it adheres to the regulations set forth by Florida or whichever state where you choose to organize.
Different types of LLCs in Florida
Based on the number of business owners, you can create a single-member or multi-member LLC. You must decide how you want your LLC classified for federal tax purposes. Most members opt to be taxed like an S Corporation, meaning that income passes through the business entity and is taxed on an individual basis. The other choice is to be taxed as a C Corporation, which could subject the LLC itself to taxation.
Pros and cons of an LLC
A key benefit of an LLC is that members are typically not personally liable for business losses. This gives entrepreneurs the freedom to be bold and companies the ability to create subsidiaries when they want to branch out. LLCs are not subject to the stringent rules that apply to corporations so there is more flexibility around the structuring of ownership interests and the company’s operations. Along with pass-through taxation, these benefits lead many to establish an LLC rather than a corporation or partnership.
Before you get started, however, you should consult with an experienced Florida business attorney. An LLC is not the best option for everyone. Large operations with ideas of going public someday might be better off creating a corporation. LLCs also require fees and paperwork that aren’t necessary for sole proprietorships and partnerships.
LLC creation, management and dispute resolution
Should you choose to create an LLC, you must register a business name that clearly identifies its LLC status, file an organizing agreement and name a registered agent. Though the process of creating an LLC in Florida is fairly simple, some business owners choose to establish their legal entity in another state. You are permitted to do so while still operating your business in Florida.
The members of an LLC usually also serve as its managers. However, in larger organizations, day-to-day operations might be handled by managers who are employed by the LLC rather than having an ownership stake. If one member chooses to leave the LLC, their withdrawal must be filed with the state and the operating agreement needs to be adjusted.
In the event that one or more owners want to remove a fellow LLC member against their will, it can be a long and arduous process unless the members already executed an agreement allowing for this type of removal. Often, it can be simpler to dissolve the existing LLC and start a new legal entity without the member you wish to exclude.
Contact a Florida lawyer for a consultation about forming an LLC
Murphy & Ellis, PLLC in Jacksonville provides comprehensive counsel to Florida clients regarding limited liability companies and other business law concerns. Please call 904-342-6009 or contact us online to make an appointment with a knowledgeable attorney. We are located on West Forsyth Street.