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Highlights of Florida LLC Companies

A Limited Liability Company (“LLC”) is a separate legal entity that offers an alternative to partnerships and corporations by combining the corporate advantage of limited liability with the partnership advantage of pass-through taxation. An LLC is created and comes into existence when articles of organization are filed with the proscribed fees, and accepted by the proper state authority. An LLC may elect corporate “C” style taxation or pass through taxation like the “S” Corporation.

 

  • Limited Liability Companies – The Limited Liability Company shields its members from liability like a corporation, however, certain tax advantages are provided to mimic those of a partnership even more than the S Corporation is flow-through of gains and losses. Unlike an S Corporations, however, the number of members, their citizenship, the rights of the members relative to each other, and other corporate matters are not restricted. Unlike a corporation, the limited liability company is not perpetual, having a life limited to somewhere between 30 and 50 years in most states. In Florida, the limited liability company is currently subject to a 5% tax on its profits that is at odds with its character as an otherwise pass-through entity (like S Corporations and Partnerships); and this tax will hamper its attractiveness until it can be repealed.