When you build a company, the first thing that you will secure is your personal assets. The solution you want is building Florida LLC that will separate your personal asset from the corporation’s liability. There are also many advantages you can experience such as benefit from the tax and access to partnerships. No matter how good a legal business structure, there are still drawbacks connecting to it. Read more about it in Sun biz website. That is why before you go into a thing, it is better to know what you can get. Learn the good things you can have from the structure and what drawbacks it will affect on your company. Here in this article, you will know what LLC offers you, good and the drawbacks.
What is good about it?
- Less formality. For easy management, the company does not use the minutes and resolutions. But still they hold annual meeting and documented large transactions in business.
- Pass-through taxation. The company sidestep on double taxation that S Corp incurred when it comes to income tax. The members are to report all in LLC FL profits and loss as an individual income tax return.
- Flexible. The company does not delimit the number of members in shareholders and has very flexible structure when it comes to managing. It seeks more opportunity for the members and does not equip 50-50 sharing. It also seeks different types of distribution profit.
What are the drawbacks?
- Minimal case law. Since the company is just a newer business, it is expected to have least case law.
- Initial and the ongoing fees. The company is expensive when you compare to sole proprietorship and most partnerships you can find.
- Ownership transfer. It has a hard ownership transfer compared to the corporation.
These are the good and drawbacks of forming Florida LLC. Post like this will help you evaluate a company before deciding on.