If you’re looking to start a new business in Orlando, FL, and are considering forming an LLC, you first need to understand what an LLC is as well as what the advantages are with choosing this type of business structure. An LLC, or limited liability company, “draws from a combination of principles from [a] partnership and corporate law.” Whether you are a one-man operation or have other individuals working with you, you can start an LLC. The University of Richmond’s Intellectual Property and Transactional Law Clinic says that “LLCs may be owned and managed by one or more individuals, corporations, or businesses that are referred to as a “member” of the LLC.”
A difference between an LLC and a corporation is that LLC’s do not have shareholder investors and they do not issue stock.
Advantages of Forming an LLC
An advantage of an LLC that is worth noting is that these types of businesses “protect you from personal liability in most instances.” This means “your personal assets — like your vehicle, house, and savings accounts — won’t be at risk in case your LLC faces bankruptcy or lawsuits,” according to the U.S. Small Business Administration (SBA). Another advantage of an LLC is that “an LLCs profits are not taxed at the entity level before being distributed to members.” The University of Richmond’s Intellectual Property and Transactional Law Clinic says that “members of the LLC [are required to] pay federal and state taxes on their allocated portion of the LLC’s net profits through their individual tax returns.”
This helps to “[shield] members from personal liability for the debts and actions of the LLC as well as the avoidance of double taxation on business profits.”
Other Characteristics of an LLC
- LLCs “can be a good choice for medium-or higher-risk businesses, owners with significant personal assets they want to be protected, and owners who want to pay a lower tax rate than they would with a corporation.”
- Certain types of businesses typically cannot be LLCs including banks and insurance companies [Source: Internal Revenue Service (IRS)].
Need more information on starting your LLC in Orlando, FL?
If you need more information on LLCs and what it takes to start this type of business, the Orlando, FL business law attorneys at Legal Counsel, P.A. would be happy to speak with you. Anytime a new business is being formed, it is always in the best interest of those forming it to consult with a business law attorney to ensure they are meeting all state and federal regulations and that the type of business they have chosen to form is suitable for the line of work they are in.
If you would like the opportunity to sit down with a business law attorney in Orlando, FL to review some of the legal concerns you might have, you can always contact Legal Counsel P.A.
Legal Counsel P.A. has an office in Orlando which is located at:
189 S. Orange Avenue, Ste. 1800
Orlando, FL 32801
Email: [email protected]