Choosing the structure of a business will determine how it will be registered, the responsibility of the owners, how taxes are presented, etc. That is why it will be one of the most important decisions to make. There are several alternatives, but this time in Nairalanceblog we explain how to register an LLC in Florida and USA in general .
What is an LLC?
LLC represents the Limited Liability Companies (Limited Liability Corporation). And it is a type of business structure that offers attractive benefits, making it one of the most popular alternatives; especially among small businesses.
It combines certain characteristics of a sole proprietorship with those of a corporation. In addition, it is characterized by being easier to configure than a company. By offering limited liability to owners, along with the tax advantages it affords, many entrepreneurs choose to open an LLC.
The characteristics of an LLC include:
• Most states allow sole ownership of a limited liability company.
• It is also possible that the owners are other LLCs, corporations or foreign entities.
• Winnings are taxed only at the member level.
• Members can choose their own tax classification .
• They must submit annual reports to the Secretary of State.
• They do not have a maximum membership limit.
• There are certain limitations to registering an LLC, such as that banking and insurance entities cannot be formed under this structure.
How an LLC works
First of all, you have to understand that each state has its own regulations for Limited Liability Companies. So the regulations that you must comply with will depend on the place where you are going to register. In the case of federal laws, they are the same for everyone.
Each owner of an LLC is known as a member. When forming the company, the articles of incorporation and the operating agreement must be prepared.
The latter is not always mandatory to present it, it will depend on the state, but it is important to have it because it includes information on the management and operation of the company.
In the event that any of the owners wants to renounce their membership, they need the consent of the others in writing.
How to register an LLC in Florida, USA
To register this type of company it will be necessary to investigate the laws and regulations in the place where it is going to be done. Depending on the type of business you want to open, you will not always need to register it with federal entities. But since it is an LLC, it must be done in the state where it operates.
Not always when you are going to register an LLC it is a new business. It may be a company that already existed under another figure, but now its owners want to change the legal structure .
After finding out the requirements, follow these steps to register an LLC :
• Choose the name. Decide what the business will be called and find out if it is available. There are several tools that allow you to find out if another one already has that name.
• Get a registered agent . In most states it will be necessary to have a registered agent when going to register an LLC. The agent is the one who will receive the legal documents and official papers and then send them to the company. Must be based in the same state as this.
• Create the charter. This document has the basic information of the company such as name, date of incorporation, address, members, registered agent, etc.
• Write the operating agreement. Here it is specified how decisions will be made, the duties and responsibilities of the members, meetings, allocation of benefits, among other data.
• Request the foreign qualification. This is done in case the company is going to have activities in more than one state.
• Payment of fees. Finally, present the documents to the Secretary of State and pay the corresponding fees. These are often expensive and vary from state to state. Registering an LLC in Florida is not the same as in California, find out the costs in advance.
Also do the local registration
The steps above are for registration in the state. But you should also do it with the county or city. In this way it will be possible to request the corresponding licenses and permits to operate in the locality.
It is important that after registering the company you comply with all the requirements of the laws so as not to have problems. Part of the responsibilities that you will have will be to submit an annual report to the Secretary of State.
Registering an LLC in the USA doesn’t have to be complicated. Official entities have enough information that you can get by going to the secretariat of the entity where you are going to form your company.
It is also recommended that you consult with specialists so that you better understand the process of how to register an LLC in Florida.