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Small business does not mean small profits or small risks, but more and more in Miami we find that small businesses retain limited help from business professionals. In fact, some entrepreneurs actually run their own business without incorporating an entity, either LLC or corporation. Some entrepreneurs think that having a dba (doing business as name) shields them from liability… but it does not.
If you own and operate a sole proprietorship or partnership in Southern Florida have you ever considered changing to a limited liability company (LLC) or incorporating? The benefits are numerous.
For one thing you may be able to use limited liability companies and other business entities to protect yourself from liability but what does that mean? Liabilities can come from all angles. Employees, customers, independent contractors and vendors are all possible sources of discord, disagreement and lawsuits. Southern Florida corporate attorneys know how to use the laws of Florida to protect you from the common liabilities of your industry.
You may also be able to save money on taxes using these structures.
Failure to insulate your liability can be costly. For one thing a judgment against you individually could result in liens and garnishment of bank accounts. Do you really want to rely on creditor laws the rest of your life when you could just rely on your entity status? The funny thing is few people realize how inexpensive proper business formation can be. Talk to an experienced Miami corporate attorney to get a flat rate quote, the numbers may surprise you.
Florida limited liability companies really are an amazing alternative to the formalities of a typical corporate formation. Do you understand the differences between a corporation and LLC?
In a corporation, shareholders vote to choose directors. Directors then manage a corporation by choosing officers to do the day-to-day work. Presidents, CEOs, COOs are common examples of officers in a Florida corporation. In a Florida corporation the directors and shareholders both have to have annual meetings and in some cases special meetings may be required. Failure to follow these formalities could result in a corporation’s entity status being disregarded by the Courts. The good news is that you can form an LLC.
An LLC has a lot of the benefits of a corporation such as limitation on liability and flexibility in taxation. Instead of electing directors who choose officers an LLC is owned by members. Members have a choice in how they want to manage an LLC. The default choice in Florida is member managed, meaning the members control the day-to-day operations of the LLC. Preferably though, Members can elect a manager to take care of these issues and be more removed from the day to day business. So an LLC can look like a corporation or sole proprietorship / partnership – its up to the members.
In the modern business landscape the truth is a small business can incorporate or form an LLC with relative ease. The payoff is huge as well. Talk to an experienced Miami corporate attorney to find out how much you can save in the long run.