Business Law Palm Beach

Setting up or forming a business in Florida is very easy. Simply go on the Sunbiz website and fill in the information. But determining which corporate entity to choose is a topic to discuss first with a business lawyer. You also discuss the tax implications with your accountant or CPA. What is an S Corp There is no corporate entity called an S Corp. The S Corp is a tax election as compared to a C Corp or other choices like sole proprietor and partnership. It merely denotes how you want your business treated for tax purposes. The S Corp treatment passes the income of the business through the business onto the owner or owners. Thus it is referred to as a pass-thru entity, but it is not a legal entity like the corporation or LLC. What are the legal entities in Florida I can choose for my business There are three recognized business entities in Florida. They are the corporation, the limited liability company, and the partnership. The corporation The corporation is regulated by Chapter 607 ...

Most businesses formed in Florida over the past decade or more are limited liability companies or LLCs. Thus, the question often arises as to whether these LLCs need an operating agreement . The history of the LLC in Florida Before the LLC, the options for business owners were the partnership or the corporation. Partnerships offered little to no liability protection for the owners. Corporations offered liability protection, but only if certain corporate formalities were respected like documented shareholder meetings. Few small businesses complied with those corporate formalities simply because they had only one or maybe two shareholders. As a consequence, many corporations lost the liability protections of the corporation. The LLC was created to fill the gap between the two and to provide business owners with liability protections without so many corporate formalities. An LLC is essentially a hybrid between a partnership and a corporation. LLCs were specifically authorized under Florid...

If you Google whether you should choose the Inc. or LLC for your business, you will likely find scores of blogs and articles on the topic. The corporation denoted by Inc. and the limited liability company recognized by the letters LLC are very close. Basically, the LLC is easier to manage in many respects, but which one fits your business depends on several factors. Put another way, the question of whether to LLC or not to LLC is not an easy one to answer, but any sophisticated businessperson will research the issue as you are now doing. The history of the LLC and the Inc. in  Florida Historically, people entered business ventures through partnerships. An easy example is, I have a horse and you have spices, let us take them on the road to sell the spices and split the profits and so forth. But then larger ventures with multiple partners like voyages to the new world required a vehicle more efficient than the common partnership giving birth to the corporation. The first corporation...