Why Florida LLC or Corporation

Why Florida is One of The Best States To Form Your Business

The state of Florida offers some distinct advantages for businesses above and beyond the average state in the country, that causes one to most certainly consider forming a Florida LLC or Corporation.

Benefits of Florida LLC's and Corporations:

• Corporate Income Tax Can be Reduced Significantly (For Foreign C-Corporations Only)
• No Corporate Income Tax (on S-Corporations)
• No Personal Income Tax (As mandated by Constitutional Provision)
• No Property Tax
• No Franchise Tax on Corporate Stock
• No Inventory Tax
• No Tax on Transit Goods (For up to 180 Days)
• No Sales or Use Tax (All Items Produced for Export Outside of Florida)
• Numerous Sales and Use Tax Exemptions (For C-Corporations)
• Numerous Unique Tax Deductions (For C-Corporations)
• Numerous Incentives for Businesses and Business Relocation
• No Disclosure of Shareholders, (Director Disclosure Optional)
• Extremely Limited Government Regulations and Restrictions

MASSIVE FLORIDA ADVANTAGES

• Unlimited Issuance of Shares of Stock - It is common for a state to limit the shares of stock that you can issue. With a Florida corporation, you can simply alter your articles of organization with a minor $35 filing fee. As well state law allows for the issuance of blank check preferred stock, if delineated within the articles of organization as in the state of Delaware wherein it makes the process of issuing new classes of preferred stock much easier.
• One individual For Role - In Florida, one individual can be the director, president, secretary, treasurer, vice-president, ceo, coo, in a Florida corporation.
• Privacy and Anonymity - The only information that is required to be disclosed to the state is that of the initial directors, if you elect to list them in your articles of incorporation as an option item. Stock holder information is not an item of disclosure. No company asset disclosure held in or outside of Florida is required.
• Minimal Formalities and Government Restrictions - Much like the other preferred business states, as discussed in a previous post, if you are looking for less restrictions then this is one of the states to consider.
• Low Annual Fees - As previously mentioned there is no state income tax in Florida for businesses electing subchapter S corporation tax treatment so therefore only an annual report is needed. A $150 annual report fee for corporations and $138.75 for limited liability corporations is all that is required in this instance. Do not be late in your filing as the state imposes a $400 late fee for even a one a day late filing.
• No Individual Liability For Corporate Debts - The scope of the law within the state is essentially and generally that provided no willful violation of the law has ensued, that an individual cannot be held liable for corporate debts. Additionally, the courts have ruled that in the case of co-mingling personal funds or the failure to deposit employee wage taxes, that the corporate veil can be pierced and personal liability can indeed be attached.
• Zero Minimum Capitalization Required - Your LLC or corporation can be funded with as little as $1 to as much as you desire. Of course this lends itself to a greater level of flexibility and control with respect to profits, management, distributions, etc.
• Corporate Meetings Can Be Held Anywhere - You can literally run your business without ever stepping into the state of Florida and have your annual meetings in accordance with your bylaws where you chose.
• Stock Management - As previously mentioned, just like in Delaware, you can issue blank check preferred stock if written into your articles or amended into your articles of organization thus allowing much more flexible stock and company management.

Photo by sheknows.com

**Remember each and every Corporation and LLC actually exists and resides within their bylaws or operating agreement which is the heart and soul of a corporation or llc. Without good, solid by-laws or operating agreement, you really do not have a corporation or llc. 

***This blog is for educational purposes only and as such you are advised to seek out and consult with your legal and tax advisors prior to engaging in any decision making affecting your business.