As a new entrepreneur in Florida, you have a lot of work to do when starting off on your business venture. One of the first things you must decide is how you want your business structure to look.
For many, LLCs provide a good balance. Depending on what you are looking for in your business venture, an LLC might work for you, too.
Limited liability with LLCs
Forbes discusses how the LLC structure might benefit your business. The biggest reason people go for this option is because of the limited liability. You do not want a business venture to bankrupt you and ruin your personal life or finances. LLCs allow you to keep your business assets separate from your personal assets. This means if your business happens to fail or fall into debt, your personal assets are not at risk. This holds true if your business ends up sued, too.
There is also a lot of flexibility in ownership and management. You do not need a board of directors like a corporation. You do not have the same ownership restrictions. You are not obligated to hold an annual meeting of shareholders. If you are looking for an informal business structure, an LLC fits the bill.
There is also less paperwork. In annual shareholder meetings, there are plenty of reports and recordkeeping requirements. On top of that, corporations must pay annual fees to the state. LLCs are exempt from annual meetings and do not often need to keep records or file reports. In short, if you are aiming for something less formal, more fluid and suitable to a changing environment, LLCs are right for you.