Florida LLC Operating Agreement

The main aim of completing the agreement is to develop personal rules and regulations that the state will secure. General laws make it safe to conduct business, but they can be too broad for your organization. The LLC operating agreement is an excellent opportunity to formulate your own managing norms and make them legally binding.

Another reason to file an LLC operating agreement is the security of your wealth. If the courts or other organizations impose a fine on your enterprise, your private property may be at risk. Compiling an LLC operating agreement allows every shareholder to distinguish between commercial and personal possessions. It is an affordable approach to protect personal property, as you will need to pay only once for filing the form. The costs for the document compilation will be minimal compared to potential losses.

The functional goals of the operating agreement are presented in the Florida Statutes (Section 605.0105). Let us figure out the main statements about the Florida operating agreement.

What is the Purpose of an Operating Agreement?

• Business process introduction
• Control of the LLC’s internal relationships
• Setting ways for updating the agreement
• Determination of duties and rights of the company’s holders

What is the Punishment for Breaching the Operating Agreement?

Punishment for such misconduct should be specified and described in the form.

When completing this document, you have to introduce the LLC data, its holders, and relevant regulations. Here are essential topics to enter in the form:

• Company’s title and founding date, as well as the names of its members
• Personal capital contribution of every member
• Distribution of income and costs among owners
• The procedure of moving through positions inside the company
• How to manage and vote in the company. By voting, all owners or only part of them influence the decision-making process. The weights of their votes may differ according to the agreement. The management can be produced by the members or by the manager.
• How to liquidate the organization

If you have any problems filling out the Operating Agreement, you can use the automatized form constructor on our website.

The operating agreement is not mandatory in Florida, but as stated above, it will simplify your business activities.

Florida LLC Laws and Definition

Let’s pay attention to the concept of LLC in Florida and the laws regulating such organizations.

Creating a limited liability company is one approach to legalize your business. An LLC is a combination of adaptability and limited liability as in a partnership and corporation, respectively. This enterprise’s structure safeguards you and your family from debts and loans imposed on the company.

Like other types of business entities, the LLC has its pros and cons.

Advantages

• Versatility. There are no strict rules on the number of members, distribution of shares between them, and management in the LLC.
• Affiliated enterprises. The government allows creating affiliated structures under the LLC in contrast to the Florida corporations.
• Pass-through taxation. The LLC is not subject to double taxation as a corporation. The holders of LLC report their income as personal tax.
• Less formality. LLC owners do not need to make regular reports and conferences, but they are recommended to do it at least once a year

Disadvantages

• Limitations in property transfer. It is more complicated to transfer ownership in LLC than in a corporation. To facilitate this process, you should outline it in the Operating Agreement.
• High fees. Forming an LLC is more expensive than establishing a partnership.
• Low level of case law security. There are few case laws about LLC as this type of enterprise emerged recently.

LLCs in Florida are governed by Chapter 605 of the Florida Statutes. You can get acquainted with the definitions used in the laws in Section 605.0102. According to these statutes, holders of the limited liability company are detachable from the firm itself. The LLC can have any legal aim, and the company’s lifespan is endless.

Steps to Forming an LLC in Florida

This short guide will help you to create your LLC in Florida. We will describe each step in detail so that you can cope with this task easily. More peculiarities necessary for an LLC establishment in Florida are presented in Chapter 605 of Statutes.

1. Select a Name for Your LLC

According to the law, the company’s name should be unique and different from already existing ones. You can check the availability of a suggested name in a unique database on the website of the Division of Corporations: Florida Department of State. We also recommend looking through the websites and checking the availability of your company’s domain.

Once you create the name, make sure it includes such words as “Limited Company” or “Limited Liability Company.” These collocations may be replaced with “LC” and “LLC,” respectively. Furthermore, the “Ltd.” can overwrite the word “Limited,” and the same is with “Co.” and “Company.” Try to avoid using words and phrases referring to governmental organizations.

2. Assign a Registered Agent

You need to nominate a person or business entity to receive and file your tax returns, documents and do all the paperwork. This individual or entity must perform the business activity in Florida and have a physical address in this state.

3. File the LLC Articles of Organization

The respective Articles should contain:

• Name, contacts, and registered agent’s signature
• Email and address of the LLC office
• Managers’ names and contacts
• Signature of the shareholder or representative person
• Active date of the LLC’s formation

You can file this paper by mail or via email. One also must pay $125 per application form.

4. Develop an Operating Agreement

We described the Operating Agreement’s goal at the beginning of this review. This paper is not essential in Florida, but it is recommended to secure your private possessions.

5. Receive Employer Identification Number

To conduct financial operations legally, you must get the EIN. It is forbidden to form an LLC without the EIN if it has employees. The EIN allows the owners to create a bank account, hire workers, and provide proper taxation. When you do not get the EIN for LLC, the government will treat your entity as entrepreneurship or corporation.

You can send the request for EIN by mail or via the IRS website. This service is free of charge.

6. Make Regular Annual Reports

Every LLC in Florida has to send an annual report to prove its business activity in the state. Such reports should be uploaded online from January 1 to May 1. Charges for the report in this period amount to $138.75, but for overdue submission, there will be an additional $400 fee.

Other Florida Forms
Some other major Florida forms readily available for download here and that can be modified in our hassle-free document builder.

Florida Last Will Florida Living Will Florida Small Estate Affidavit Florida Bill of Sale Florida Power of Attorney Florida Rental Lease Agreement Florida Eviction Notice Florida Promissory Note Florida Non-compete Agreement Florida Prenuptial Agreement Florida Marital Settlement (Divorce) Agreement