The limited liability company (LLC) operating agreement is a paper characterizing the design of either an organization or personal assets. It allows every shareholder of the organization to establish relevant rules and regulations concerning the company’s management. The main point of the LLC operating agreement form is that it lets every owner manages inside work in the same way.
Once it is filled out and certified, there are no confusing moments and misunderstandings among the shareholders. The LLC operating agreement can be completed by one member (owner) or by several members according to the existing shares in ownership.
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.
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:
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.
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.
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.
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:
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.