Florida’s New Law: Protecting Members and Managers in LLCs

– The Revised Limited Liability Company Act in Florida allows for indemnification of members and managers of LLCs in certain circumstances.
– An LLC may indemnify and hold harmless a person for a debt, obligation, or liability incurred in their capacity as a member or manager, and may advance reasonable expenses, including attorneys’ fees and costs.
– However, the LLC may not provide indemnification for a member or manager for actions involving bad faith, willful or intentional misconduct, knowing violation of the law, improper personal benefit from a transaction, liability for improper distributions, or breach of duties or obligations under the standards of conduct for members and managers. – An LLC can indemnify its members and managers for expenses incurred in their activities on behalf of the company.
– The LLC is allowed to purchase and maintain insurance for a member or manager to cover claims or liability incurred while acting for the LLC.
– The Revised Act allows for indemnification and reimbursement of members and managers as long as they do not violate the Act or breach their duty to the LLC and each other.

https://www.jimersonfirm.com/blog/2013/12/floridas-revised-limited-liability-company-act-part-iv-indemnification-of-members-and-managers/