The New Limited Liability Company in Florida

In 1998, Florida stopped charging a tax on certain types of businesses called LLCs. This made lawyers reconsider which type of business they recommend to their clients. This article explains how the law changed and compares the benefits and costs of different types of businesses. In 1998 and 1999, new laws were passed in Florida to change the way Limited Liability Companies (LLCs) are taxed. These laws also made it easier to create and manage an LLC. Compared to a Limited Partnership, an LLC has some benefits like being able to have just one member, simpler tax rules, and less personal liability for debts. Plus, it’s cheaper and easier to set up and maintain. Overall, these changes made LLCs a better option for businesses in Florida. An LLC offers better asset protection and allows for special allocation of profits, while an S Corporation has benefits such as tax-free reorganizations and lower self-employment taxes. Additionally, an LLC allows for easier contribution and disengagement, while an S Corporation has advantages when it comes to discharge of indebtedness income. In general, for a business, an LLC is the best choice because it offers flexibility and limited liability. For real estate or estate planning, a limited partnership is usually better to avoid extra taxes. If taxes aren’t a problem, then an LLC might be the way to go. This passage is about different laws and regulations related to business entities like partnerships and limited liability companies. It includes references to specific sections of the Florida Statutes and the Internal Revenue Code, as well as Treasury Regulations. It also discusses tax implications for business entities and their owners. It’s very technical and may be difficult to understand without a background in business or law. These are three lawyers in Florida.

Source: https://www.floridabar.org/the-florida-bar-journal/the-new-limited-liability-company-in-florida/