What is a LLC?

Transcript

By Phil Rarick, Weston Business Attorney

A LLC is a limited liability company. It combines the best features of a corporation and partnership and can provide an inexpensive and high quality of asset protection if properly structured and maintained.

Many companies offer to form a Florida LLC for $500 or less. Beware. Generally these companies just file Articles of Organization and send you a blank corporate book. Such LLC’s will provide virtually no protection.

4 Take-Away Points for a Florida LLC

1. The LLC must have a robust Operating Agreement with Ehmann, anti-Olmstead, and other provisions in order to secure charging order protection

2. The LLC must be multi-member: A single member LLC will provide little protection; in Florida it is important that the LLC have two or more members.

3. The LLC should have a separate checking account

4. The LLC should file a separate tax return if multi-member

This is only a short summary. It is important to set up the LLC correctly at the beginning to avoid costly problems later on. Consult with an experienced Weston business and corporate attorney. Let us know if we can help.

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