Updated: May 6, 2021
Single Member LLC in Florida: Is it Right for You?
What is a Single Member LLC?
When a business is formed as a single-member LLC, as opposed to a multi member LLC or staying a sole proprietor, the company becomes its own legal entity, with the owner maintain full control of the company. A single member LLC also allows the owner to be protected from debts and liability in the event that someone takes up a legal action against the business.
What you Need to Know about Single Member LLC & How it Differs from a Multi Member LLC
With its many unique aspects, a single member LLC has important ownership, management, and tax implications. First, unlike a multi member LLC, a single member business allows the owner to maintain full control of the company, while also being protected from liabilities. Because an LLC is separate entity from the owner, even sole LLC members do not have to worry about losing assets beyond their investment in the company.
Similarly, a single member LLC does not have to take time to decide which member will manage the business, but rather automatically becomes a de facto manager as a sole owner and manager.
Finally, although a multi member LLC is treated as partnership, a single member LLC is treated as a sole proprietor for tax purposes and its profits and losses pass through the owner.
How to Form a Single Member LLC in Florida?
After you name your LLC, you must file your articles of organization with the state, as well as name a registered agent. Then, you must prepare an operating agreement and register it with the Florida Department of Revenue. After you begin operating your business, you must be sure to file an annual report.
Is a Single Member LLC in Florida the Option for You?
However overwhelming the nuances of creating a single member LLC may seem to be, you are not alone. While online services do exist to help you create an agreement, you will be much more prepared to begin your LLC with the help of an experienced attorney. Call atCause today to schedule an appointment and meet with an attorney who can tailor your document to the requirements of your LLC and appropriate Florida law.