...
Spread the love

Single Member LLC In Florida - A Comprehensive Guide

Max Smith

Reading Time: 5 minutes

If your business is entirely owned by you and has no partners, you can opt for a single-member LLC. A single-member LLC in Florida has a few rules and regulations to follow.

In Florida, forming a single-member LLC is comparatively easier. You need to pay around $125, which is considered a one-time payment. This includes the filing fees and registered agent fees.

If you want to know more about how to form a single-member LLC in Florida, stick with me; here I am going to mention every ins and outs you should know.

LLC members are known as members. If your business is registered under an LLC and it has no legal share, you can get a single-member LLC. 

This type of business structure is popular among entrepreneurs and small business owners. It offers liability protection and the flexibility of a sole proprietorship. The owner of a single-member LLC is not personally liable for the company’s debts and obligations, and the business is treated as a separate legal entity for tax purposes.

But are there a set of steps to follow when forming a single member LLC in Florida?  Let’s find out. 

How To Form A Single Member LLC In Florida?

Forming a single member LLC in Florida is quite similar to forming other LLCs here.

However, here I will mention some tips that might make this process easier for you. As; You better be conscious while filing articles of organization. Even preparing an efficient operating agreement regarding the business goal can change the game.

Stick with me to learn each step carefully:

Step 1: Select A Unique And Available Name

Like other LLCs, here you also have to find a distinguishable name; make sure the name is not previously registered to the Florida Department of State. If the name is on record, you can not make that available.

Step 2: File Articles Of organization

You have to collect all the documents before you submit the filings to DOS. Prepare and file the Articles of Organization with the Florida Division of Corporations. You can file online or by mail, and the filing fee is typically around $125. Here the filing fee will be around $100 and the rest $25 will be the fee of the registered agent. 

Step 3: Create An Operating Agreement

An operating agreement is a major key to handling your business. With this, you provide a specific guideline. You can search for a free template of the operating agreement.

A single-member LLC requires the following documentation:

  • Company Information
  • Capital Contributions
  • Profits, losses, distributions
  • Management
  • Compensation
  • Bookkeeping
  • Transfers
  • Certification of Formation
  • exhibits
  • Dissolution

Step 4: Get Your EIN (Employer Identification Number)

EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity. You can browse online to grab an IRS online application. 

Step 5: Register With the Department of Revenue

It’s time to register the single-member LLC. Contact the Florida Department of Revenue to register your LLC. 

Step 6: Apply For Business License

If you want to avail legal rights, apply for business licenses, permits, and registration. In Florida, you can check how to get a business license.

Step 7: File Your Annual Report

You can file your annual report online through the Secretary of State’s website or by mail. Make sure to check the deadline for filing and any associated fees to avoid late penalties.

What is The Cost of Starting SMLLC in Florida?

The Cost of a Florida single-member LLC is a drawback. It can cost around $250 or less than that. However, it can vary depending on the types of LLCs in Florida.

The costing can be categorized in the following way:

Field

Costing

Filing fee

$125

Registered agent fee (if using a registered agent service)

Typically around $50-$100 per year

Operating Agreement

Legal fees vary depending on the attorney

EIN (Employer Identification Number) application (if needed)

Free from the IRS

Benefits of an SMLLC in Florida

Single-member LLCs in Florida can provide you with all the benefits that you are supposed to get as a multi-member LLC. 

Forming and maintaining an SMLLC in Florida is relatively simple and straightforward, with minimal paperwork and compliance requirements.

If you own a single member LLC, it will be treated as a sole proprietorship. You will be enjoying the benefits of passing through taxation and minimum self-employment tax.

Apart from that, you will certainly enjoy other benefits of an LLC. Like; flexibility, professionalism, credibility, and legal rights.

Are Single Member LLCs in Florida Creditors Protected?

If you are aiming to have SMLLC and want creditor protection, it is not a reliable option to grab. Single-member LLCs in Florida do not have the same level of creditor protection as multi-member LLCs.

In Florida, a creditor may be able to pierce the corporate veil and hold the individual member personally liable for the debts.

Drawback Of Single Member LLC In Florida

Before you make any decision, you had better check the disadvantages of single-member LLCs in Florida.

One of the drawbacks of a single-member LLC in Florida is, that you have to pay the initial and ongoing fees.

Also, it may not provide the same level of liability protection as a multi-member LLC. This is more expensive compared to sole proprietorships and general partnerships.

Additionally, single-member LLCs are not eligible for certain tax benefits that are available to multi-member LLCs.

You might not have as much flexibility while changing the ownership in SMLLC.

If you are not willing to go for SMLLC in Florida, check out Corporation vs LLC in Florida. This might give you some clarity on which one you need.

Conclusion​

Forming a single-member LLC in Florida can provide various benefits, including liability protection, flexibility in management, and potential tax advantages. But it has certain drawbacks that you should check on. You better consult a professional before making any decision.

Key Points

  • In the state of Florida, single-member LLCs are treated as a separate legal entity from their owner
  • You will receive similar benefits and advantages that you receive in a multi-member LLC
  • You might get confused between single-member LLCs and corporations in terms of processing and costing
  • SMLLC is costlier than Multi-member LLCs
  • SMLLC is better for someone who is committed to sticking with the business on his/her own for longer.

Frequently Asked Questions

Who Is Liable In Single Member LLCC In Florida?

A single-member LLC can provide you limited liability protection in Florida. If your business experiences any losses, this legal shield will protect you as an LLC member from creditors. 

Are Husband And Wife Considered Single Member LLCs in Florida?

No, the husband and wife will be considered individual members when applying for LLCs in Florida. They will not share the profits, debts, and other legal rights of the registered LLC. Together, they can only be considered as single members when applying to the community property state.

Yes, Double LLC is allowed in Florida. It has even other benefits like you can cut off extra charges while filing the documents. This process will require you to remove all the prior LLC details from the public record.

Max Smith - LLC Formation

He is a seasoned entrepreneur and legal expert at LLC Formation Hub. With a stellar track record in both business and law, Max simplifies the complexities of LLCs. His practical insights, featured on LLC Formation Hub, empower entrepreneurs across the USA. Max merges business finesse with legal acuity to guide businesses toward success.


Spread the love
Scroll to Top
Seraphinite AcceleratorOptimized by Seraphinite Accelerator
Turns on site high speed to be attractive for people and search engines.