How to Form an LLC in Florida

LLC?   INC?   WTF?

I recently had an email exchange with a client about whether and how to form a Limited Liability Company (LLC) in the State of Florida. At the end of our exchange, I wrote "I think I'll do a blog post about this - we can't be the only ones with this problem!".

So without further adieu, here is an excerpt from that email exchange:

You form an LLC by registering with the State of Florida at https://efile.sunbiz.org/llc_file.html. It's actually a very easy process.

It's sometimes easier to make your LLC kind of an "umbrella" with a generic name ([Your Name] Services, LLC or something like that), then you can register a fictitious name (a "DBA") for each entity you operate under the LLC. So you could have DBAs ("Doing Business As") registered to the umbrella LLC such as: 

• Business Name A
• Business Name B
• Some new crazy idea you come up with in the future

That way, you're not forming a new LLC every time you enter a new venture, rebrand,  or branch off into a new area of growth. You just register the new name as a DBA and you're all set - you can open bank accounts and everything.

Once you get your LLC documents, you can apply for your DBAs at https://efile.sunbiz.org/ficregintro.html. You'll normally want to register the LLC as the owner of the fictitious name(s).

And that's really all there is to it. Forming an LLC in the State of Florida couldn't be easier. But why would you want or need to?

First of all, you should check with your tax professional and seek legal advice from a qualified attorney (as my friend Roz likes to say, "I'm no lawyer, but I know who to ask for one!") before forming any type of business venture.

But the fact remains that a Limited Liability Company, or LLC, is the simplest and most pragmatic option for the vast majority of small business owners. An LLC combines the "limited liability" of a corporation with the simplicity of "pass through income". So, as a general rule:

1. Your personal assets are protected from the liability generated by your business activities*, and
2. Any income generated by your business activities simply "passes through" to your personal income for tax purposes.

*According to Wikipedia, "It is important to understand that limited liability does not imply that owners are always fully protected from personal liabilities. Courts can and will pierce the corporate veil of corporations (or LLCs) when some type of fraud or misrepresentation is involved".

Trust me, you do not want to have your corporate veil pierced!

Have you ever been sued or otherwise been subject to liability and had your assets protected by your LLC (or exposed by the lack of one)? Have you ever had your veil pierced? Please feel free to share your experiences by leaving a comment below!