Incorporate or File a Limited Liability Company in The State of Florida

A corporation is a legal business entity which is given many of the same legal rights as an individual. Corporations are formed in order to grant the actual people involved in the business of the corporation limited liability protection. This limited liability protection is one of the many advantages to incorporating. A corporation is incorporated (or formed) under the laws of particular state or country. The corporation is then governed by the laws of that particular state or country. Corporations are owned by shareholders and a board of directors usually makes most of the major decisions.

A limited liability company or L.L.C. is not a corporation. Although some individuals often incorrectly believe the abbreviation “L.L.C.” stands for “limited liability corporation”, it does not. The abbreviation “L.L.C.” stands for “limited liability company”. A limited liability company is a hybrid business entity having characteristics of both a corporation and a partnership. It is similar to a corporation because it provides its owners with limited liability for the actions and debt of the company, but it is taxed more like a partnership. A limited liability company does not have stockholders. It is composed of members. The members are the owners of the company and are usually considered the equivalent of stockholders.

Please contact an attorney or an accountant to further distinguish between these two types of business entities and determine which type of business entity would better suit your needs.