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| LLC Vs Corp Florida | |
1/4/2011 12:00 AM
| Updated on 01/4/2011 - LLC VS INCORPORATION
- LLC VS INCORPORATE
- LLC VS CORPORATION SUCH AS AN S CORP OR A C CORP
Answer: Because you are a sole member/owner, it is better to form / set up an LLC in Florida. It will be easy to run and it has advantages over incorporation of an S or C corporation. |
| LLC vs C Corporation vs S Corporation | Factors to Consider | LLC Limited Liability Company | C Corporation | S Corporation |
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| Ownership | An LLC allows for unlimited number of members allowed | Unlimited number of shareholders | There is usually less than 100 shareholders; only one class of stock allowed and no foreigners are allowed to be shareholders. | | Personal Liability | Liability only for personal actions, but in general, personal liability of the members is protected. | No personal liability of the shareholders | No personal liability | | Taxes | You can choose to be taxed as a corporate entity, otherwise profits and losses are passed through to the members | That is what double taxation is all about:
A Corporation taxed on its earnings and shareholders are taxed on any distributed dividends | In an S Corporation, profits and losses are passed through to the shareholders | | Formation | You need both Articles of Organization and an Operating Agreement | Articles of Incorporation must be filed at the government agency, Bylaws, Resolutions, Stock Certificates,and a Stock Ledger must be drafted. | Articles of Incorporation must be filed at the government agency, Bylaws, Resolutions, Stock Certificates,and a Stock Ledger must be drafted as well as IRS & State S Corporation election. | | Management | The Operating Agreement has terms / clauses describing management, ownership and members' duties and rights | Board of Directors make the big management decisions; Officers such as the president and the secretary have day-to-day managerial responsibility. | Board of Directors make the big management decisions; Officers such as the president and the secretary have day-to-day managerial responsibility. | | Contributions | Each members contributes as agreed and then receives a percentage as agreed. | Shareholders get the stock in the corporation | Organizer issues stocks to first shareholders |
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| This is from a Florida Statute: CHAPTER 608
LIMITED LIABILITY COMPANIES "Articles of organization" means initial, amended, and restated articles of organization of a limited liability company, including initial, amended, or restated articles of merger, if any. In the case of a foreign limited liability company, the term includes all records serving a similar function required to be filed with the Department of State or other official having custody of company records in the state or country under whose law it is organized. |
| An auto repair business must apply for a seller's permit because the merchandise auto parts you are dealing in is subject to sales tax. Sellers or dealers of merchandise auto parts are subject to sales tax are required to obtain a resale license to accept resale certificates when they sell wholesale and produce a resale certificate when buying wholesale.
In addition, LLC auto repair shops must apply for a resale / wholesale ID because when a seller sells retail, he or she needs to charge sales tax. In addition to a seller's permit, you need to register your business.
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| To get your LLC auto repair licenses required to start your business, just click on order, submit your business information, select the documents you need to file, and pay online. We will prepare and file your legal documents.
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| Note that you can get and use a federal tax id number ( which you are required to have anyway if you form an LLC or, if you get a seller's permit in MI or IL, and if you got any partners) if you want to use an IRS federal number instead of you social security number.
You can present your LLC certificate to open a bank account. In the final note, consider forming an llc or incorporating because it does away with the requirement of getting a fictitious name registration.
Unless, of course, your trade name is different from the LLC or corporate name.
And remember, you cannot be in business as long as you don't have any customers to buy your services or products.
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| The registration of an LLC involves LLC Articles involves an application for business license because of business taxes, i.e., business gross income tax, personal property tax belonging to the business must be taxed usually at a flat tax rate.
Second, your use of a trade name requires you to obtain an application to apply and register your trade name by filing a fictitious business name and in most cases publishing a fictitious name.
As mentioned above, you also need a resale / wholesale id because you are dealing in the sale of auto parts that is taxable to the consumers that use the products you are involved in selling or dealing in.
We have the applications, and or electronic access to government registration agencies and you can obtain and get your applications and or the actual licenses and tax ids you need to start your LLC and auto repair business.
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| $99 to $500 depending on the state an LLC is filed. |
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