By Phillip B. Rarick, Weston Business Attorney
A Florida LLC, or limited liability company, is an efficient and inexpensive way to protect your real estate or other investments – if set up and maintained correctly. Here are four key benefits:
A creditor’s exclusive remedy is a charging order if the LLC is multi-member. A charging order is often of little value to a creditor because it means the creditor must wait on the sidelines until the LLC makes a distribution.
The LLC generally requires less paperwork than a Sub S corporation. For example, there is no legal requirement to maintain yearly minutes.
The LLC is more flexible for tax and estate planning. For example, the LLC is by default a partnership. As such, the owner secures a step up in basis upon death which is a valuable tax benefit for the surviving heirs to minimize capital gain.
The LLC provides a higher quality of asset protection than a Sub S Corporation.
This is a short list of benefits provided by the Florida LLC. For a full analysis, consult an experienced Weston business attorney. Let us know if we can help.