Justia Badge
The Florida Bar - Board Certified
Miami Lakes - Bar Association
Avvo Rating 10.0
Weston Bar Association
Avvo Clients Choice 2016
DC Bar
Indiana State Bar Association
Ullinois State Bar Association
The Virginia Bar Association
Miami Lakes Chamber of Commerce

What are the Benefits of an LLC?

Transcript

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:

  1. 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.

  2. The LLC generally requires less paperwork than a Sub S corporation. For example, there is no legal requirement to maintain yearly minutes.

  3. 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.

  4. 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.