Florida Corporation Conversion to a Florida LLC
Doing business in the Sunshine State has its advantages. For example, Florida ranks 5th in the Tax Foundation’s 2010 State Business Tax Climate Index and 3rd in its Unemployment Insurance Tax Index. But merely doing business in the state boasting the longest coastline in the continental US may not be enough. Your corporation’s particular needs may drive you toward a conversion to a Florida LLC.
Florida was one of the last states in the union to widely accept the LLC as a viable business vehicle, having over twice as many corporations as LLC’s as recently as 2003. But since then, the LLC has made great gains in popularity; today the number of LLC’s being Formed nearly matches the rate of Corporation Formation. And it’s no surprise, LLC’s offer the following benefits:
- Simplified accounting – Corporations, especially those taking the subchapter S election, must comply with what can be more complicated accounting requirements than those for LLCs, at the state and federal levels.
- No individual income tax – If operated properly, Florida LLC’s may not be required to pay individual income tax.
- Fewer compliance requirements – Legal requirements are generally less stringent for Florida LLC’s than for Florida corporations. Florida LLC’s are not required to be structured with directorial boards and are not required to hold formal meets or keep track of corporate minutes.
- Limited liability – Florida LLC’s still enjoy the limited liability afforded by Florida corporations.
- Ability to raise capital – While LLC’s do not typically have stock that they can sell, they have the potential to sell “interests” for raising capital, a function Sole Proprietorships do not have.
If your operate a Florida Corporation in need of a conversation to a Florida LLC, you have come to the right place. CorporationMerger.net was designed specifically to quickly and affordably perform such “inter-species mergers”. Contact us today!
