So, you’re thinking about striking out on your own in Florida and opening a business. Launching a single-member limited liability company (LLC) is an excellent option. But what exactly is a single-member LLC, and how do you start one? Let’s take a closer look.
What Is a Single-Member LLC?
A single-member LLC (SMLLC) is structurally identical to any other type of LLC. The only difference is that a single-member LLC consists of just one owner. The limited liability protection provided by an SMLLC makes it an attractive entity choice for many would-be business owners. A sole proprietorship (also a one owner entity), on the other hand, does not.
Both sole proprietorships and single-member limited liability companies are one-person enterprises. However, since an SMLLC exists as a legal entity distinct from its owner, many experts view it as a more secure option. This division typically safeguards the individual assets of the LLC’s only member. For this and other reasons, some business owners choose to form an LLC.
Ways To File Your Single-Member LLC
Establishing an LLC is the formal step in making your freelance or business idea a reality. This will help you save money on taxes and protect you from being held personally liable for your business. Here are three ways to file your single-member LLC:
Option 1: Doing It Yourself
Setting up a new single-member LLC in Florida on your own involves the following steps:
- Choose a name for your LLC: In Florida, an SMLLC must have “Limited Liability Company” or “L.L.C.” or “LLC” in its name.
- File the Articles of Organization: By submitting an Articles of Organization to the Florida Division of Corporations, you can establish an SMLLC.
- Create an Operating Agreement: While an operating agreement for a Florida SMLLC is not required by law, it is strongly recommended.
- Comply with other rules and regulations: You’ll need to register for an Employer Identification Number (or EIN) with the Internal Revenue Service. Getting your firm up and running may require additional licenses from various authorities.
Option 2: With the Help of Drafted Legal
For those who have never tried their hand at entrepreneurship before, the prospect of launching their own company can be both thrilling and daunting. You might feel overwhelmed because you don’t know where to start or are afraid of screwing up. You may need help figuring out how to proceed because you are unfamiliar with the legal jargon. For these and other reasons, it’s wise to look for help.
With the help of Drafted Legal, you’ll have access to coaching and vast templates that have been meticulously developed to address everything you need for single-member LLC registration and any future challenges you may face. We’ll help you lay the legal groundwork for yourself and your company so you can take the next step toward realizing your goals without breaking the bank.
Option 3: With a Lawyer
Although legal counsel is not strictly necessary in forming an LLC, doing so may still prove helpful when you’re setting up. Entrepreneurs are also vulnerable to lawsuits from customers, suppliers, shareholders, and competitors. In the event of a legal case, an attorney can act as your defense and help you draft contracts that will stand up in court. A lawyer can help you ensure you comply with the many federal and state requirements that apply to running an LLC. However, it is not always possible for entrepreneurs and startups to afford to hire expensive attorneys. If you’re just starting out, this may not be the best choice for you.
Wrapping Up
Setting up a single-member limited liability company (LLC) is one way for sole proprietors to protect themselves from personal liability. However, the process involves several steps that may seem daunting to an aspiring business owner. At Drafted Legal, we strive to make things easier for you. That’s why we provide coaching and templates for forming an LLC. We can also help with things like obtaining an EIN and drafting operating agreements. With our help, you can concentrate on growing your business.
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