The decision to place a business or an investment within a legal entity, such as a Corporation or a Limited Liability Company, is an important often critical aspect of Estate Planning and Asset Preservation. The proper use of one of these legal entities, recognized and licensed by the State of Florida, and the other 49 states, may protect your personal assets from business losses, investment losses and creditors.

Generally, any type of business venture will involve some level of risk. It is usually prudent and the correct business decision to separate our "business affairs" from our "personal affairs." For many, the formation of a corporation, or limited liability company (L.L.C.) will offer the benefits of security, protection and privacy. Either of these legal entities is treated as a separate "person," apart from the owners of the entity. Importantly, if organized correctly, and if managed properly, the owners of the business should be shielded from personal liability. 

The owners of a corporation are referred to as “shareholders,” or “stockholders,” and their ownership is represented in the form of stock certificates. The owners of an L.L.C. are known as “members,” and their ownership is represented by the percentage share of the business. Both of these legal entities are established through the Department of State of the state of Florida. Although, the filing fees differ slightly, the formation process is very similar.

There are important legal and business differences between a corporation and an L.L.C. Generally, most of the tax issues are handled in a similar fashion. However, each entity is allowed certain tax deductions that are not available to the other. Our law office always suggests that a certified public accountant or tax accountant be consulted, or retained, when forming and conducting a business. Further, the administrative requirements often vary between the two entities. Significantly, the level of protection offered by either entity may prove substantial, especially as it relates to real estate investments.

The Law Office of William Christopher Anderson will provide the legal advice that you need in choosing the correct, or preferable, entity. We will then assist you in preparing all the documents necessary to register your entity with the State, establish a strong and binding Shareholders’ or Membership Agreement between the “business partners,” obtain your  Tax  Identification Number from the I.R.S., request a preferred tax status from the I.R.S. (i.e. Subchapter-S tax treatment) and obtain your ‘corporate books’. Moreover, If you so desire, our office can assist you in acting as your own registered agent.