LAKEWOOD RANCH LAWYER
Since 1993, I have been assisting clients, entrepreneurs & small business owners with the formation and operation of their Florida business entity and drafting agreements and contracts on their behalf. Allow me to assist you in the selection of the proper Florida business entity (Corporation, Limited Liability Company, Partnership, etc.) for your business and all necessary business agreements.
Our Florida business and corporate law experience can assist you in starting a new business. We will guide you through the selection of the proper form of businesses or corporate entity, the merits, risks and costs associated with maintaining that entity, and strategies for growing the business once it is operational. This includes:
- Corporation (Corp): An "S" or "C" corporation. While both have the same formalities and management structure an S-Corporation may only have one (1) class of stock, not more one hundred (100) shareholders and none of the shareholders may be a nonresident alien, corporation, partnership, or LLC. Both types of corporations will provide directors and shareholders with liability protection from debts of the entity unless personally guaranteed. The personal assets of a shareholder will not be subject to any legal claim or judgment simply by virtue of being a shareholder.
- Limited Liability Company (LLC): The laws governing LLCs do not require the formalized governance and operating approach required for corporations. LLCs can be managed by a single member, but are flexible enough to mirror the structure of a corporation (which can be useful if the LLC has 3rd party investors). LLCs’ provide personal liability protection to members and managers for the debts and obligations of the company. The LLC operating agreement establishes the rules of the company in a similar fashion to the bylaws and stockholder agreement for a corporation. An operating agreement will confirm material matters, such as the management structure and responsibilities (for instance, including officers for day to day management), voting rights, financial allocations, issuing and/or transferring ownership interests, tax matters, fiduciary relationships, indemnity, dissolution and liquidation of the LLC. An LLC will not restrict the type or number of owners.
COMPARISON OF LLC AND CORPORATION:
Corporation Limited Liability Comp.
Owners: "shareholder" who holds "shares "member" or "interest owner who
of stock" in the entity holds "interest" or a "membership" in the LLC
Governance: "directors" and "officers" "managers" or "company officials"
Formalities: Annual and Special meetings No meetings required
Creditor Protection: Judgment creditor of a shareholder Judgment creditor against a can foreclose on the shareholder's member's interest can only get a shares and take ownership of them "charging order"
Number: Limited to 100 shareholders and No limitations on number or types of owners restrictions
We can assist you and your business with:
- the purchase of an existing business in an asset or stock transaction
- the sale of an existing business
- the financing of an expanding business
- navigating management and operational changes
- drafting and reviewing business contracts and transactional matters
This includes guidance on
(i) structuring efficient sales, supply or licensing agreements, consulting or similar business arrangements, and other essential contracts and relationships, so that your business interests are protected;
(ii) counseling on the fiduciary duties of officers, directors and managers, including the proper powers of board members and managing members, their interaction with management and their responsibilities to shareholders and members; and
(iii) assistance with transfer of business control, whether through development of succession plans, responding to recapitalization offers or handling business sale or dissolution arrangements.
LAKEWOOD RANCH BUSINESS & CORPORATE ATTORNEY
Marc J. Soss, Attorney at Law | (941) 928-0310 | firstname.lastname@example.org