LLC Ownership: What to Expect

LLC Ownership: What to Expect

If this is your first business in Florida,then you’re probably a little unsure about what your day to day life is going to entail as a business owner. This is perfectly natural. LLC ownership comes with a lot of new responsibilities. Running a business is a far cry from working as a typical employee and requires its own unique skill set. Here are some of the more routine tasks that you can expect in your new life as an entrepreneur.

Thankfully, LLC ownership won’t force you to engage in the same formalities demanded of corporations. This lax management style is one of the most attractive aspects an LLC. However, there are certain steps you should take to separate yourself from your business in the eyes of the law, lest you incur personal liability. Perhaps the most critical part of this separation is ensuring that you don’t co-mingle personal and business funds. This means no dipping into your business bank account when your own funds start running dry. You should under no circumstances take a personal loan out from the company, either. Doing so threatens your liability coverage.

Operating Agreement

If your LLC has an Operating Agreement – which you should strongly consider drafting if you don’t already – then that will help you to navigate the ins and outs of running your business and other aspects of LLC ownership. Operating Agreements are essentially roadmaps that set forth the structure and management style of your business, as well as your plans going forward. Be sure to plan for both good and bad situations! Optimism is well and good, but you don’t want your business to be at risk should you have issues with another Member. If you’re a single Member LLC, then an Operating Agreement can help to prove that you aren’t a sole proprietor to the IRS.

Meeting Minutes

Much like your Operating Agreement, the State of Florida doesn’t require limited liability companies to keep Meeting Minutes. Once again, however, it would be a good idea to keep them all the same. Meeting Minutes are the official record of your LLC’s Member Meetings. Think of them like meeting notes. They should contain the names of those present, the names of those not in attendance, the topics discussed, and how the Members voted in the event that a vote was held. This serves to keep everyone in the loop regardless of their attendance or attentiveness and creates a record that can be referenced in the future.

Signing on Behalf of the LLC

LLC Ownership means signing a lot of contracts. While you surely know how to sign your own name, signing on behalf of your business is a little different. It’s important that you sign it correctly, because errors here can open you up to personal liability. When signing for your LLC, write out the full name of the company, including the suffix (LLC, L.L.C., PLLC, etc.). Following the company name, you’ll want to sign your own name, followed by your title. For example, if Bob Smith of Bob Smith PLLC wanted to sign a contract, he’d do so by signing “Bob Smith PLLC, by Bob Smith, Member.”

Hopefully, this has helped set you in the right direction. Don’t worry –everyone is a little shaky when they start something new. With time and experience, running your Florida LLC will be as second nature to you as anything else that you’re passionate about in life.

When launching a business, it’s crucial that you have a solid foundation that will encourage growth. As a firm of entrepreneurs ourselves, we know how to get businesses started off the right way. Hiring an attorney reduces the chance that your company will run into trouble down the line and helps ensure that you’re armed with the information and documents that you need for success. For assistance with starting your business or growing the one that you already have, visit our Service Page or contact us by calling (727) 279-5037.