Single-member LLC VS Multi-member LLC
If you want to form a limited liability company (LLC), one of the most significant decisions is whether to form your business operation as a single-member LLC vs. a multiple-member LLC.
A single-member LLC is the easiest type to establish and maintain. The only ownership requirement is that you must be a natural person, not a corporation or other business entity.
A multi-member LLC has two or more owners. It can also employ people who are not members of the LLC.
Both single-member and multi-member LLCs protect owners’ personal assets because the LLC is a separate legal entity from its members, owners’ personal property is isolated from the liabilities related to the business conducted by the LLC.
For federal income tax purposes, by default, a single-member LLC is treated the same as a sole proprietor, and a multi-member LLC is treated as a partnership. In either case, the LLC’s profits and losses pass through to its owners.
Both single-member and multi-member LLCs have business compliance tasks that they must complete to maintain their business entity and the personal liability protection that it provides. Generally, a single-member LLC will have less-complex requirements to fulfill than a multi-member LLC.
At My Accounting Now we will guide you step by step through the process of opening a new business in Florida. We will review the different types of business structures available so you can make an informed decision, then verify name availability, to help you register with the IRS to determine your business needs and requirements. If necessary, we will also guide you on how to register with the Department of Revenue for state tax registration. Schedule a free consultation with our team by calling 786-228-8689 or emailing info@myaccountingnow.com.