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LLC and General Partnership Comparison

Law Office of David M. Goldman PLLC represents individuals and Florida Businesses in Jacksonville and the surrounding areas in Florida Business law and Florida Business Formation. Our Florida Business Attorneys and Florida Business Lawyers work with clients in to help them choose the correct entity to use when conducting business.

The Florida General Partnership can similar to a LLC in control when its members manage the LLC. If the Florida LLC is manager managed there can be significant differences in the control of the company.

The Florida LLC can be different in respect to the tax effects. If you select the default tax treatment for a Florida Limited Liability Company the members are taxed the as if they had a General Partnership or based upon their percentage of ownership. This can be changed in a LLC Operating Agreement if different allocations of profits and losses are desired in respect to the actual membership interest. The differing allocations are only available when the Florida LLC has not chosen to be taxed as a S-Corp. When taxed as a partnership, the income of the LLC will "Pass Through" to the members and they will be taxed as if they had earned the income themselves.

The Florida LLC has the option to be taxed as a S-Corp. This is accomplished by filing an S election with the IRS in the same manner as with a Corporation.

While a Florida General Partnership offers no protection from liabilities of the business entity, a Florida Limited Liability Company will provide protection of the members' assets from company liability. In addition, if the Florida LLC is structured properly, the business assets can be protected from the personal liability of the members or owners.

The Florida LLC requires more formality than the Florida General Partnership.

If you need help with starting or managing a Florida Business CONTACT our Florida Business Lawyers by email or call us at 904-685-1200 to discuss your situation today.


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