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What are the differences between a Florida LLC and a Florida S corporation?
Generally, the 2 best choices for small businesses to consider are becoming an LLC or a Florida S corporation. Some differences between LLCs and being a Florida S corporation are:
- "Memberships" v. Stock Issuance: LLCs cannot issue stock, but rather, they offer "memberships." S corporations, on the other hand, can issue stock and are owned by the shareholders.
- Management: A Florida S corporation is managed by its directors and officers, while LLCs are managed directly by the members unless they hire managers.
- Restrictions: A Florida S corporation has some restrictions which are not applied to LLCs. For example, A Florida S corporation is limited to 75 shareholders, while the number of members in a Florida LLC is not subject to any restriction.
- Life Span: A Florida S corporation has an unlimited life span, while LLCs have a limited life span (in most cases around 30 years).
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