LLCs have membership interest and not shares. If you want to provide stock or shares, you will need to set-up a different type of business entity. With an LLC, you can add members or remove members. The profits would be distributed to each member. The amount of profit that each member would receive can vary. The members sign a partnership agreement. An LLC is a pass-through business entity. So, you (and other members) would report what you receive from the LLC on your personal income tax. As an LLC, you could break down the ownership interest of each person into “units.” If you’re really set on issuing stock, you could consider a corporation.
Think about what you’re trying to achieve with stock. Are you looking to give it to other founders or co-founders? Are you looking to have it for the purpose of talking to investors? What you’re really wanting to do can help you determine whether you need stock or if an LLC is your best choice.
To answer your question about how to set-up an LLC in Florida:
1. Visit the Florida Secretary of State website. You can find the LLC forms and the filing fee. Even if you’re looking to have an attorney or a third-party company complete your documents, it is important that you review them and also know the filing fee.
2. Complete the LLC documents, file them with the State of Florida, and pay your filing fee. If you’ve paid an attorney or a third-party company to complete your forms, make sure that you review them for accuracy. Ultimately, you’re the one who is responsible for their contents.
3. Put your bylaws in writing. Some things to keep in mind for membership interests include what happens in the event of a death, what happens if someone simply wants to share their interest, and what happens if a co-owner gets married or gets divorced.
4. Think about which states your LLC will conduct business in. You’ll need to register your LLC in those states as a foreign corporation.
Make sure that before you choose your business entity that you talk with a lawyer. A lawyer can guide you and help you make the decision that is in the best interest of you and your business. LawTrades is a legal marketplace and we provide access to legal advice. In fact, we have a service calledwhere you’re able to ask an attorney a legal question for a low flat rate (usually $25) and you’ll get advice tailored to your situation within 48 hours. Hope this helps!