Did you know? - Insight into Limited Liability Companies

One of the main draws of an LLC is that it may limit its members and managers liability to what is in the company. However, the protection from personal liability begins well before the company’s first lawsuit. It begins when the company is registered with the state of Florida. Recently, Members and Managers have been afforded greater protection in an LLC because they are no longer required to be listed on the Article of Organization on the Secretary of State’s website. This allows the Members and Managers to remain anonymous as to the creditor seeking cursory information on who is behind the company. That is until there is a court-mandated request for company information.

A prudent read of the instructions for creating your LLC found on Sunbiz.org reveals this option to disclosure of the Managers and Members of the LLC. Since the registration itself does not indicate who owns and runs the company, it is crucial an Operating Agreement is put in place immediately so the Managers and Members may open necessary bank accounts, enter certain contracts, and conduct business. The only people who will know who is behind the company is whom the company decides to do business with and is required, as a condition of that relationship, to reveal certain company information.

In sum, the only name that needs to be given when creating an LLC is the name of the registered agent, which is the person or entity that will receive service of process on behalf of the LLC.

If you are starting a business, you should speak with an experienced business attorney on the best ways to protect your interests, the company’s assets and your future legacy. You should always work with an experienced attorney to draft an Operating Agreement because those will be the laws of your company, laws you write, as opposed to the State’s laws as written in the Limited Liability Company Act, as revised.