Members Have More Approval Rights Under New Florida LLC Act

By:  Jim Hoctor

The new Florida LLC Act applies to all LLC’s formed in 2014.  As of January 1, 2015, it will apply to all Florida LLC’s.  Under the new Act, any action outside of the ordinary course of the LLC’s business and affairs has to be approved by the members even in a manager-managed LLC.  However, this can be changed by the operating agreement.  Most existing operating agreements do not deal with this.  Therefore, this is one of several changes under the new act that make it important to review and update your LLC’s operating agreement. read more

You moved to Florida, do you need a new Will?

By: Linda Hankins, Esquire 

Not always, but there are several important reasons you should consult with an estate planning attorney to be sure.  Most states will give effect to a Will executed properly in the state where the Will was created.  However, if the testator is a Florida resident when he or she signs a Will in another state, even if the Will is properly executed in the other state, it will not be valid in Florida unless the execution also meets Florida’s requirements for the execution of testamentary documents.  In other words, if a Will is signed in Minnesota at the time the individual is a Minnesota resident, and later the individual moves to Florida, the Will will be valid in Florida.  On the other hand, if a Florida resident executes a Will in Minnesota which satisfies the execution requirements in Minnesota, but not in Florida, the Will is not valid in Florida.  For a valid Will to be admissible to probate in Florida, it must have a self-proving affidavit executed at the same time as the Wills or the person admitting the Will must offer the testimony or a notarized Oath of one of the witnesses to the Will. read more

New Florida LLC Act – Foreclosure Still a Possibility on Interests in Single-Member LLC’s

By: Jim Hoctor

The Florida legislature has passed a bill that completely revises the Florida Limited Liability Company Act.  It is now awaiting the governor’s signature.  The new act keeps the provision added to the Florida Limited Liability Company Act last year as a result of the Olmstead case.  That provision allows a judgment creditor to foreclose on the interest of a member in a single-member LLC, but also specifically limits the remedy of a judgment creditor of a member of a multiple-member Florida LLC to a charging order.  Therefore, you should continue to consider using an LLC formed in Delaware (or any other state that limits a judgment creditor’s remedy to a charging order for both multiple-member and single-member LLC’s) for any single-member LLC that owns real estate or other valuable investment property.  On the other hand, a Florida LLC remains a good choice for a multi-member LLC that will own investment property. read more