# FL Business Entities Essay Attack

Canonical: https://www.barprepplay.com/attack-outlines/businessEntities/
Byline: BarPrepPlay
Last reviewed: March 12, 2026
Subject: Business Entities
Jurisdiction: Florida-aware

## Step 1. Entity Classification & Formation

- LLC (Ch. 605): articles of organization + operating agreement (oral OK but written recommended)
- Corporation (Ch. 607): articles of incorporation + bylaws; organizational meeting for initial directors
- LP / LLP (Ch. 620): certificate of limited partnership for LP; statement of qualification for LLP
- PA / PLLC (Ch. 621): licensed professionals only; personal liability for own malpractice survives

## Step 2. Operating Agreement / Governance

- LLC defaults (§ 605.0105): equal profit sharing per capita (NOT per capital), equal vote, all members manage unless manager-managed
- Corp governance: board manages; shareholders elect/remove directors; annual meeting required
- Fiduciary duty modification (§ 605.0105(4)): FL has a NON-WAIVABLE floor — good faith cannot be eliminated; care cannot drop below gross negligence
- Compare Delaware: virtually unlimited waiver allowed under DE LLC Act § 18-1101(c)

## Step 3. Fiduciary Duties & Business Judgment Rule

- Duty of CARE: informed, good-faith decision-making; prudent-person standard
- Duty of LOYALTY: no self-dealing, no usurpation of corporate opportunity, no competition (unless operating agreement permits specific categories)
- Director safe harbor (§ 607.0831): no personal monetary liability unless criminal violation, improper benefit, unlawful distribution, or willful misconduct
- Business judgment PRESUMPTION: courts defer if decision was informed, disinterested, and rational

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