If you own rental property in Florida — whether it's a single-family home or multiple units — it's important to consider holding that property in a Limited Liability Company (LLC). This business structure offers crucial legal and financial protections, simplifies management, and will reduce your personal liability exposure.
✅ What Is an LLC?
A Limited Liability Company (LLC) is a flexible business structure governed by Florida Statutes, Chapter 605.
Florida Statute Reference:
Florida Revised Limited Liability Company Act – Chapter 605, F.S.
🔐 Why Use an LLC for Rental Property?
1. Liability Protection
If someone is injured in your rental property, holding the property in an LLC separates your personal assets from business liabilities. Without an LLC, your personal savings, home, and other property could be at risk.
2. Privacy
LLCs can offer an additional layer of privacy. You can list the property address and not your personal one.
3. Estate Planning and Gifting
Rental properties in an LLC can be easier to transfer to family members or beneficiaries through ownership interests rather than deeds.
4. Ease of Management
LLCs require minimal paperwork and allow for pass-through taxation, where profits and losses are reported on your personal return — unless you choose to be taxed differently.
🛠️ The Formation Process in Florida
Setting up an LLC for your rental property in Florida is straightforward:
- Choose a Name
Must be distinguishable and include “LLC” or “Limited Liability Company.” - File Articles of Organization
File with the Florida Division of Corporations at Sunbiz.org. Fee: $125. - Create an Operating Agreement
Highly recommended — especially for multi-member LLCs. - Get an EIN from the IRS
Required for tax purposes and if you hire employees or open a business bank account. - Transfer the Property into the LLC
This step must be done via deed recorded with your local county - Maintain the LLC
File an annual report and keep business finances separate.
How we can help?
Forming and maintaining an LLC the right way is key to protecting yourself. A lawyer can help:
- Set up the LLC properly
- Draft the Articles of Organization
- Draft the initial minutes
- Draft a custom Operating Agreement
- Transfer title without unintended tax consequences
- Structure your LLC for estate or asset protection
- Advise on liability insurance and legal compliance
🏠 Protect Your Property, Your Future, and Your Family
Let us help you create the right structure for your rental business — and make sure it’s done correctly from day one. Contact us today to set up your Florida LLC and protect your investment.