Florida LLC for real estate

This guide describes the Florida rules. You can form your LLC in any state we sell, with Coral Filings as your registered agent: see LLC cost by state.

Holding rental property in an LLC

• Buying a property in the LLC's name from the start is the simplest path.
• Moving a property you already own into an LLC means a new deed. In Florida that can trigger documentary stamp tax, especially if there is a mortgage, and can affect your homestead exemption and your loan. Talk to a Florida real estate attorney before you transfer.
• Many investors use one LLC per property or group of properties to separate risk.

Real estate agents and brokerages

Real estate in Florida is licensed through the DBPR Division of Real Estate and the Florida Real Estate Commission. Sales associates work under a broker, and under section 475.15, Florida Statutes an LLC or corporation that acts as a broker must register with the Commission, and its members, officers and directors must hold the required licenses.

An LLC that only buys, rents or sells its own property does not need a real estate license. That exemption (section 475.011) is lost if you pay agents or employees a commission strictly per transaction to deal with the public for you. Before routing commissions to an LLC, check the current commission rules with your broker.

Taxes

Rental income passes through to your personal return by default. Florida has no personal income tax, but short-term rentals may owe Florida sales tax and county tourist development tax.

Forming the LLC in another state

The licenses above are Florida's. We form LLCs in 49 states and Washington, D.C. (Florida included), and corporations in nearly every state, and act as your registered agent in each. Compare fees in LLC cost by state and corporation cost by state.

This page is general information, not legal or tax advice. For your specific situation, talk to a licensed attorney or CPA.