Florida LLC Real Estate Setup

Florida real estate LLCs are common. Starting an LLC is easy and provides several advantages.

If your real estate firm is sued, an LLC may safeguard your personal assets (vehicle, home, money). LLCs are credible and tax-saving.

Easy to start a Florida real estate LLC

Florida’s Department of State accepts Articles of Organization for real estate LLCs. Florida LLCs cost $125.

Step 1, name your LLC.

Real estate LLC formation begins with a firm name. Your company name must fit Florida naming regulations.

Articles of Organization will register your name.

Florida naming requirements:
Name must contain “limited liability corporation” or abbreviation (LLC or L.L.C.)
Your LLC name can’t imply government affiliation (FBI, Treasury, State Department, etc.)

Check Florida for name availability. Online LLC name searches may help you find available company names.

Check whether your business name is a domain. Buy the URL to prevent others from using it.

Step 2:Choose a Registered Agent

Articles of Organization need a registered agent.

Your LLC’s registered agent accepts legal papers like service of process and tax notifications.

Registered agent might be a person or a service. Many company owners choose to employ a registered agent service.

Before hiring a registered agent, consider:

Availability: You must be available 9 a.m.–5 p.m. Monday–Friday at the address you specify.
Archives: If you work from home, you must provide your address.
Privacy: Your relatives or colleagues might serve you a lawsuit.

Step 3: File LLC Articles

To register your Florida LLC, submit Articles of Organization with the state. Online or through mail.

Real estate LLCs should consider S Corp tax status. An S corp might bring tax advantages to your real estate firm.

Step 4:Create an LLC operating agreement

An LLC operating agreement covers ownership and member obligations.

Operating agreements benefit even single-member LLCs.

Your operating agreement should include:

Member duties
New member admissions
Transferring or canceling membership
Distributing earnings and dividends
When will capital be called?
Good-faith manager errors are covered.
Tax deadlines
Members have transferable interest and first refusal on property sales.

Your real estate LLC operating agreement may include clauses that don’t violate Florida law.

step 5:Obtain an EIN

EINs are used by the IRS to identify and tax companies. It’s a business’s SSN.

After Forming an LLC

After incorporating an LLC, you must:

Business bank account. Corporate bank accounts separate personal and business funds. This separation preserves your LLC’s corporate veil (i.e., your limited liability protection).
Transfer property to new LLC. You’ll need to register a deed if you’re transferring property to your new LLC. You may do this yourself or via a title firm. Start by calling a title firm or county clerk.
Lease update. If you transfer a rental property to a new LLC, you must change the lease.
Annually report your Florida LLC. Each year by May 1, file with Florida’s Secretary of State. First annual report following LLC formation.