How to set up an LLC for your rental property in Florida

If you’re a landlord or real estate investor in Florida, you might be curious about how to set up an LLC for a rental property. Using a limited liability company (LLC) may help protect your personal assets and can potentially simplify your rental business. But Florida has its own rules and fees that you’ll want to know about before diving in.

In this article, we’ll walk through everything you need to know about forming an LLC for your Florida rental property—from what an LLC actually does for landlords, to the step-by-step process, costs, timelines, and ongoing requirements. Plus, we’ll touch on how LLCs compare to other options like S corps or umbrella insurance, so you can make the best choice for your situation.

What is an LLC and what does it protect you from as a landlord?

An LLC, or limited liability company, is a type of legal business structure that combines some benefits of corporations and partnerships. For landlords, the main advantage is that an LLC is designed to provide a layer of protection for personal assets—like your home, car, and savings—from lawsuits or debts related to your rental property, but this depends on proper use and compliance. Typically, if a tenant sues over an injury or property damage, the LLC’s assets (usually just the rental property) are at risk rather than your personal belongings, but exceptions can apply.

That said, an LLC doesn’t provide blanket protection. It won’t shield you if you personally guarantee a loan, commit fraud, or fail to maintain proper separation between you and your LLC. Also, an LLC doesn’t replace good insurance—so it’s smart to combine your LLC with solid landlord insurance coverage.

To learn more about this topic in general, check out should landlords use an LLC.

Step-by-step: how to set up an LLC for a rental property in Florida

If you decide to form an LLC, here’s a simple overview of the process specific to Florida landlords:

1. Choose a name for your LLC

Your LLC’s name must be unique in Florida and include “Limited Liability Company” or an abbreviation like “LLC” or “L.L.C.” You can check name availability on the Florida Department of State’s business name search tool.

2. Designate a registered agent

Florida requires your LLC to have a registered agent with a physical address in the state. This person or business receives important legal documents on behalf of your LLC. You can be your own registered agent or hire a service. You may want to consider the benefits and drawbacks of each option or consult a professional.

3. Prepare and file articles of organization

Articles of organization are the official documents that create your LLC. In Florida, you file these with the Division of Corporations. You’ll provide your LLC name, registered agent info, principal office address, and the names of the LLC’s managers or members.

Filing can be done online, by mail, or in person.

4. Pay the LLC filing fee

Florida charges a $125 LLC filing fee for processing your articles of organization. We’ll cover more about costs below.

5. Create an operating agreement (optional but recommended)

Florida doesn’t require an operating agreement, but it’s a good idea to have one. It outlines how your LLC will be managed, member roles, profit distribution, and other key details. This helps prevent disputes later.

6. Get an EIN from the IRS

Most LLCs require an Employer Identification Number (EIN) from the IRS for tax purposes and to open a business bank account, but you should verify your specific needs. You can apply for an EIN online for free on the IRS website.

7. Register for state taxes if needed

If your LLC will have employees or collect sales tax (rare for rental properties), you’ll need to register with the Florida Department of Revenue.

8. File your annual report

Every LLC in Florida must file an annual report to keep your business active and update your information. The deadline is May 1 each year, starting the year after your LLC is formed.

How much does it cost to set up an LLC in Florida?

The main upfront cost is the LLC filing fee, which is $125 in Florida. This covers processing your articles of organization with the state.

After that, you’ll pay $138.75 each year for your annual report fee. Missing the deadline can lead to late fees or your LLC being dissolved.

If you hire a registered agent service or a lawyer to help set up the LLC, expect additional fees. Registered agent services typically cost $100 to $300 annually.

Creating an operating agreement yourself is free, but using a lawyer or an online service might cost anywhere from $50 to several hundred dollars.

How long does it take to set up an LLC in Florida?

Filing your articles of organization online with the Florida Division of Corporations generally results in your LLC being approved within 1 to 3 business days. If you file by mail, it can take 5 to 7 business days or longer.

You can check the status of your LLC formation on the Sunbiz website anytime.

Keep in mind, your LLC is not fully operational until you get your EIN from the IRS, which is instant if you apply online.

Articles of organization: what are they and how to file them

Articles of organization are the foundational paperwork that officially create your LLC. They include basic info like your LLC’s name, address, registered agent, and member or manager names.

In Florida, you file articles of organization with the Division of Corporations either online, by mail, or in person. The fee is $125.

Here’s the official page explaining how to file articles of organization in Florida: Florida LLC Articles of Organization.

Do I need a lawyer to start an LLC, or can landlords DIY the process?

Many landlords successfully set up their LLCs on their own using online resources. Florida’s filing process is straightforward, and the state’s website provides clear instructions.

However, you may want to consult a lawyer if your rental business is complex (multiple properties, partners, special arrangements), or if you want to make sure your operating agreement is airtight.

Either way, you don’t have to have a lawyer to start an LLC in Florida, but professional advice can help avoid costly mistakes.

How to get an EIN for an LLC that owns rental property

An EIN is like a Social Security number for your LLC. It’s required for tax filings and opening bank accounts.

You can get an EIN from the IRS for free by applying online at the IRS EIN application page.

The application is quick and you’ll get your EIN immediately once approved.

Do LLCs need annual reports and other ongoing compliance in Florida?

Yes. Florida requires all LLCs to file an annual report each year by May 1. This report updates your contact info and confirms your LLC is still active.

The filing fee for the annual report is $138.75, and if you miss the deadline, your LLC could be administratively dissolved.

Besides the annual report, keep your registered agent info current, maintain proper records, and separate your LLC’s finances from personal funds.

S corp vs LLC for landlords: a quick comparison

Some landlords wonder whether to elect S corporation status for their LLC.

An LLC is a flexible business structure offering liability protection and pass-through taxation. An S corp is a tax election that can apply to an LLC or corporation, potentially reducing self-employment taxes for some owners.

The main pros of an S corp election include possible tax savings, but it comes with stricter IRS rules for payroll and distributions.

For many landlords, a simple LLC without S corp election is sufficient. If you’re considering S corp vs LLC for your rental business, we recommend consulting a qualified tax professional to determine the best option for your specific situation.

LLC vs umbrella insurance for rental property risk management

An LLC provides legal separation between your personal assets and your rental business, but it doesn’t cover everything.

Umbrella insurance is an extra layer of liability protection that kicks in when your underlying policies (like landlord insurance) reach their limits.

To get the best protection, many landlords use both an LLC and umbrella insurance. Learn more about the differences and how they work together in our article on LLC vs umbrella insurance.

For Florida landlords, it’s especially important to have solid landlord insurance given the state’s risks like hurricanes and flooding. Check out our guide to landlord insurance in Florida for tailored coverage tips.

When does an LLC make sense for landlords in Florida?

An LLC often makes sense if you want to:

• Separate your personal assets from your rental property risks  
• Simplify management when you own multiple properties  
• Create a clear ownership structure if you have partners  
• Potentially improve borrowing or sale options  

However, it may not be necessary if you only own one property and have minimal liability concerns, especially if you have strong insurance policies in place.

Remember, forming an LLC is just one part of risk management. Make sure your insurance, lease agreements, and property maintenance practices are also up to par.

Next steps: review your insurance and LLC plans

If you’re thinking about how to set up an LLC for a rental property in Florida, start with the official resources from the Florida Division of Corporations and the IRS.

Then, review your landlord insurance options to make sure your properties and personal assets are adequately protected. For Florida-specific coverage, see our detailed guide on landlord insurance in Florida.

And if you want to learn more about whether you should form an LLC at all, check out this helpful post on should landlords use an LLC.

Finally, consider the risk management benefits of combining your LLC with umbrella coverage by reading our article on LLC vs umbrella insurance.

Forming an LLC can be a useful tool for some landlords, but it requires careful planning and consideration.