How to start your LLC in Florida?

Question

I'm starting my LLC in Florida, and have spoken to a real estate attorney and my tax consultant. They both agree an LLC with my wife and me is the best entity given are situation/finances/assets.

Does anyone have recommendations on whether to use the real estate attorney to draw up the LLC/Operating agreement and/or the estimated cost of doing so? I would do it myself on incfile or some site like that, but would there be a benefit to having the attorney do the filing? I'm not trying to cut corners or save money, but if there is no benefit, then I'd rather save the extra $1,000 or so for my first BRRRR.

I appreciate any feedback/information.

Clint Coons · Answer

Mike makes some excellent points about the asset protection benefits of LLC in Florida and the anonymity benefits of land trusts.  One additional point you need to consider is doc-stamps.  If your property is financed, then moving it directly into an LLC will trigger a transfer tax in Florida.  To avoid the charge, put your real estate into a land trust then assign your beneficial interest to an LLC.  As Mike suggested setting up on your own is possible, but you do not know what you don't know, and a simple mistake like I discussed could end up costing you far more than working with an experienced firm.

Mike S. · Answer

@Jeff Young

You will probably need a registered agent unless you want to be your own and can receive process during working hours.

They are plenty of discount registered agent available online.

You can file yourself your LLC online easily.

However I would suggest that an asset protection, real estate savvy attorney draft your operating agreement as it would be the most important document in case of lawsuit. Don’t use the free templates offered by the registered agent.

Also make sure that your LLC is a multi member. Since Olmsted vs FTC, in Florida single member LLC don’t have charging order protection as sole remedy. Or you can use a FL single member LLC owned by a WY holding LLC to gain the WY charging order.

For anonymity I would also suggest to create a land trust for your property. We have great land trust statutes in Florida. You can create it yourself with the great book from Mark Warda called land trust in Florida. You then do a warranty deed to the land trust. Notify your county appraiser that there is no change in final beneficiary to avoid a reassessment in your property taxes.

Nik D. · Answer

Hi Jeff,

I have a few Fl LLCs.  It's v easy to do yourself on sunbiz.

Just note, file ahead of time as FL LLC filings are on the rise (there's a 2-4 week lead time before approval).

ND

Gary Siver · Answer

@Jeff Young It’s easy to do and you can do it right from the sunbiz website.

How to start your LLC in Florida?

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