Investor · Member since 2022 · 186 posts · 155 votes
Hi,
I'm looking for guidance on structuring an out-of-state LLC that owns the beneficial interest in Florida land trusts, uses an out-of-state LLC as trustee, and ways to authorize an out-of-state LLC to do rental business in Florida, if feasible.
If you’re an investor with hands-on experience using this type of structure, or an attorney who advises on multistate LLCs, land trusts, and Florida compliance, I’d appreciate connecting.
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
8mo
@Vicki X. As a real estate investor/owner you should be mindful of landlord/tenant disputes, premises liability/personal injury conflicts, payment/performance related disputes, mechanics liens, title related defects & property condition defects and related disclosures. Rarely will you encounter a conflict that falls outside. Therefore, before you continue down the rabbit hole you're heading you should be able to explain how the structures and asset protection strategies you referenced will prevent any of these occurrences from happening and in the event they do, protect the real estate and the members.
To provide greater context, in my past professional life I worked for a hotel REIT that owned real estate in the billions with significant real estate holdings in FL. The principals didn't feel the need to utilize any of the strategies you appear interested in outside of a separate management company, although the management company managed over 100 hotels (both owned and 3rd party managed engagements). That in itself should make you wonder if what you're pursuing is really necessary or if perhaps you have too many gurus in your ear.
Investor · Collierville, TN 38017 · Member since 2017 · 671 posts · 484 votes
8mo
I’ve structured Florida deals this way and the big thing to understand is that Florida land trusts are privacy tools, not a shield from Florida compliance.
A few practical points from experience:
• The beneficial owner LLC does not need to be Florida-registered by default, but the moment it's actively operating (collecting rent, signing leases, managing vendors), Florida can argue it's doing business in-state.
• Using an out-of-state LLC as trustee is common, but banks, insurers, and some counties will still require Florida qualification somewhere in the stack.
• If you plan to self-manage or control leasing decisions, a Florida-registered management entity (even a simple LLC) often keeps things cleaner and reduces audit risk.
• Most investors underestimate how quickly sales tax, DBPR, and local licensing issues come into play, especially with short-term or mixed-use rentals.
Land trusts work well for title holding + privacy, but they don’t replace proper entity registration or compliance. The structure usually works best when paired with a Florida-based management entity and very clear operating agreements.
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
8mo
Yeah Florida land trusts can get tricky with out-of-state structures. One thing I learned the hard way - make sure your beneficial interest assignment paperwork is bulletproof or you basically lose all the privacy protection. Also worth checking if your home state does series LLCs, might make this whole thing way cleaner. You doing this for multiple properties or just testing it out first?
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
8mo
While on the subject of Anonymity, what is going to stop a claim from being filed? All that's needed is the title owner of the property which is public record. If there's merit to a claim a Plaintiff's attorney will file the claim. Very rare for them to care who the members of the ownership entity area for any claim worth pursuing. Thereafter, why can't your identity be obtained through discovery such as interrogatories or a deposition? Even so, most plaintiff's attorneys who are chasing meaningful claims are going to frame the claim in manner that's covered by insurance because it's the path of least resistance. Alternatively, why can't they obtain a judgment and place a lien on the real estate & cloud title until the lien is paid off? I doubt the asset protection specialists who sell these systems take a moment to explain any of this which is the practical side of real estate ownership and dispute resolution.
Property Manager · Orlando, FL · Member since 2025 · 110 posts · 51 votes
8mo
Why do you want it to be an out-of-state LLC rather than a FL LLC?
We're a RE investment and management firm, and we have helped a lot of clients set up land trusts, but typically they are just held by FL LLCs, so I'm curious to understand the angle here.
Feel free to shoot me a message, I can get you connected with the attorney we always use for land trusts in FL.
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
8mo
Hi Vicki, I understand your concern and desire for privacy, but that makes you an easy target for legal snake oil sellers.
A while ago I asked BP if anyone was ever saved by their LLC and after 60 or 70 responses there was still not a single person that had a good story to tell. And that's just an LLC and not a legal construct.
Here is what I personally do (after a landlord for over 15 years and also beeing on the board of a landlord association, where we are basically the go-to for everything bad that happens to landlords) I personally only have a few very normal LLC's that are in my State - and frankly are required for commercial lending. The first 10 or so properties I have on 30 year fixed loans, so they can't be in an LLC. I know people quit claim deed them after financing all the time, but my position is that this is a violation of the mortgage, because you are removing the collateral, especially if its a multi-member LLC.
The level of asset protection should change with your net worth, but roughly here is what I would do:
$0 to $1 million equity: personal name is fine, make sure you have a good lease, good insurance + umbrella policy. Get a PO box for mailing address, don't use your home address.
$1 to $5 million equity: you probably need an LLC for lending. It makes sense to set up a new LLC for every million of equity or so
$5 to $10 million in equity: time to start think about basic asset protection strategies
Over $10 million in equity: maybe consider some more advanced legal constructs
I know several people with large portfolios, between several hundred and one has almost 5000 units and they all run pretty basic entity structures. So you do what you are comfortable with and I am NOT telling you what you should do, but maybe ask a few people at your local REIA what they are doing
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