Can I Form a New LLC Specifically to Purchase a Florida Property?
Yes — forming a new LLC specifically for a Florida real estate purchase is common and straightforward. Here is how to do it, what the timeline looks like, and what to have ready before closing.
Can I Form a New LLC Specifically to Purchase a Florida Property?
Yes — forming a new LLC specifically for a Florida real estate purchase is common and straightforward. Many Emerald Coast vacation rental buyers form a new LLC for each property they purchase.
This post is for general informational purposes only and does not constitute legal advice.
The Process
Step 1: Choose a name. The LLC name must be unique in Florida and must include "LLC," "L.L.C.," or "Limited Liability Company." You can check name availability on the Florida Division of Corporations website (sunbiz.org).
Step 2: File Articles of Organization. File Articles of Organization with the Florida Division of Corporations. The filing fee is $125. Processing typically takes 1–2 business days for online filings.
Step 3: Obtain an EIN. Apply for an Employer Identification Number (EIN) from the IRS. This is free and can be done online at irs.gov. The EIN is needed for tax reporting and for the closing.
Step 4: Draft an Operating Agreement. An operating agreement is not required by Florida law but is strongly advisable. It governs how the LLC is managed, who is authorized to sign documents, and what happens if a member wants to exit. A real estate attorney can draft one.
Step 5: Open a bank account. Open a bank account in the LLC's name. This is important for maintaining the LLC's separate legal identity.
Timeline
- Articles of Organization: 1–2 business days (online filing)
- EIN: Immediate (online application)
- Operating Agreement: 1–2 weeks (if drafted by an attorney)
- Bank account: 1–5 business days
Total time from start to ready-to-close: approximately 2–3 weeks.
What to Have Ready Before Closing
The title company will require:
- Articles of Organization (filed with the Florida Division of Corporations)
- Certificate of Good Standing (from the Florida Division of Corporations)
- Operating Agreement
- Authorization resolution (if required by the operating agreement)
- EIN
See our post on documents required for LLC closings in Florida.
FAQ
Does the LLC need to be a Florida LLC?
No. An LLC formed in any state can purchase Florida real estate. However, a foreign LLC (formed outside Florida) may need to register with the Florida Division of Corporations to do business in Florida.
Can I use an existing LLC to purchase the property?
Yes, as long as the LLC is in good standing and the operating agreement permits real estate purchases.
Do I need an attorney to form the LLC?
You can form an LLC without an attorney, but it is advisable to have an attorney draft the operating agreement to ensure it properly addresses real estate ownership and management.
Considering LLC ownership for your Emerald Coast purchase? I can connect you with attorneys who specialize in real estate entity formation.
— Kinsey Haddock P.A., Broker Associate | Coldwell Banker Realty — Panhandle | License #BK3253849
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Kinsey Haddock · Coldwell Banker Realty
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Written by
Kinsey Haddock P.A.Kinsey Haddock P.A. is a Broker Associate and REALTOR® with Coldwell Banker Realty, specializing in coastal real estate across the entire Florida Panhandle — from St. George Island and the Forgotten Coast to Panama City Beach, Scenic Highway 30A, and Destin.