1. What an LLC gives you
A Florida limited liability company separates the property from your personal assets: claims arising from the property generally stay within the LLC. It also offers some privacy, although Florida's public records (Sunbiz) list the company's managers or authorized persons. An LLC can make it simpler to add partners or sell the company interest later.
2. Costs and filings
Forming a Florida LLC costs $125 in state fees, plus an annual report of $138.75 due between January 1 and May 1 (a $400 late fee applies). You need a Florida registered agent and an EIN from the IRS.
A single-member LLC owned by a foreign person must file Form 5472 with a pro forma Form 1120 every year — even with no income. The penalty for not filing is $25,000. Budget for a CPA who handles these filings.
3. Limits and trade-offs
Mortgages are harder: many lenders won't lend to an LLC, or require personal guarantees or DSCR-type loans with higher rates. Homestead tax benefits are not available through an LLC. Some condo associations require extra approvals for entity buyers.
Crucially, a single-member LLC is usually disregarded for US tax purposes — so for a non-resident it generally does not remove US estate tax exposure on the property.
4. Trusts and other structures
A revocable living trust is common for US residents to avoid probate, but it does not reduce estate tax. Non-residents concerned about the 40% US estate tax often look at structures such as a foreign corporation or specific trust arrangements (for example, a foreign grantor trust) designed so the property is not a US-situs asset of the individual.
These structures have trade-offs — for example, a corporation may pay a higher tax rate on a sale and still be subject to FIRPTA. Costs vary widely with complexity. Choose the structure with an international tax attorney before you sign the purchase contract, because changing ownership later can trigger taxes and fees.
5. When an LLC may not be worth it
For a single primary residence financed with a conventional mortgage, an LLC may add cost without much benefit. For rentals, multiple properties or co-investors, it is often worth it. The right answer depends on your country of residence, family situation and plans for the property.
This guide is general information, not legal or tax advice. Laws and programs change — confirm details with a Florida attorney and a US tax professional.
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