Should You Hold Real Estate in an LLC, S‑Corp, or Trust in Florida?

Real Estate Structures: The Florida Advantage

Florida is one of the hottest real estate markets in the U.S., with record in‑migration, strong demand from retirees, and international buyers fueling growth. The Sunshine State’s lack of income tax, robust asset protection laws, and favorable estate planning environment make it unique. But success depends on how you hold your real estate. The decision between an LLC, S‑Corp, or Trust in Florida shapes your tax outcome, liability protection, and wealth transfer strategy.

Book a confidential consultation with Square Accounting today.

Why Ownership Structure in Florida Impacts More Than Tax

Florida has distinct advantages and challenges:

• No state income tax creates opportunities for entity-based strategies.

• Homestead laws protect primary residences from most creditors.

• Probate is notoriously slow and costly in Florida, making trusts essential to avoid delays.

Without proper structuring, real estate investors and high‑net‑worth buyers risk probate battles, unnecessary taxes, and exposure to lawsuits.

Safeguard your Florida real estate with the right LLC, S-Corp, or trust structure. Book a confidential consultation with Square Accounting today.

Market Trends in Florida Real Estate Holdings

• Florida ranked #1 in the U.S. for net in‑migration in 2023, with more than 600,000 new residents.

• LLC formations surged as investors sought liability protection for short‑term rentals and multifamily holdings.

• Foreign buyers purchased 18% of Florida’s existing home sales in 2023, underscoring the need for structures that allow non‑U.S. ownership.

These trends highlight why Florida investors turn to LLCs and trusts as go‑to structures.

New FinCEN Rule & Florida Implications in 2025

Starting December 1, 2025, the new FinCEN rule requires beneficial owner disclosure for all‑cash residential property purchases through entities or trusts. In Miami and Naples, where luxury cash deals dominate, compliance is now unavoidable. Structuring must balance transparency, compliance, and privacy.

Don’t let probate slow your heirs down. Schedule an estate planning strategy session for your Florida properties now.

LLCs in Florida: The Go‑To Vehicle

Florida LLCs are the premier choice for holding rental and investment properties:

• Pass‑through taxation with no state income tax

• Strong liability protection under Florida’s statutes

• Series LLCs and multiple LLC strategies for isolating property risks

• Flexibility for multigenerational wealth transfers via family LLCs

Compliance note: Florida LLCs require an annual report and registered agent to remain in good standing.

S‑Corps and Florida Real Estate

S‑Corps are rarely used for passive holdings but may benefit Florida developers and flippers:

• Can reduce self‑employment taxes on active income

• Ideal for short‑term property businesses

• Not recommended for long‑term appreciating assets due to loss of basis step‑up

In Florida, S‑Corps are strictly a tax tool, not a privacy or asset protection strategy.

Trusts in Florida: Estate Planning & Privacy

Florida’s probate courts are expensive and time‑consuming, making trusts especially valuable:

• Revocable trusts streamline inheritance and avoid probate.

• Irrevocable trusts can shield assets and reduce taxable estates.

• Trusts preserve privacy—avoiding public probate filings.

For high‑net‑worth Floridians, trusts are the backbone of estate planning.

Asset Protection Under Florida Law

Florida provides some of the strongest protections nationwide:

• Unlimited homestead protection for primary residences (with acreage limits)

• Tenancy by the entirety for married couples

• LLC charging order protections for business owners

When paired with trusts and proper compliance, Florida becomes one of the safest jurisdictions for asset preservation.

Tax Efficiency for Florida Investors

Florida investors benefit from the absence of state income tax, but federal issues remain:

• Estate tax exemption: $13.61M per person in 2025

• Trust taxation: Irrevocable trusts reach the top federal bracket at just $15,200 in income

• Entity selection: LLCs remain optimal for rental income; S‑Corps only for active real estate businesses

From homestead protection to zero income tax, leverage every benefit. Talk to a Square Accounting advisor to design your custom structure.

Estate and Gift Planning in Florida

Florida retirees and snowbirds often face estate tax exposure. Strategies include:

• Funding revocable living trusts to avoid probate

• Gifting Florida LLC interests to children with valuation discounts

• Establishing dynasty trusts to preserve family vacation properties for future generations

Multi‑Property and International Buyers in Florida

International buyers dominate many Florida submarkets, particularly Miami, Orlando, and Tampa. Structuring considerations include:

• LLCs allow foreign ownership with no citizenship restrictions

• S‑Corps are off‑limits to non‑U.S. investors

• Trusts can work for privacy and legacy planning, but require careful tax planning to avoid U.S. estate tax exposure

High-net-worth buyers use layered entities and trusts to preserve assets for generations. Discover how to structure your portfolio for long-term success.

Advanced Structuring for Florida Portfolios

Hybrid strategies are increasingly common: Trust → Florida LLC → Florida Property

This offers:

• Liability protection

• Probate avoidance

• Federal estate tax efficiencies

• Privacy advantages unique to Florida law

With FinCEN’s 2025 reporting rules, investors must prepare now. Let Square Accounting handle your compliance and structuring details.

Real Case Scenarios from Square Accounting in Florida

• Miami investor: Luxury condos held in separate LLCs under a revocable trust to streamline inheritance.

• Naples retiree: Primary residence held in a Florida homestead trust to maximize creditor protection.

• Orlando developer: Flipping profits run through an S‑Corp; rentals safeguarded in LLCs.

Whether it’s a Miami condo, Orlando rental, or Naples estate—our Florida-focused team will build your financial fortress.

Choosing the Right Structure in Florida

Ask:

• Is the property your homestead, a rental, or a flip?

• Do you want to avoid Florida probate?

• Are you a Florida resident or foreign buyer?

• How many properties will you hold across counties or states?

Your answers shape the right entity for your Florida strategy.

Your Florida property is more than real estate—it’s wealth, legacy, and security. Let Square Accounting design the right entity strategy so your investments thrive today and for generations to come.

👉 Schedule your Florida real estate tax and entity consultation with Square Accounting now.

Square Accounting: Florida Real Estate Tax Experts

Square Accounting helps:

• Florida investors design LLC, S‑Corp, and trust structures

• High‑net‑worth buyers leverage Florida’s asset protection laws

• Families avoid Florida probate and estate tax traps

• Foreign buyers navigate U.S. tax and compliance rules

From South Beach condos to Gulf Coast estates, we optimize structures to maximize Florida’s unique legal and tax advantages.

Final Word: In Florida, Structure Is Wealth

Florida offers unmatched opportunities for real estate investors, but the structure you choose determines whether you maximize those opportunities—or risk them. LLCs, S‑Corps, and Trusts each serve a role. The right combination protects wealth, minimizes taxes, and ensures smooth legacy planning.

Schedule your Florida real estate strategy session with Square Accounting today.

Frequently Asked Questions (FAQs)

1. Should I use an LLC for my Florida rental property?
Yes, most Florida investors use LLCs to separate liability from personal assets, protect equity, and simplify pass-through taxation.

2. Can I put my Florida homestead property in an LLC?
No. Florida’s homestead exemption only applies when the property is owned personally or via a qualifying trust. LLCs do not preserve homestead benefits.

3. Why are trusts so important in Florida?
Florida probate is expensive and time-consuming. A living trust allows your real estate to pass directly to heirs without probate, preserving privacy and reducing costs.

4. Do S-Corps work for Florida real estate investments?
S-Corps are rarely used for rentals or appreciating properties. They may work for flips, brokerages, or development projects where active income is generated.

5. How does Florida protect real estate investors from creditors?
Florida offers some of the strongest protections in the U.S., including unlimited homestead protection, tenancy by the entirety for married couples, and strong LLC charging order protections.

6. What about foreign investors buying in Florida?
Foreign buyers can use Florida LLCs to hold property without restrictions. Trusts can also be used, but international tax planning is critical to avoid U.S. estate tax exposure.

7. How does the new FinCEN rule affect Florida investors?
Starting December 2025, all-cash entity or trust purchases must disclose beneficial owners. This will heavily impact Florida luxury and vacation property markets where cash deals are common.

8. Do I need multiple LLCs if I own multiple Florida properties?
Many investors use separate LLCs for each property to isolate risk. However, strategies like series LLCs or layered LLCs may also be considered.

9. What is the best structure for legacy planning in Florida?
A hybrid strategy—Trust → LLC → Property—is often best for high-net-worth buyers. This maximizes liability protection, avoids probate, and ensures smooth generational transfers.

10. How can Square Accounting help?
We specialize in Florida real estate tax and structuring strategies for investors and high-net-worth buyers. From entity formation to compliance and estate planning integration, we design structures tailored to your goals.