Do I have to file as a Foreign LLC in Florida for my rental property?

Asked over 1 year ago - Kissimmee, FL

I have a single-member LLC (formed in NY) that owns property in NY. I purchased a home in Florida last year, and titled it in the name of the NY LLC. I have a short-term rental license for the home. I am now being told, a year later, that I have to register my LLC as a "Foreign LLC" in Florida, and pay a bunch of fees, to continue to rent my home. I explained that I am renting it personally, and collecting rents via my personal account (not via the LLC), but the County says that since the LLC's name is on the deed, that means the LLC is doing business in Florida. I've read some posts that if your only activity is renting a home, that does not count as a "business" activity in certain municipalities. The home is located in Osceola county. Thank you!

Attorney answers (2)

  1. Mohammad Ahmed Faruqui

    Contributor Level 11

    2

    Lawyers agree

    Answered . I believe the county is right.

    No attorney-client relationship implied or accepted without a signed fee agreement. This response is theoretical... more
  2. Barbara Billiot Stage

    Pro

    Contributor Level 19

    1

    Lawyer agrees

    Answered . An individual renting property is not conducting business, but you have set this up as a business and must register with the state as a business. You should not be putting the rent into your personal account because you are defeating the purpose of the LLC. If someone sues you they can go after you personally. The IRS would also penalize you if you are audited and you are reporting the income to the LLC but using it personally without a distribution from the LLC.

    I'm not sure what "short-term" license you received and if it was issued by the state or county, but the Department of Business & Professional Regulations also requires a short-term license and I would think you would have to prove your registration in Florida to obtain.

    Also, if you would need to file suit against anyone, you cannot do so without being registered in the state.

    The amount of the fees are nominal compared to the problems you could encounter. The fees are $125.

    This communication is not intended to create an attorney/client relationship. It is always recommended you consult... more

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