Buying Florida Property Through an LLC or Trust: Homestead, Financing, Insurance and Privacy Trade-Offs

Buying Florida property through LLC ownership sounds like a simple way to add privacy and protection. In practice, it changes your property taxes, your loan options, your insurance and even the tax you pay on a later transfer. A land trust and a revocable trust each bring their own trade-offs too. This guide compares the three common ways to hold title in Palm Beach County: your own name, a trust or an LLC. It is written for investors and second-home buyers, so you can ask better questions before you sit down with an attorney.

Key takeaways

• An LLC cannot claim the Florida homestead exemption. A home you live in full time usually belongs in your own name or a qualifying trust.
• Fannie Mae buys loans made to people, plus certain revocable trusts and land trusts. It does not list LLCs as eligible borrowers, so LLC buyers usually need a different loan type.
• Moving a mortgaged home into an LLC can trigger Florida documentary stamp tax on the loan balance.
• Since 2026, U.S. companies no longer file beneficial ownership reports with FinCEN. However, Sunbiz filings are still public.
• Privacy from an LLC or land trust is partial. Lenders, title companies and courts can still learn who owns the property.

Three ways to hold Florida property

Most buyers take title in their own name, alone or with a spouse. That is the simplest choice, and it keeps every homestead and financing option open. The trade-off is that your name sits on the deed in the public record.

A trust is the second option. With a revocable living trust, you usually act as trustee and beneficiary while you are alive. A Florida land trust is different. A trustee holds title, and the beneficiary's name does not appear on the deed. Investors often use land trusts for that reason.

The third option is an LLC. Here the company owns the property, and you own the company. Investors like LLCs because they can separate one rental's risks from their other assets. Still, an LLC is a business, so it comes with filings, fees and rules that a person does not face.

Homestead: the biggest cost of holding Florida property through an LLC

Florida's homestead exemption can cut up to $50,000 from the assessed value of a primary residence. Also, the Save Our Homes rule caps yearly increases in a homestead's assessed value at 3 percent or the change in CPI, whichever is less. Non-homestead property gets a 10 percent cap instead.

An LLC cannot claim either homestead benefit. Section 196.031 ties the exemption to a person who holds legal or beneficial title and makes the home a permanent residence. An LLC is a company, not a resident, so if you put the house you live in into an LLC, you can lose the exemption and the 3 percent cap. Over several years, that gap can add up to real money on a Palm Beach County tax bill.

Trusts work better here. Under section 196.041 of the Florida Statutes, a person who holds a beneficial interest for life can still qualify, as long as they live in the home. Revocable trusts often meet that test. If you are thinking about a trust for your main home, our guide to buying or selling a home held in a trust covers the closing side.

Homestead also carries creditor protection under the Florida Constitution. That protection is tied to a person's residence, so moving the home into a company can weaken it. For a rental or a second home, none of this applies, because neither one qualifies for homestead in the first place.

Financing Florida property through LLC ownership

Lending is where many buyers get surprised. Fannie Mae's Selling Guide says it buys mortgages made to natural persons. It allows a few exceptions, including revocable trusts and, on a negotiated basis, land trusts. LLCs are not on that list.

So a buyer who wants to close in an LLC name usually needs a different product. Common choices include:

• A DSCR loan, which looks at the rent the property earns rather than your personal income.
• A portfolio loan from a bank that keeps the loan on its own books.
• A commercial loan, which often carries a shorter term or a balloon payment.

These loans often cost more than a standard 30-year mortgage, and many still require a personal guarantee. In other words, the LLC may not shield you from the loan itself. For a deeper look at these programs, see our guide to loans for rental property.

Some buyers close in their own name with a conventional loan and then deed the property to an LLC. Be careful here. Most mortgages contain a due-on-sale clause, so a transfer without the lender's consent can give the lender the right to call the loan. Ask your lender in writing before you move title.

Doc stamp traps for Florida property owned through an LLC

Florida charges documentary stamp tax on deeds at 70 cents per $100 of consideration. Many owners assume a transfer to their own LLC is free, because no money changes hands. That is not always true.

Under section 201.02, consideration includes the amount of any mortgage on the property, whether or not anyone assumes the debt. So if you deed a home with a $400,000 mortgage into your LLC, the state can treat that $400,000 as the price. At 70 cents per $100, the tax on that example would be $2,800.

There is also a three-year look-back. Florida treats an entity that receives property for less than full value from its owner as a "conduit entity." If you then sell an interest in that entity within 36 months, doc stamp tax can apply to what the buyer pays for that interest. As a result, LLC planning and resale timing need to be reviewed together.

Transfers into a revocable trust follow their own rules and are often handled differently. In any case, have the closing agent or attorney confirm the tax before you record any deed.

Insurance, title and the paperwork behind an LLC

The name on your insurance policy should match the name on the deed. If an LLC owns a rental, the homeowners policy usually changes to a landlord or dwelling policy written to the company. Liability coverage matters even more, because an LLC is only one layer of protection. An umbrella policy is a common second layer.

Title insurance needs attention too. When you move a home from your name into an LLC, ask the title company whether your existing owner's policy still covers the new owner. If not, the company may offer an endorsement or a new policy.

Then there is upkeep. Florida LLCs file an annual report with the Division of Corporations. For 2026, the LLC fee is $138.75, and filing after May 1 adds a $400 late fee. Miss the deadline long enough, and the state can dissolve the company. Many owners also pay a registered agent and keep a separate bank account for each LLC.

How much privacy does owning Florida property through an LLC give?

Privacy is the main reason many people ask about buying Florida property through an LLC or a trust. A Florida land trust keeps the beneficiary's name off the deed. An LLC puts the company's name on the deed instead of yours. Both make a casual search harder.

Still, the privacy has limits. Every Florida LLC appears on Sunbiz, the state's public business database. The annual report lists a registered agent and the people who manage the company. Unless you use a manager or agent service, your name may show up there anyway.

Federal rules have shifted, too. FinCEN now says U.S. companies are exempt from beneficial ownership reporting under the Corporate Transparency Act. Separately, FinCEN's residential real estate rule took effect March 1, 2026. It requires certain all-cash transfers of homes to entities and trusts to be reported by a settlement agent. So an all-cash LLC purchase still creates a federal record, even if the public cannot see it.

Finally, lenders, insurers, title companies and courts can all learn who stands behind an entity. An LLC can slow a nosy neighbor down. However, it will not hide you from a lawsuit or a lender.

Which structure fits your Florida property?

There is no single right answer, but some patterns hold. Here is a simple way to sort the options:

• Your full-time home: your own name or a revocable trust usually keeps homestead savings, the 3 percent cap and the best loan terms.
• A second home you use yourself: your own name often makes financing easier. An umbrella policy can add liability coverage.
• A long-term rental: an LLC can make sense, especially if you own several properties. Expect DSCR or portfolio financing, or buy with cash.
• A privacy-sensitive purchase: a land trust or an LLC can keep your name off the deed. Just know that the protection is partial.

Rental math matters as much as structure. For example, our West Palm Beach market page shows a median asking rent of $2,250 across active rental listings, according to Pure Equity's MLS data as of October 1, 2026. Those numbers change nightly, so check them before you run your own numbers.

Frequently asked questions

Can I get homestead on Florida property held through an LLC?

No. An LLC is not one of the owner types the homestead statutes allow. If you live in the home full time, holding it in your own name or a qualifying trust is usually the way to keep the exemption.

Can I get a regular mortgage to buy Florida property through an LLC?

Usually not. Fannie Mae lends to people and certain trusts, not LLCs. Most LLC buyers use DSCR, portfolio or commercial loans, which often cost more and may need a personal guarantee.

Do I owe doc stamps when I move my home into my own LLC?

You can. Florida counts any mortgage on the property as consideration, so a mortgaged home can trigger tax at 70 cents per $100 of the loan balance. A free-and-clear transfer may owe little, but the three-year conduit entity rule can apply later.

Is a land trust better than an LLC for privacy?

A land trust keeps the beneficiary's name off the deed, and it does not file a public annual report. An LLC offers liability separation that a land trust does not. Many investors weigh both goals with an attorney before choosing.

Does an LLC have to report its owners to FinCEN?

Not anymore for U.S. companies. FinCEN now exempts them from beneficial ownership reporting. However, certain all-cash home purchases by entities and trusts must be reported under the residential real estate rule.

Sources

• Florida Statutes, section 201.02 (documentary stamp tax on deeds)
• Florida Statutes, section 196.041 (homestead and beneficial interests)
• Florida Statutes, section 196.031 (homestead exemption)
• Florida Department of Revenue, Save Our Homes
• Palm Beach County Property Appraiser, FAQ
• Fannie Mae Selling Guide B2-2-01, borrower eligibility
• Florida Division of Corporations, annual report
• FinCEN, beneficial ownership information
• Holland and Knight, FinCEN delays residential real estate rule

This article is general information, not legal, tax or financial advice. Ownership, tax and lending rules change, so talk with a Florida real estate attorney, a tax advisor and your lender before you choose how to hold title.

Own a rental or second home in Palm Beach County? We can prepare a property and rental analysis so you can decide whether to hold, restructure or sell. Request an investor analysis or check what your property is worth. Buying your next investment? Talk with a buyer's agent about the numbers first.