This one comes up from folks whoa re accustomed to buying commercial property:
Should I form an LLC to buy my house in Florida?
I talk about the various ways one can take title to home elsewhere on my site. The question here is specific as to taking title as an LLC? Taking title as a Florida LLC does offer some asset protection. However it’s only an option for those who can but the property outright as most, not all but most, loans will not allow this to be how title is held. Also, an LLC may not be eligible a homestead exemption where some trusts are. An LLC is shielded from certain collections but a recent Florida Supreme Court found in FTC Vs Olmstead that…Question: “Whether Florida law permits a court to order a judgment debtor to surrender all right, title, and interest in the debtor‘s single-member limited liability company to satisfy an outstanding judgment. We answer the rephrased question in the affirmative. Thus, the asset protection against creditors of placing property into an LLC is diminished in Florida for those which are Single Member LLC’s. If you are going to purchase the property in an LLC make it multi member and make sure the funds come from each member. So, 100k property in a 2 member LLC then have each member fund 50k separately.
