📝 Step-by-Step Guide: Forming an LLC for Florida Real Estate Investments

✅ Starting Your LLC for Real Estate Investment in Florida

• Step 1: Visit 👉 Sunbiz.org to search for an available business name and ensure it’s not already in use.

• Step 2: Immediately apply for a free FEIN (Federal Employer Identification Number) via IRS.gov.

  • Be sure to request digital and mailed copies for your records.

• Step 3: Register your LLC with the State of Florida through Sunbiz. (you will need your EIN #)

• Step 4: Register your business with the Florida Department of Business & Professional Regulation (DBPR), especially if you plan to operate vacation rentals or property management.

  • You can register at: 👉 myfloridalicense.com

• Step 5: Open a business bank account in your LLC’s name to keep rental income and expenses organized.

🏠 Buying Property Through Your LLC

• It’s best to purchase in the LLC’s name from the start to avoid title transfers and additional fees.

• Use the LLC for all related contracts (utilities, licensing, insurance).

• Helps with financing, tax deductions, and liability protection.

📋 Panama City Beach Short-Term Rental (STR) Requirements

(Source: 👉 pcbfl.gov STR Fire Department Info)

• Register your rental with the City of PCB.

• Pass an annual Fire Safety Inspection

• Certificate of Compliance must be displayed inside your unit.

• Your STR permit number must be shown in all advertisements.

Note: This applies only to Panama City Beach city limits. For Bay County rental regulations, click 👉 here. To check if your property is within city limits, click 👉 here.

💵 Estimate Income Before You Buy

Use data tools to assess rental potential:

• Short-Term Projections:
  👉 AirDNA Airbnb Calculator

• Long-Term Projections:
  👉 Rentometer

These platforms provide market rates, seasonal trends, and occupancy stats to help you evaluate ROI.

🛡️ Insurance & Legal Protection

• Request multiple STR-specific insurance quotes — make sure to include:

  • Liability

  • Property damage

  • Loss of income

  • Guest-caused incidents

• Some providers also offer coverage for golf carts, amenities, or furnishings.

🧠 HOA & Neighborhood Research

Before buying, review:

• HOA Budgets, Reserves, Board Meeting Minutes, By-Laws

• Milestone inspections, SIRS, special assessments, or rental restrictions

• Talk to neighbors, read online reviews, and join Facebook groups

• Get multiple rental projections from local companies – read reviews – do your research

🛍️ Bonus Business Tips

• Join your local Chamber of Commerce or visit welcome centers to learn and network.

• Add golf cart rentals to increase income potential:

  • Typical rates: $50/day or up to $300+/week, locations may vary.

• Use guest guidebooks, smart locks, and online booking software to streamline hosting.

• Track all income/expenses for tax prep and business health.

🌟 Awesome Extras to Consider Including

✅ Business Setup & Compliance

• Create an Operating Agreement: Even if you’re a single-member LLC, this internal document outlines how the business is run. It’s not required in Florida but is highly recommended for clarity and legitimacy.

• Annual Report Reminder: Florida requires LLCs to file an annual report through Sunbiz by May 1st each year to remain in good standing. Fee: ~$138.

• Business License/Tax Receipt: You must apply for a Bay County Business Tax Receipt (BTR) AND one from Panama City Beach if the property is located within city limits.

🏡 Rental-Ready Extras

• Register with the Florida Department of Revenue (DOR): If you’re collecting rent or offering short-term stays, you must collect and remit state sales tax and register at floridarevenue.com.

• Collect Local Tourist Development Tax: This applies in Bay County and can be set up via the Bay County Tax Collector’s Office.

• Create a Google Business Profile: Helps renters find your listing and increases visibility and credibility.

• Professional Photography & Floor Plan: Make your listing stand out and justify premium rental rates.

• Create a Welcome Book for Guests: Include house rules, Wi-Fi info, local eats, emergency numbers, and your favorite things to do.

📈 Marketing & Management Tips

• Sync Your Listing Across Platforms: Use tools like Guesty or Lodgify to sync Airbnb, Vrbo, and Booking.com to avoid double bookings.

• Consider Forming a Florida S-Corp (later on): For tax-saving purposes once the property generates profit (consult your CPA).

• Get an Accountant Familiar with Short-Term Rentals: STRs have specific deductions (e.g., furnishings, supplies, mileage, depreciation).

🤝 Relationship Building

• Join Local Facebook Groups: (e.g., “Panama City Beach STR Hosts” or “Gulf County Rental Owners”) – they often share vendor contacts, updates on local regulations, and marketing tips.

• Establish Relationships with Local Vendors: HVAC techs, plumbers, cleaners, and handyman services are critical. Have backups for busy seasons.

• Build a Review Strategy: Prompt happy guests to leave 5-star reviews to boost visibility and bookings on platforms like Airbnb and VRBO.

🔒 Safety & Legal Extras

• Install Smart Locks or Keyless Entry Systems: Safer and easier for both you and guests.

• Schedule Fire & Safety Inspections: Required in PCB and Bay County for STRs — you can find all compliance info here.

• Consider Liability Insurance or an Umbrella Policy: Especially for vacation rentals — short-term rentals are higher risk than long-term.

🏢 About Century 21 Ryan Realty, Danielle “Dani” Kemp

I’m a Licensed, Award Winning Real Estate Agent in Panama City Beach, Florida, with a passion for helping buyers and investors succeed. I work with CENTURY 21 Ryan Realty, a well-respected, long-established brokerage that’s been in business since the 1980s. With decades of combined industry experience, our team is known locally for trust, professionalism, and results. Whether you’re investing, relocating, or building a portfolio — we’re here to guide you every step of the way. Full Service Real Estate; Residential &  Commercial Sales, Rental Management; Long & Short.

⚠️ Important Disclaimer

I am not a Real Estate Attorney, CPA, or Mortgage Provider. This guide is for general informational purposes only. Always consult with a Licensed Professional for Legal, Tax, or Financial Advice.

I’m happy to connect you with trusted experts from my professional network — 5 Star Real Estate Attorneys, Inspectors, Lenders and Vacation Rental Pros — you can move forward confidently and compliantly.

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 Century 21 Ryan Realty, Danielle Kemp  850‑896‑2487