Hi Sabrina: Thanks so much for your question. I think it’s great that you opened an LLC for your rental property. In general, Florida offers many tax benefits to small businesses that operate there. In most cases, a business that is not set up as a C corporation doesn’t have to pay state income taxes. An LLC is usually considered a pass-through entity and is classified as a partnership for tax purposes because you have 2 members so it avoids the 5.5% minimum state tax. The owners of the LLC receive income from the LLC and aren’t taxed by Florida on this personal income. Keep in mind that Florida does require annual LLC reports to be filed each year and there are hefty fees for not filing in time. For more specific tax information I recommend working with a tax professional. I also included a helpful article on LLCs and how they’re taxed.
I live and invest in Florida so feel free to reach out if you have additional questions pertaining to real estate investing. firstname.lastname@example.org
All the best,