Whether you need to authorize your out-of-state LLC to do business in Florida if it owns real estate depends on what you are doing with the real estate. You need to authorize your out-of-state LLC to do business in Florida if you are “transacting business” in Florida. In general, if the real estate your out-of-state LLC owns in Florida is generating income, then you are likely transacting business in Florida. For instance, owning real estate and renting it out is considered transacting business in Florida.
While generating income from the real estate owned by your out-of-state LLC will likely amount to transacting business in Florida, owning real estate, in and of itself, is not considered transacting business in Florida. See Florida Statute 605.0905(1)(m). If your out-of-state LLC owns real estate and it generates no income, then your are likely not transacting business in Florida. Thus, if your out-of-state LLC is only holding real estate without generating any income, then you do not need to authorize your out-of-state LLC to do business in Florida.
