Florida Series LLC Condo and Vacation Rental Playbook: HOA Coordination, Airbnb Income, and the July 1 Checklist
Three condos in Destin. Each on a short-term rental platform. Each subject to a different HOA. July 1, 2026 changes the tools available. Here is the step-by-step sequence for getting it right.
By Jillian Dupree | floridallcservice.com | Published April 2026 | Not legal advice
Three condos in Destin. Each on a short-term rental platform. Each subject to a different HOA. Each generating income that currently pools into one LLC and one bank account.
July 1, 2026 changes the tools available to this operator. A Florida Protected Series LLC can place each condo into its own named series, with a liability wall between them, and with the parent LLC's structure intact above.
Getting there requires a specific sequence of steps. This article is that sequence.
Step 1: Read the HOA Declarations Before You File Anything
This is not step 3 or step 4. It is step 1, before the Sunbiz website opens.
Florida condo HOA declarations vary substantially in what they permit. Some declarations allow LLC ownership. Some require HOA board approval for transfers to an entity. Some prohibit short-term rentals entirely.
For a vacation rental operator, three HOA covenant issues are directly relevant to the series LLC decision:
Transfer approval requirements. If the HOA declaration requires board approval for a transfer of title from an individual to an entity, that approval requirement applies to a transfer into a protected series. Check whether this triggers the HOA's transfer approval process before filing.
Short-term rental restrictions. Many Florida condo HOAs have adopted STR restrictions in recent years. A series LLC does not override HOA STR restrictions. If the HOA prohibits rentals under 30 days in your unit's classification, the series LLC is not the issue. Compliance with the HOA covenant is the issue.
Entity ownership prohibitions. A small number of HOA declarations specifically prohibit LLC or entity ownership of units. If your HOA declaration prohibits entity ownership, the series LLC cannot hold the unit in that community. Consult a Florida real estate attorney if you encounter this provision.
Get the current HOA declaration, bylaws, and any recorded amendments. Read them or have a Florida attorney read them before making any filing decision.
Step 2: Confirm the Lender's Position on Entity Transfer
If any of your vacation rental condos carry a mortgage, the lender has a position on whether the property can be transferred to an entity.
Most conventional residential mortgages include a due-on-sale clause. A transfer of title from an individual to an LLC or series can trigger the due-on-sale clause, which theoretically allows the lender to accelerate the loan. In practice, many lenders do not exercise acceleration on this type of transfer. In law, they have the right to.
The GARN-ST GERMAIN Act provides a limited exception for transfers into certain trust structures for estate planning purposes. It does not have a parallel exception for LLC or series LLC transfers.
Before transferring a mortgaged condo into a protected series, contact the lender or consult with a Florida real estate attorney about the implications.
Step 3: Form the Parent Florida LLC
A Florida Protected Series LLC is a parent LLC that creates protected series. You cannot form a series directly without a parent LLC.
If you do not already have a Florida LLC, the parent gets formed first through the Florida Department of State Division of Corporations. The Articles of Organization must include language authorizing the formation of protected series.
The parent LLC must:
- Have a Florida registered agent with a Florida registered office address
- Pay the Florida LLC formation fee (currently $125 for the Articles of Organization)
- File an annual report each year ($138.75 for the 2026 report)
The parent LLC's operating agreement needs to be drafted by a Florida attorney to include series formation authority, governance terms for each series, and the recordkeeping requirements for the series shield structure.
Step 4: File a Protected Series Designation for Each Condo
After the parent LLC is formed and after July 1, 2026, you file a protected series designation with the Florida Department of State for each property you want to hold in a separate series.
Each protected series designation:
- Identifies the parent LLC
- Names the series (must begin with the parent LLC name and end with "Protected Series," "P.S.," or "PS")
- Designates the series' associated assets (the specific condo unit)
- Is filed with Sunbiz and pays the applicable filing fee (to be published by Florida DOS after July 1, 2026)
The series name appears on title documents for the property held in that series. A title company and a Florida real estate attorney are involved in the title transfer to the series.
Step 5: Transfer Title to Each Series
Each condo property is transferred from the current title holder to the named protected series through a deed recorded in the county property records.
For each property transfer:
- A deed is prepared naming the protected series as the grantee (for example: "Destin Rentals LLC, P.S. Beachfront One")
- The deed is executed and recorded in the county recorder's office
- The county property appraiser updates the ownership record
If the property is currently owned individually and has homestead status, the transfer will terminate homestead status and reset the assessed value. Budget for the property tax impact.
Step 6: Set Up a Separate Bank Account Per Series
This is the operational step that many investors skip and then regret.
Each series needs its own bank account, titled in the full name of that series, with its own signature authority and separate books. A Destin vacation rental platform account that sends one monthly payout for three properties needs to be reconfigured to route each property's income to the series-specific account for that property.
If your STR management software or platform does not support property-level income routing, you have two options: manage the reallocation manually with documented journal entries at the time of each deposit, or switch to a platform or management tool that supports property-level separation.
Contemporaneous records means the record is made at the time of the transaction, not reconstructed later. If a creditor ever challenges the internal liability shields, the records that matter most are the ones from the day of the transaction.
Step 7: Coordinate County Vacation Rental Licensing
Florida requires vacation rental operators to hold a state vacation rental license through the Florida Division of Hotels and Restaurants (under Florida Statute 509.241). Each property that is rented short-term requires a license.
When a vacation rental property is held in a protected series, the license applicant may be the series rather than the parent LLC or the individual owner. Confirm with the Florida Division of Hotels and Restaurants and with a Florida attorney how the licensing should be structured when the property is held in a protected series.
Additionally, many Florida counties and municipalities have their own STR licensing, registration, or permitting requirements. Confirm the local requirements for each property address.
Step 8: Confirm the Olmstead Fix at the Parent Level
A single-member parent LLC carrying a series structure retains the single-member Olmstead vulnerability at the parent level. A judgment creditor against the parent (not against any individual series) can potentially reach the parent's assets, which include ownership of the series interests.
For vacation rental operators who want maximum protection at the parent level, the fix is to make the parent LLC a multi-member entity. The simplest approach is to add a second member, such as a Wyoming holding company or a trust, that holds a small membership interest. This converts the parent to multi-member status, which restores exclusive charging order protection under Florida Statute 605.0503.
A Florida licensed asset-protection attorney handles this modification and integrates it into the operating agreement.
The July 1 Checklist
| Step | Who Does It | Timing |
|---|---|---|
| Read HOA declarations and flag restrictions | Owner + FL real estate attorney | Now |
| Confirm lender position on entity transfer | Owner + lender | Now |
| Form parent Florida LLC with series authority | Formation service + FL attorney for OA | On or after July 1, 2026 |
| File protected series designation per property | Formation service | On or after July 1, 2026 |
| Record deed transferring title to each series | FL real estate attorney + title company | After series designation |
| Open series-specific bank accounts | Owner + bank | After series designation |
| Coordinate county STR licensing for series | Owner + FL attorney + county licensing | After title transfer |
| Confirm Olmstead fix at parent level | FL attorney | With parent LLC formation |