Florida Real Estate Investor Guide · New 2026 Legislation · Palm Beach County
Florida's New Protected Series LLC Law: A Guide for Palm Beach County Real Estate Investors
Quick Answer
On July 1, 2026, Florida's new Protected Series LLC law (Senate Bill 316, codified at Fla. Stat. §§605.2101–605.2802) took effect, allowing a single parent LLC to establish multiple internal protected series — each with its own assets, members, and a statutory liability shield separating it from the parent LLC and every other series. For a real estate investor holding multiple Palm Beach County rental properties, this can mean placing each property in its own series for as little as $25 per designation, instead of paying $125 plus a $138.75 annual report fee to form and maintain an entirely separate LLC for every property — provided strict recordkeeping rules are followed to keep the liability shield intact.
By Jean Taveras, Broker-Owner, Atlis Property Management · Updated July 2026
Florida just joined a small number of states with a comprehensive series LLC framework — and for investors building a portfolio across Jupiter, Palm Beach Gardens, West Palm Beach, Boca Raton, Delray Beach, Boynton Beach, Wellington, Riviera Beach, and the rest of Palm Beach County, this is one of the more consequential business laws in years. This guide covers what it does, what it costs, and what to get right.
What Is a Protected Series LLC, Exactly?
A Protected Series LLC isn't a new type of entity you file for directly — you cannot go to the Florida Division of Corporations and form a "Series LLC" from scratch. Instead, any existing, active Florida LLC becomes a series LLC the moment it files its first Designation of Protected Series. From that point forward, the parent LLC can establish one or more protected series, each of which can hold its own assets, have its own members and managers, and carry its own liabilities and business purpose, all under the umbrella of the single parent entity.
The defining feature is what attorneys call a horizontal liability shield. Under Florida's new statute, the debts, obligations, and liabilities of one protected series are enforceable only against that series' own assets. The parent LLC is not liable for a series' obligations simply by being the parent, and no series is liable for the obligations of any other series. In practical terms, if a lawsuit arises connected to one rental property held in one series, the assets in every other series — and the parent LLC itself — are generally insulated from that specific liability, as long as the statutory recordkeeping requirements have been followed.
Why This Matters Specifically for Real Estate Investors
The most common use case attorneys cite is exactly the situation many Palm Beach County landlords are already in: an investor holding multiple rental properties who wants real liability separation between them without the cost of a separate LLC for every property. Under the new law, each property can be placed into its own protected series under one parent LLC, so a slip-and-fall claim or tenant dispute tied to one property generally can't reach the equity in the investor's other properties.
This is a real upgrade over the two traditional options: one LLC holding everything (where a serious claim threatens the whole portfolio) or a brand new LLC per property (multiplying formation costs and annual fees with every acquisition). The series structure delivers the liability separation of the second option at a cost much closer to the first.
The Real Cost Comparison: Series vs. Separate LLCs
According to the Florida Division of Corporations, designating a protected series costs $25 per series, filed online through Sunbiz, and a protected series does not file its own annual report — only the parent LLC does. Compare that to forming an entirely separate Florida LLC for each property: $125 to form it, plus a mandatory $138.75 annual report fee every single year that LLC exists. For an investor with a growing portfolio, the math compounds quickly.
| Portfolio Size | Separate LLCs: One-Time Cost | Separate LLCs: Annual Cost | Series LLC: One-Time Cost | Series LLC: Annual Cost |
|---|---|---|---|---|
| 3 properties | $375 (3 × $125) | $416.25/yr (3 × $138.75) | $200 (1 parent + 3 series) | $138.75/yr (1 report only) |
| 5 properties | $625 (5 × $125) | $693.75/yr (5 × $138.75) | $250 (1 parent + 5 series) | $138.75/yr (1 report only) |
| 10 properties | $1,250 (10 × $125) | $1,387.50/yr (10 × $138.75) | $375 (1 parent + 10 series) | $138.75/yr (1 report only) |
Figures based on published Florida Division of Corporations filing fees ($125 LLC formation, $138.75 LLC annual report, $25 per protected series designation) as of the law's July 1, 2026 effective date. Registered agent fees, if used, are excluded and apply similarly under either structure.
For a 10-property portfolio, that's roughly $875 saved in one-time formation costs and over $1,248 saved every single year afterward — savings that scale up with every additional property added to the structure, since each new property costs $25 to add as a series versus $125 plus recurring annual fees as a standalone LLC.
How to Actually Set One Up
The Basic Process, Per the Florida Division of Corporations
- Start with an active Florida LLC. You cannot file a standalone "series LLC" — an existing LLC becomes a series LLC when it designates its first protected series.
- File a Designation of Protected Series online through Sunbiz. This has only been available starting July 1, 2026, and currently must be filed online.
- Follow the naming rule. Each protected series name must begin with the full legal name of the parent LLC, followed by a designation such as “protected series,” “P.S.,” or “PS.” Strict compliance with this naming format is required.
- Pay the $25 filing fee per series — each additional property added later is simply another $25 designation, not a new LLC formation.
- A Certificate of Status is available for $5 per series as an optional add-on, useful for lenders or title companies that request proof of good standing.
⚠ The Recordkeeping Requirement You Cannot Skip
The liability shield between series is not automatic — it depends entirely on maintaining separate books, records, and asset allocations for each series, distinct from the parent LLC and every other series. Commingle the funds or records of two series, or fail to document which assets belong to which series, and a creditor may be able to pierce the shield and reach assets an investor believed were protected. Attorneys who worked on Florida's earlier LLC statute have specifically cautioned that some owners may underestimate how much day-to-day discipline this structure actually requires — separate bank accounts, separate records, and consistent documentation of which series owns what, on an ongoing basis, not just at formation.
What's Still Untested Under This New Law
Because the statute only took effect July 1, 2026, there is essentially no case law yet interpreting how Florida courts, federal courts, or courts in other states will apply it in a contested dispute. Legal commentators have flagged bankruptcy treatment and charging order enforcement as open questions existing case law from other series-LLC states doesn't fully resolve. There's also a broader, longstanding uncertainty across every state with series LLC laws: how a court in a state without series LLC legislation will treat the internal liability shield if a series is sued somewhere other than Florida.
None of this means the structure isn't worth using — Florida modeled its law on the Uniform Protected Series Act, a well-vetted model statute adopted elsewhere, specifically to reduce this uncertainty over time. But it does mean this deserves real legal guidance, not a do-it-yourself checkbox.
Should You Use One for Your Palm Beach County Rental Portfolio?
For an investor holding two or more rental properties, a protected series LLC is worth a conversation with a Florida attorney — the cost savings are significant, and the liability separation addresses a real risk every multi-property landlord already carries. For a single-property owner, a traditional single-member LLC likely remains simpler and sufficient, since there's no second property to protect against.
Whichever entity structure ends up holding title to your properties, someone still has to handle the leasing, maintenance coordination, rent collection, and tenant relationships underneath it. Atlis manages properties for owners across every entity structure — individual ownership, multi-member LLCs, and now protected series — and the property management side of the equation doesn't change based on how the ownership is structured above it.
“We're already fielding calls from owners asking whether they should restructure into a series now that the law is live. My answer is always the same: talk to a real estate attorney about the entity side, and let us handle everything that happens once the property is actually rented — those are two different jobs, and you want a specialist for each.”
— Jean Taveras, Broker-Owner, Atlis Property Management & Atlis Realty · FL Broker CQ1071712
However you structure ownership, Atlis manages the property.
Individual LLC, multi-member entity, or a new protected series — Atlis provides full-service property management for Palm Beach County rental owners regardless of entity structure. FL Broker CQ1071712 · BBB Accredited.
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What is a Protected Series LLC in Florida?
A Protected Series LLC is a standard Florida LLC that has designated one or more "protected series" under Florida Statutes §§605.2101–605.2802. Each protected series can hold its own assets, have its own members and managers, and carry its own liabilities — while a statutory "horizontal" liability shield keeps the debts of one series from reaching the assets of the parent LLC or any other series, provided strict recordkeeping requirements are followed.
When did Florida's Protected Series LLC law take effect?
Florida Senate Bill 316 (companion House Bill 403) was signed into law by Governor Ron DeSantis on June 20, 2025, and took effect on July 1, 2026. The effective date was intentionally delayed roughly a year to give the Florida Department of State time to build the necessary online filing forms and procedures into the Sunbiz system before any protected series designations could be filed.
How much does it cost to add a protected series to my Florida LLC?
According to the Florida Division of Corporations, designating a protected series costs $25 per series, filed online through Sunbiz. This is separate from and far less than the $125 filing fee required to form an entirely new Florida LLC, and a protected series does not file its own annual report, unlike a standalone LLC, which owes a $138.75 annual report fee every year.
Is a protected series a separate legal entity from the parent LLC?
No. A protected series is not a separate legal entity and does not receive its own record or document number on Sunbiz. It exists only as a legally distinct division within the parent LLC. This is different from forming a separate, freestanding LLC for each property, which does create an entirely new legal entity with its own filings and ongoing fees.
What happens if I don't keep separate records for each protected series?
The liability shield between series depends entirely on maintaining separate books, records, and asset allocations for each series. If a series' assets and records become commingled with another series or with the parent LLC, a creditor may be able to pierce the liability shield and reach assets that were intended to be protected. This recordkeeping obligation is not optional and should not be treated casually.
Can I use a Protected Series LLC to hold multiple rental properties in Palm Beach County?
Yes, and this is one of the primary use cases the law was designed to support. An investor can place each rental property into its own protected series under a single parent LLC, so a lawsuit connected to one property is generally limited to that property's series, while the investor's other properties remain shielded — all while filing and maintaining only one parent LLC rather than a separate LLC for every property.
About the Author — E-E-A-T Disclosure
Jean Taveras — Broker-Owner, Atlis Property Management LLC
3801 PGA Blvd., Ste. 600, Palm Beach Gardens, FL 33410 · 561.473.3664 · info@atlispm.com
FL Real Estate Broker License CQ1071712 — myfloridalicense.com · BBB Accredited through April 2027
Legal and legislative details in this article are sourced from the Florida Division of Corporations (dos.fl.gov/sunbiz), the Florida Bar Journal, and published analysis from Florida business law firms including Holland & Knight and Berger Singerman, current as of the law's July 1, 2026 effective date. Filing fees cited reflect published Florida Division of Corporations fee schedules at that date and are subject to change.
This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Entity formation and asset-protection planning should always be reviewed with a licensed Florida attorney and CPA before implementation. Atlis Property Management is a licensed real estate brokerage, not a law firm, and does not prepare LLC formation documents.
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Whether you use a protected series, a traditional LLC, or individual ownership, Atlis coordinates leasing, maintenance, and rent collection for Palm Beach County rental owners of every portfolio size.
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info@atlispm.com · 3801 PGA Blvd., Ste. 600, Palm Beach Gardens, FL 33410 · FL Broker CQ1071712 · BBB Accredited
