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DSCR + LLC Guide

How to Start an LLC in Florida for a DSCR Loan

To start an LLC in Florida, search your business name on Sunbiz, appoint a Florida registered agent, file Articles of Organization online with the Florida Division of Corporations, get a free EIN from the IRS, and sign an Operating Agreement. Once the LLC is active, it can take title to a rental property and close a DSCR loan with TAG Lending Group in the LLC's name.

Why Close Your DSCR Loan in an LLC?

DSCR loans are business-purpose loans for investment property, so most DSCR investors let an LLC hold title and sign the note. Setting the LLC up correctly before you write an offer keeps the entity from delaying your closing.

Why Investors Use an LLC

  • Title to the rental property vests in the LLC instead of your personal name.

  • Keeps rents, repairs and mortgage payments separate from personal finances.

  • Makes it simpler to bring in partners, with ownership set in the Operating Agreement.

  • A common structure for investors growing a portfolio one property at a time. Ask your attorney how it affects liability protection.

How DSCR Works With an LLC

  • The loan qualifies on the property's rent compared with the full monthly payment (PITIA).

  • The LLC is the borrower and title holder. Members typically sign a personal guaranty.

  • Credit is pulled on the guarantors. No tax returns, W-2s or personal income documents.

  • Most DSCR investors accept a newly formed LLC. The entity doesn't need its own history.

How to Start an LLC in Florida: 7 Steps

Complete these in order. Most steps can be done online. Fees and deadlines below were verified with the Florida Department of State, Division of Corporations, in October 2026. Confirm current amounts on Sunbiz before filing.

  1. Search your LLC name on Sunbiz

    The name must be distinguishable from every entity already on file with the Florida Department of State and must contain "Limited Liability Company," "LLC" or "L.L.C."

    Pick a name you're comfortable seeing on the deed, the insurance policy and every lease.

    Search names on Sunbiz
  2. Appoint a Florida registered agent

    The registered agent must have a physical Florida street address (no P.O. box) to accept legal notices. An individual, such as a member of the LLC, or a business entity with an active Florida filing can serve. The LLC cannot be its own registered agent, and the agent must sign the acceptance in the Articles.

  3. File Articles of Organization

    File online through Sunbiz with the Florida Division of Corporations. The required state fee is $125: a $100 filing fee plus a $25 registered agent designation fee. A certified copy ($30) and a certificate of status ($5) are optional. You'll list the LLC name, principal and mailing addresses, the registered agent and the people authorized to manage the LLC.

    List everyone who will sign loan documents as a member or manager. Lenders match signers against the Articles and the Operating Agreement.

    File on Sunbiz
  4. Get an EIN from the IRS

    Apply online after Florida approves the LLC. It's free and takes minutes. Save the confirmation letter (CP 575) as a PDF before closing the window.

    Lost the letter? Request a 147C verification letter from the IRS. Lenders accept either one.

    Apply for an EIN at IRS.gov
  5. Sign an Operating Agreement

    Florida doesn't require you to file one with the state, but DSCR lenders require it. It sets ownership percentages and who can act for the LLC, and every member signs it.

    Include language that authorizes the LLC to borrow and pledge real estate, and names who can sign.

  6. Open a business bank account

    Bring the filed Articles, the EIN letter and the Operating Agreement to open an account in the LLC's name. Rents, repairs and the mortgage payment should run through it.

    If down payment funds move from a personal account, keep the statements that show the transfer.

  7. File the annual report every year

    File on Sunbiz between January 1 and May 1, starting the year after the LLC is formed. The LLC annual report fee is $138.75. Filing after May 1 adds a $400 late fee ($538.75 total). If the report isn't filed by the third Friday of September, the LLC is administratively dissolved, and reinstatement costs $100 plus each year's annual report fee.

    Lenders check Sunbiz for active status before closing. A dissolved LLC can't close until it's reinstated.

Documents to Close a DSCR Loan in Your LLC

Most DSCR investors ask for these. Send them with the application and underwriting won't have to come back for them.

  • Articles of Organization, as filed and approved by Florida.

  • Operating Agreement, signed by every member with ownership percentages.

  • EIN confirmation, IRS CP 575 or 147C letter.

  • Certificate of status ($5 from Sunbiz) or active status on Sunbiz, verified shortly before closing.

  • W-9 for the LLC, signed by an authorized member.

  • ID for each guarantor, unexpired government-issued photo ID.

  • Borrowing resolution, when the LLC has more than one member.

  • Personal guaranty, signed at closing by the guarantors.

Pick the TAG DSCR Program for Your LLC

LLC vesting is common across TAG's DSCR programs. Choose the one that fits your experience, leverage and property, and confirm entity eligibility for your scenario with your loan officer.

DSCR Loan Program

Qualify on the property's rental income potential instead of tax returns or W-2s. Available for purchase, rate and term refinance, and cash-out refinance.

View DSCR Loan Program

DSCR Investor Program

Loan amounts from $125,000 up to $3 million, up to 85% LTV depending on DSCR tier, with 1.25, 1.00 and below-1.00 DSCR options. Foreign national and first-time investor options may be available.

View DSCR Investor Program

DSCR Max Investor Program

Built for seasoned investors seeking maximum leverage and portfolio growth across purchase, refinance and cash-out scenarios.

View DSCR Max

DSCR Investor Loan 85% LTV

High-leverage financing up to 85% LTV for eligible borrower and property scenarios, qualified on rental income and property cash flow.

View DSCR 85% LTV

LLC and DSCR Loan FAQs

Can I get a DSCR loan in an LLC in Florida?

Yes. DSCR loans are business-purpose loans, and most DSCR investors let the LLC take title and sign the note, with the members personally guaranteeing the loan.

Can a brand-new LLC close a DSCR loan?

With most DSCR investors, yes. The loan is underwritten on the property's rent and the guarantors' credit, not the age of the LLC.

How much does it cost to form an LLC in Florida?

The required state fee is $125: a $100 filing fee for the Articles of Organization and a $25 registered agent designation fee. After that, the LLC annual report costs $138.75 each year if filed between January 1 and May 1, or $538.75 if filed after May 1.

Does a new Florida LLC need to file a beneficial ownership (BOI) report?

No. Under FinCEN's final rule effective August 14, 2026, LLCs formed in the United States are permanently exempt from beneficial ownership reporting under the Corporate Transparency Act. Foreign companies registered to do business in the U.S. may still need to report. Lenders may still ask for ownership information as part of underwriting.

Do I need tax returns to qualify for a DSCR loan?

No personal income documents or tax returns. The property's rent qualifies the loan. Credit is pulled on the guarantors, and you'll show assets for the down payment, closing costs and reserves.

How much down payment do I need for a DSCR purchase?

Some DSCR investors allow as little as 15% down on a purchase. TAG recommends 25% down so the property cash flows and to avoid Loan-Level Price Adjustments (LLPAs), which can apply when the rent does not cover the mortgage payment. Down payment, reserves and closing costs vary by investor, DSCR, credit and experience.

Can I buy in my own name and move the property into an LLC later?

It's possible, but deeding a financed property to an LLC can raise due-on-sale and title insurance questions. Closing in the LLC from the start avoids both. Talk to your attorney before transferring title.

Do I need an attorney or CPA to form an LLC?

Not to file with the state. Both are worth a conversation for the Operating Agreement, liability protection and tax treatment. TAG Lending Group doesn't provide legal or tax advice.

Ready to Close Your DSCR Loan in Your LLC?

Connect with a loan officer to review your investment property, your LLC status and the right DSCR program for your scenario.

How We Calculate DSCR: The 1.00 Ratio

DSCR = Monthly Rent ÷ Monthly PITIA (principal, interest, taxes, insurance and HOA). A 1.00 ratio means the rent covers the full payment. Example: $2,900 rent ÷ $2,900 PITIA = 1.00. Above 1.00, the property cash flows. Below 1.00? Most of our investors go as low as a 0.75 DSCR, and No-Ratio programs are available when the rent doesn't need to cover the payment.

Rent We Can Use

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A signed long-term lease.

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The appraiser's market rent schedule (Form 1007).

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Short-term rental income (Airbnb, VRBO and similar), based on rental history or market data, depending on the investor.

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Your investing experience affects which rent source and minimum ratio an investor accepts. First-time investors may need a 1.00 or higher.

Flexibility That Helps You Qualify

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Add a partner or family member to title or your LLC and qualify using their credit.

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No ownership seasoning required with some of our investors. Others require 6–12 months of ownership before a cash-out.

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Close in your LLC, with no tax returns, W-2s or pay stubs.

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Minimum 620 credit score. Foreign national programs do not require a U.S. credit score.

Run Your DSCR Numbers

Do you own an investment property today?

Yes shows how to turn that equity into your next properties. No goes straight to the purchase calculator.

How the Equity-to-Portfolio Strategy Works

1

Refinance the rental you own

A DSCR cash-out refinance replaces your current loan with a larger one, typically up to 75–80% of the appraised value depending on the investor.

2

Pull out the equity

The difference between the new loan and your current balance, less closing costs, comes back to you as cash.

3

Use it as down payments

That cash becomes the down payment, closing costs and reserves on one or more income-producing properties.

4

Qualify each on its rent

Each new purchase can be financed with a DSCR loan that qualifies on that property's rent and can close in your LLC.

How a DSCR Purchase Works

1

Pick the rental

Choose a property that rents for at least its full payment, or close to it.

2

Rent qualifies the loan

We use the lease, the appraiser's 1007 market rent or short-term rental data instead of tax returns.

3

Bring down payment and reserves

DSCR purchases can start at 15% down with some investors. TAG recommends 25% down so the property cash flows and to avoid Loan-Level Price Adjustments (LLPAs) that apply when rent does not cover the payment.

4

Close in your name or LLC

Close as an individual or in your LLC, then repeat on the next one.

Equity-to-Portfolio Calculator

DSCR Purchase Calculator

Enter your own numbers to see a hypothetical illustration. TAG Lending Group does not quote rates on this page: enter an interest rate assumption to see payments, cash flow and DSCR. Your loan officer will give you actual terms for your scenario.

Property you own

Next properties

Property you want to buy

As little as 15% down with some investors. TAG recommends 25% down to cash flow and avoid Loan-Level Price Adjustments (LLPAs) when rent does not cover the payment.

Assumptions

Closing costs are estimated for you at 3% (low) to 5% (high).

Estimated cash out

–After 3–5% closing costs

Additional properties

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Properties controlled

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Total monthly rent

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Est. net monthly cash flow

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DSCR per new property

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Loan amount

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Est. cash to close

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Principal & interest

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Total PITIA

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DSCR

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Est. monthly cash flow

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Before vs. after (monthly)

Enter your name, email and phone to get a PDF of these numbers you can text to yourself or save.

Hypothetical illustration for educational purposes only. Not an offer, a rate quote or a commitment to lend. Results depend entirely on the assumptions entered and do not include vacancy, repairs, management, capital expenses or changes in rent, taxes, insurance or value. Payments shown are principal and interest on the selected loan term (30 years unless changed), or interest only if selected; actual programs, terms, LTV limits, reserves, minimum DSCR and closing costs vary by investor. Minimum 620 credit score; foreign national programs do not require a U.S. credit score. Business-purpose investment property financing only. Investing in real estate involves risk, including loss of equity. Consult your own tax, legal and financial advisors. TAG Lending Group, LLC, NMLS #2329372. Equal Housing Opportunity.