Florida LLC vs Nevada LLC

Forming an LLC in Nevada instead of Florida does not provide the asset protection benefits that Nevada formation companies advertise. Nevada’s charging order statute covers single-member LLCs, and Nevada allows anonymous ownership—but Florida courts apply Florida creditor remedies to a Florida debtor’s LLC interest regardless of where the LLC was formed.

Nevada LLC formation was popular a decade ago, but rising fees have made it less competitive even on cost. Many formation services now recommend Wyoming over Nevada for the same claimed benefits at lower prices. For Florida residents, neither state offers a meaningful advantage over a properly structured Florida LLC.

Charging Order Protection

Nevada’s LLC statute provides that the charging order is the sole and exclusive remedy available to a personal creditor of any LLC member, regardless of whether the LLC has one member or multiple members. The statute prohibits foreclosure on the membership interest and judicial dissolution. Florida limits exclusive charging order protection to multi-member LLCs and permits creditors to foreclose on a single-member LLC interest after Olmstead v. FTC, 44 So. 3d 76 (Fla. 2010).

This difference is the primary selling point for Nevada LLCs, but it assumes that a Florida court would apply Nevada law to a collection proceeding against a Florida resident. Florida courts treat an LLC membership interest as intangible personal property located where the debtor resides. When a creditor obtains a judgment against a Florida resident and seeks to collect against that person’s LLC interest, the creditor files in Florida, and the court applies Florida law—not Nevada’s statute.

A Utah court addressed the same issue in Fairstar Resources v. American Institutional Partners. The debtor’s LLCs were organized in Delaware, which provides charging order exclusivity, but the LLCs’ principal place of business and management were in Utah. The Utah court applied Utah’s remedies law and permitted foreclosure of the debtor’s interest, despite Delaware’s protective statute. Florida practitioners expect Florida courts would reach the same result with a Nevada LLC owned by a Florida resident.

The structural solution is the same regardless of the state of formation. A multi-member LLC receives exclusive charging order protection under Florida law, which is enforceable in the Florida courts where collection proceedings actually take place.

The Tenants by the Entirety Trap

Forming in Nevada creates a risk that does not exist with a Florida LLC. Nevada does not recognize tenants by the entirety ownership. A married couple in Florida who holds their LLC membership interest as tenants by the entirety gains protection from either spouse’s individual creditors—a layer that operates independently of the LLC’s charging order shield.

If the same couple forms their LLC in Nevada, and a creditor argues that Nevada law governs the ownership characteristics of the membership interest, the entireties protection could be lost. An Iowa Supreme Court case illustrates this risk. A Florida couple who jointly owned an interest in an Iowa LLC lost the tenancy by the entirety protection that would have applied under Florida law. The Iowa court applied Iowa law, which does not recognize entireties ownership.

Forming in Nevada to gain charging order protection for a single-member LLC while losing entireties protection for a married couple is a poor trade. The entireties exemption is one of the strongest creditor protections available under Florida law, and the 2025 Loumpos v. Bank One decision expanded its reach to accounts converted from individual to joint ownership.

Privacy and Anonymous Ownership

Nevada does not require LLCs to disclose members or managers in public filings. Florida requires the name and address of at least one manager or managing member. This privacy difference is the same feature Wyoming offers, and it can be useful for keeping an individual’s name out of public databases.

A Florida resident can use a Nevada LLC as the listed member or manager of a Florida operating LLC, creating a layer of anonymity in Florida’s public records. This holding company structure has legitimate privacy value for real estate investors and business owners who want to keep their names out of public searches.

Privacy does not equal asset protection. Post-judgment discovery compels the debtor to disclose all business interests regardless of public record visibility. Anonymous ownership may slow an initial asset search but cannot prevent a creditor with a judgment from identifying and reaching the debtor’s LLC interests through sworn depositions and fact information sheets.

Cost Comparison

Nevada’s formation and maintenance costs are higher than both Florida and Wyoming across every category.

	Florida LLC	Nevada LLC	Nevada LLC (operating in FL)
Formation filing	$125	$425	$425 + foreign registration (FL)
Annual report	$138.75	$150 + $200 business license	$350 (NV) + $138.75 (FL)
Registered agent	1 state	1 state	2 states

Nevada requires an annual state business license fee of $200 in addition to its $150 annual list filing fee. A Nevada LLC that also operates in Florida must register as a foreign LLC, file annual reports in both states, and maintain registered agents in both states. A dual-state Nevada LLC costs approximately $490 per year before registered agent fees—compared to $138.75 for a single Florida LLC.

When a Nevada LLC Makes Sense

A Nevada LLC is appropriate when the business operates in Nevada, the owner resides in Nevada, or the LLC holds assets physically located in Nevada. In those circumstances, Nevada’s courts apply Nevada law, and the statute’s protections function as intended.

A Nevada LLC may also work as an anonymous holding company for a Florida resident who wants to keep personal information off Florida’s public filings. In that limited role, Nevada provides genuine privacy value, though Wyoming offers the same anonymity at lower cost.

For any purpose related to asset protection of a Florida resident’s membership interest, a Florida LLC structured with multiple members and a properly drafted operating agreement provides stronger and more reliable protection than a Nevada LLC. The protections are enforceable in the courts where collection actually happens, and the structure preserves tenants by the entirety eligibility that a Nevada formation would risk. The LLC overview covers how Florida LLCs protect membership interests from personal creditors.