Florida clarifies property tax treatment for charity-owned single member nonprofit LLCs.

Nonprofit and Church Legal Trends - Free Edition - September October 2007 (free edition)

As previously reported, the use by tax exempt organizations of single member limited liability companies (LLCs) is becoming increasingly prevalent. Creating a wholly-owned LLC to house an activity with particular risks may provide liability protection for the parent charity. Moreover, creating the Nonprofit LLC generally has no adverse federal tax consequences given that the IRS, through various notices, has made it clear that single member Nonprofit LLCs are “disregarded entities” for tax purposes. In other words, for federal tax purposes all financial activity of the Nonprofit LLC is reported as the activity of the member charity, and the Nonprofit LLC is not required to separately establish a basis for its tax exemption.