Large Language Models (LLMs) have showcased their potential in building generative recommendation systems through fine-tuning user behavior data. However, utilizing the user behavior data may pose significant privacy risks like in the traditional recommender models, potentially leading to ethical dilemmas and violations of data protection regulations. To address the privacy concerns, Federated Learning for Recommendation (Fed4Rec) has been identified as a promising solution. However, directly applying Fed4Rec in the LLM context introduces two challenges: 1) exacerbated client performance imbalance, which ultimately impacts the system’s long-term effectiveness, and 2) substantial client resource costs, posing a high demand for clients’ both computational and storage capability to locally train and infer LLMs.To tackle these challenges, we propose a federated framework for LLM-based recommendation (shorted as FELLRec). Generally, FELLRec designs two key strategies. 1) Dynamic balance strategy, which designs dynamic parameter aggregation and learning speed for different clients during training, aiming to ensure relatively balanced performance across clients. 2) Flexible storage strategy, which selectively retains certain sensitive LLM layers on the client side, while offloading other layers to the server, aiming to preserve privacy while saving resources. Specifically, FELLRec flexibly maintains those input and output layers on the client side to ensure the protection of all sensitive information. Experiment results show that FELLRec can achieve a more balanced client performance and improved overall performance in a computational and storage-efficient way while safeguarding user privacy well.