Florida Business Income Tax
Although Florida is a great state for individuals to move to from a tax standpoint, Florida still has a tax system, both for individuals and business entities. Unless they are exempt, a business that earns and receives income in the State of Florida must file a corporate income tax return. Sole proprietorships, individuals, estates and certain trusts do not have to file an income tax return since they are exempt. An LLC (unless it is a single member LLC owned by an individual), partnership, joint venture and C corporation must file a state income tax return. An S corporation usually will not have to file a return unless they have federal taxable income, in that case they must also file a state income tax return.
The amount of money taxed in Florida is based upon the federal taxable income modified by certain Florida adjustments to come up with your Florida net income. The tax rate is 5.5%. If your business owes more than $2,500 in Florida income tax annually, then it must make estimated payments.
There are many other rules involved in dealing with your business taxes in Florida. To discuss Florida’s business tax rules as they relate to you, please contact a tax professional to set up a meeting to discuss your situation.
