Learn the basics of federal and state taxation.
Due: April 1 (if the business’s fiscal year corresponds to the calendar year)
Corporations doing business in Florida are subject to the 5.5% tax. C-Corporations pay the tax on form F-1120. If a corporation owes more than $2,500 annually in Florida corporate income tax, it must make estimated tax payments on form F-1120ES on or before the first day of the fifth, seventh and tenth month of the taxable year and the first month of the following tax year.
If the business shows net income of $45,000 or less and conducts all business in Florida, it may file the short form, F-1120A.
Limited liability companies classified as a corporation for federal tax purposes must file a Florida corporate income tax return. Limited liability companies that are classified as partnerships for federal tax purposes are required to file a Florida Partnership Information Return (form F-1065) if they are doing business in Florida and one or more of their owners are corporations.
An S-Corporation in Florida files an F-1120 corporate income tax return for the first year it does business in the state. Unless there is federal taxable income at the corporate level, no state filing is required for subsequent years.
The Florida Department of Revenue provides free tax education seminars on Florida state law and taxes.
Due: January 31, April 30, July 31, October 31
Floridians are required to report wages and pay taxes to the Unemployment Compensation program if they paid $1,500 in wages within a calendar quarter, have employed one person for any portion of a day in 20 different weeks during the calendar year or are liable for federal unemployment tax (FUTA).
The initial tax rate for new employers is 2.7% for the first 10 calendar quarters (or in some cases 11 quarters), at which time the business will receive a computed tax rate. The maximum tax rate allowed by law is 5.4%. Unemployment taxes must be paid on the first $7,000 of wages paid to each employee per year.
Taxes are paid quarterly on form UCT-6 to the Florida Department of Revenue. Businesses that pay taxes on 10 employees or more in any calendar quarter must use e-filing.
and Use Tax
Due: First day of the month
Florida businesses must collect sales tax for many products and services. If your business will involve taxable transactions, you must register as a sales and use tax dealer (form DR-1). Most businesses pay monthly on form DR-15, with returns and payments due on the first day of the next month after the tax was collected. Payments are late after the 20th of the month. Businesses that file $1,000 or less per year, however, may file quarterly. If a business files $500 or less, it may file semiannually; $100 or less may file annually. Businesses that pay $20,000 annually in sales and use tax are required to file electronically at myflorida.com/dor.
Surtax (Local Option)
Due: First day of the month
Many Florida counties impose an additional discretionary sales surtax on transactions that are subject to the state sales and use tax. Businesses report the surtax on form DR-15 with sales and use tax. These local option taxes range from 0.50% to 1.5%. New rates become effective on January 1 each year, but expiration dates vary. In 2009, 59 of Florida’s 67 counties impose sales surtaxes.
Use Tax on Out-of-State
Due: First day of the month after the quarter in which purchase was made
When out-of-state sellers fail to collect Florida sales tax, buyers must make the payment on their own. The tax applies to items purchased out of state from internet sites, mail order catalogs, auctions, shopping networks or toll-free shopping services. It also is imposed on items purchased during out-of-state travel when the merchandise is shipped to a location in Florida. Form DR-15MO is used to make payment.
Personal Property Tax
Due: April 1
Florida businesses that own tangible personal property (equipment, furniture, computers, etc.) that is not included in the assessed value of the real property must pay an annual tax. Business inventory is not taxed. The tax is paid on form DR-405 to the county property appraiser.